Is your Home Loan suffering the “Back Book” effect?
In bank language, a Back Book is a lenders existing portfolio of home and investment property loans. If you have an existing home or investment loan then by default it forms part of your bank or lenders Back Book. So what you might ask, doesn’t everyone’s? Well yes they do. But, leaving your loan unattended in the Back Book can be costing you money.
Have you ever noticed that new borrowers often get better deals than existing borrowers?
If any of the following situations apply to you, the interest rate you are being charged may well be higher than you need to pay;
- Have you had your loan with the same lender for more than three or four years?
- Did you originally buy the property you are living in as an investment property with an investment loan?
- Are you paying Interest Only on a variable rate loan?
- Did your loan start on a discounted rate for up to three years?
- Was your loan on a fixed rate that has recently expired?
- Do you have a commercial loan secured against residential property?
- Do you have a commercial loan that hasn’t been reviewed for some time?
If your loan falls into any of the above (plus more) it could be feeling the Back Book effect and your wallet maybe suffering from excess money drain.
As an example, we have restructured three loans over the last few weeks and cumulatively saved the borrowers over $15,000 per year in interest. Think forward five years, that’s $75,000. Not an insignificant sum of money.
If you think your loan may be suffering the Back Book effect, simply email me and we can do a quick check for you.
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