(a) Periodic interest savings and reduced repayments is the amount the calculator estimates you could save in interest and repayments periodically over the life of your new ME loan if you were to refinance your current loan with the ME loan you select. The interest savings amount will be higher initially and reduce each month as your principal reduces. You should also assess the differences in any annual package fees and other fees and charges.
(b) Savings over the life of the loan if you pay the periodic savings amount back into your loan is the amount the calculator estimates you could save in interest over the life of your new ME loan assuming you use all your periodic savings to make a prepayment at the end of each repayment period. Assumes $525 of discharge and mortgage registration fees and takes account of annual package fees if known.
(c) Savings in time taken to repay the loan is the length of time the calculator estimates your new ME loan could be paid off earlier than your current loan assuming (1) you use all your periodic savings to make a prepayment on your new ME loan at the end of each repayment period and (2) you would have continued to make only the required repayments on your current loan had you not refinanced.
The calculator makes various assumptions to provide only an estimate of savings. This estimate is based on the ME loan product you select for comparison and the details of your current loan that you enter for rate, loan amount, term remaining in years and repayment amount and frequency. If you’re not sure of the rate you’re currently charged, you can select a home loan from a sample currently on the market in the drop down menu and we’ll insert the rate for you. But note these sample rates are sourced from the Canstar comparison site and might be different to the rate you’re being charged. The calculator assumes that your new ME loan would have the same loan amount and term as the loan amount and term remaining you enter for your current loan. Each year is assumed to have 52 weeks or 26 fortnights, each month is assumed to be of equal length and rates and repayments are assumed to remain constant.products rates fees
1. Laura lives in her own home and had a loan of $400,000 with an 80% loan to value ratio (LVR)5. She was paying a variable interest rate of 4.45%p.a. with a big bank and decided it was worth checking if there was a better deal on offer so she could afford a holiday.
2. She plugged her numbers into Scroogify™ to see how her home loan compared to a ME loan. She could instantly see how refinancing could put more money in her pocket every month.
3. She gave her big bank the flick and refinanced7 her loan to ME with a Flexible Home Loan with Member Package 1 variable rate of 3.74%p.a.2 (comparison rate of 4.15%p.a 3). This reduced her minimum monthly repayments by around $150 per month.
4. She then saved the $150 per month for 12 months, saving around $1,800 (projected on current interest rates) and bought a well-deserved 5 nights in Tokyo through WebJet holiday packages4. End of story.
*Ok confession time. Laura's not actually real. She's just an example. What IS real is that you might be able to totally squeeze more out of your home loan if you try Scroogify™.
Want the low down on the Scroogify™ calculation? Get it here.
is a guide only - you should consider your personal situation
is based on the lowest advertised package rates6 of the major four banks (ANZ, Westpac, NAB and Commonwealth Bank) from the Canstar comparison site and does not take into account rate discounts that might be available or future changes in rates
compares these rates with the ME Flexible Home Loan with Member Package rates for principal & interest repayments current as of 22-Sep-2017
is only valid for the loan purpose, loan amount and LVR5 specified – different rates apply to different loan purpose, loan amounts and LVRs5
takes into account typical discharge and mortgage registration fees charged by both the other lender and ME, but does not take into account fee waivers or other fees and charges that might apply to the refinance or on an ongoing basis
does not take into account the value of other home loan features or benefits such as offset accounts and free credit cards
assumes 12 monthly repayments per year for the stated term and all months are of equal length, and uses unrounded amounts to derive its results
Refinanced the old loan with 30 years remaining to a new ME loan with a 30 year term.
Member Package annual fee of $395.
Interest rate is current as at 22-Sep-2017 and is subject to change. The -1.09% p.a. discount is offered off the reference rate for variable Flexible Home Loans with a Member Package where (i) the primary loan purpose at application is owner occupied (ii) repayments are principal & interest (iii) the loan amount is less than or equal to 80% of the value of your property ("LVR"). (iv) the loan amount is from $150,000 to $400,000 and (v) the application is for a new home loan. The discount cannot be used with any other rate promotion. Existing applications, internal refinances, top ups, additional advances or variations of existing home loans are not eligible. We may change or withdraw this discount at any time. If you apply after the discount has been withdrawn the Flexible Home Loan with Member Package variable rate without discount (the reference rate) will apply.
Comparison Rate based on a Flexible Home Loan with Member Package of $150,000 for a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
WebJet Holiday Deals. Depart Sydney to Tokyo with WebJet Holiday Deals and stay 5 nights at the 3.5 star self rated Hotel Gracery Tamachi in a premier single room (with complimentary wi-fi). Advertised price is $1,665pp. Holiday deals change from time to time and ME does not warrant that such a deal will be available in the future.
Loan to Value Ratio (LVR) is the loan amount divided by the value of your property (determined by ME at assessment), multiplied by 100.
Laura’s Story – checked 25/7/2017 - www.canstar.com.au
Terms, conditions, fees and charges apply. Applications are subject to credit approval.
If you're not sure of the rate you're currently being charged you should check with your lender. Your most recent home loan statement will tell you the applicable rate on the date of that statement.
Reduce your interest and repayments by around(a):
Putting this amount back into your loan could save you(b):
That's equivalent to(c):
& 11 monthstime saved in paying off your loan
The calculator results are not a quote or offer. They are a guide only limited to helping you estimate the interest you could save by refinancing with ME. You should consider your personal situation and be aware that the calculator doesn’t take into account: (i) the value to you of different features or benefits such as offset accounts and free credit cards (ii) rate discounts that might be available or future changes in rates or (iii) all fees and charges that might apply to the refinance or on an ongoing basis. Note that the quoted savings will vary depending on the variables you select to input.