Four reasons your home loan interest rate is too high

Four Reasons Your Home Loan Interest Rate Is Too High

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance) wrote for The Western Weekender in June 2024 making a direct and evidence-based argument: most people reading the article were probably paying more interest on their home loan than they needed to be.

The claim was grounded in real-world experience. The majority of people who came to Bell Partners Finance to review their home loan arrangement left with a better deal. The question was not whether savings were available but why so many people had not yet gone looking for them.

Mark identified four common reasons. The first was loyalty, the habit of returning to the same bank because of familiarity, even when that bank is no longer the most competitive option. The second was laziness, taking the path of least resistance because an existing banking relationship removes some of the friction from applying. The third was complacency, simply not making the time to review a rate in a market that changes constantly as new lenders and products emerge. The fourth was fear, a sense that refinancing is complicated, time-consuming and potentially costly through break fees and disruption, when in practice many of those barriers are smaller than they appear.

For all four of these obstacles, Mark’s answer was the same: one conversation with a broker addresses them all. A broker does the comparison work, navigates the application process, handles the detail around fees and product features, and identifies the best available rate, without any cost to the borrower.

Staying on a rate that is higher than what the market offers is simply leaving money on the table. Contact Evolve Lending & Finance and find out in one conversation what difference a better rate could make.