Interest-only customer scenario
Married couple Mary and Luke both work full-time as PAYG employees. They live in a two-bedroom apartment close to the CBD that they jointly own, and also have an investment property in QLD.
Starting a family and upgrading their owner-occupied home is top-most in their minds, and they want to raise an additional $100,000 over the next 2-3 years.
Their mortgage broker has recommended that they consolidate their credit card debt and refinance both their owner-occupied and investment property loans.
Their broker is aware Resimac is currently running two promotional offers that will benefit them by way of lower interest rates. The first is a bundle offer, whereby borrowers who refinance both their owner-occupied and investment loans can take advantage of the lower owner-occupied rate for their investment loan. The second is an interest-only offer, whereby the additional IO loading is waived – a difference of roughly 30 basis points. Essentially, this makes the interest rates for Resimac’s IO loans similar to its P&I loans.*
By utilising Resimac’s offset account and switching to interest-only, Mary and Luke can save approximately $15,000 pa on their home loan repayments, which works out to be close to $60,000 over three years. Additionally, they can claim the interest-only payments on their investment property as a tax deduction.
They are conscious that they won’t be paying any principle off the loan while they’re paying interest-only, but they consider this to be an acceptable trade-off for enabling them to purchase a bigger home and start a family.
For more information about Resimac’s interest-only products or to workshop a customer scenario, please reach out to your BDM or Relationship Manager.
* Principal and interest level rates are not fixed and therefore may fluctuate depending on market conditions.