Financial educators’ tips on how to save up to $7,000 on your mortgage in 2023

Mortgage holders continue to struggle after being hit by eight consecutive interest rate hikes in 2022.

However, one financial expert believes some homeowners could potentially save thousands in repayments.

WATCH THE VIDEO ABOVE: Tips from financial educators to save on your mortgage.

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Author and financial educator Nicole Pedersen-McKinnon recommends that mortgage holders contact their bank and ask for a competitive quote.

She says several major Australian banks are offering discounts to some new customers and it’s an opportunity for people to shop around.

“It’s based on loan size, loan percentage, and even location,” Pedersen-McKinnon said at Sunrise.

The Commonwealth Bank has cut its base rate by 0.07 percent for new homeowners who own at least 30 percent of their home.

It follows that ANZ lowered its rate for new customers to 4.59 percent earlier this month.

“The first thing you have to do is go to your existing bank and say, ‘Hey, I’m a loyal customer, share the love,'” Pedersen-McKinnon said.

If that doesn’t work, customers should ask for a mortgage relief form and say they will postpone their loan because they saw a lower interest rate.

“Call their bluff and say, ‘I’m going,’ and see what they say,” Pedersen-McKinnon said.

“They’re dying to keep your credit.”

For those who could refinance, it pays to look for a bank that offers an interest rate of 4.5 percent.

She says this could save a borrower $582 a month, or nearly $7,000 a year on a $500,000 loan.

Some sites offer 4.59 percent loans for some customers including Unloan, Loans.com.au.