The Rate Reducer is an innovative loan product described as a ‘revolutionary game changer’ in the industry. If you have an owner occupied (home) loan and investment loan with the same lender, you’re probably receiving what looks like a good discount. We can help you save thousands of dollars of the life of your loan with an interest rate as low as 2%, which decreases every year as your loan balance reduces. By bundling your home and investment loan together, the Rate Reducer product can give you access to rates as low as 2%, so you can own your home sooner and start enjoying a life of financial freedom.
HOW IT WORKS
Currently, both your owner occupied loan and investment loan will have similar rates, but with one significant difference – the interest on your investment property is probably completely deductible at tax time. With the ATO product ruling PR2015/2, we’re able to rebalance your loan interest rates. By dialling down the rate on your home loan to as low as 2%, you’ll be able to pay it off much faster, as more of your repayments will be going towards paying down the principal. Plus, every year as your home loan debt reduces, so too does your interest rate! You actually get rewarded with a rate reduction for paying down your home loan – how good is that for motivation? If you’re building your portfolio and adding more investment properties, your home loan rate could decrease even further so you can own your home sooner, saving thousands of dollars over the life of your loans.