There may be some light at the end of the tunnel for Goulburn residents who purchased their home in the past three years with research suggesting a refinance could save you thousands.
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Goulburn placed at number 10 in the top 20 list of 'mortgage belt' suburbs in a report commissioned by Reduce Home Loans where they say there could be impressive savings on offer for homeowners who refinance their loan.
There are a few caveats that owners purchased at the median house price at the time and borrowed 90 per cent of the purchase price on a three-year fixed rate at 3.84 per cent.
For results, calculations included how much the owner's house would be worth as well as equity, how much would be outstanding on the loan, what the monthly repayment would be if the three-year fixed loan reverted to a variable rate of 4.75 and the subsequent savings if they refinanced.
General Manager Josh Beitz said for homeowners coming to the end of a fixed term, refinancing now could have some tangible benefits.
"Some borrowers who have reverted, or will soon revert, from a fixed to a variable loan might find themselves on a higher interest rate, which, of course, would be concerning," Mr Beitz said.
"It's important for those borrowers that can afford the rollover rate not to be complacent. That's because the Reserve Bank is likely to keep increasing the cash rate, which will translate into much higher mortgage rates."
Since June 2019 the median house price in Goulburn has risen from $421,368 to $580,000 in June 2022.
The report assumed that the average outstanding mortgage would be $357,818.
According to the data, refinancing from a 4.75 per cent interest rate to a three per cent rate would see an average saving of $349 per month or $113,127 over 27 years.
Even changing to a four per cent rate could net a saving of $49,935 over the 27 years.
Mr Beitz explained that refinancing could be reduced if interest rates continue to climb.
"Lenders always assess borrowers at higher interest rates, so as rates keep increasing, people's borrowing power will be reduced," he said.
"As a result, many borrowers will be locked out of refinancing."
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