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Belinda Luc
ASIC has today launched an online calculator to help borrowers determine whether or not they will save money by switching home loans.
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The online calculator allows borrowers to compare any loan and find how much they could save by switching between products.
ASIC chairman Tony D’Aloisio said recent interest rate rises have been hard on borrowers.
“Until now, it's been difficult to work out whether another loan would leave you better off after all the exit and entry fees," he said.
“This easy to use tool shows that shopping around could save borrowers thousands of dollars off mortgage repayments.
“We’ve noticed a large spike in enquiries about bank switching and exit fees in the last couple of months.
“We have launched this tool to help borrowers compare the costs of loans and take action once they have considered the features."
ASIC’s online mortgage switching tool gives borrowers an idea of what kind of money they will save by switching and which loan can be paid off faster.
"ASIC’s Mortgage Switching Calculator will help promote competition in the mortgage market by assisting borrowers to evaluate alternative loan offers. It is particularly useful given that borrowers tend to focus on interest rate differentials rather than the total cost of switching, including exit costs and new entry fees," Mr D’Aloisio said.
