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Have your smashed avo and eat it too!

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There’s been a lot (and we mean A LOT) of talk about smashed avocado on toast being the main culprit stopping millennials from breaking into the property market (see here, here and here).

But can we spare a thought for all those property owners who are being deprived of a delicious avocado breakfast simply because they have a mortgage (because apparently it’s only property-free millennials who can afford such luxuries).

Ok, ok we’re being facetious. Whether you agree with the avocado argument or not, who wouldn’t mind a little extra cash to spend on a delicious breakfast. So we decided to do some calculations to see if refinancing your home loan could help with that. Below we break it down.

The parameters for our calculation is as follows:

  • Loan amount: $350,000
  • Home loan term: 30 years
  • LVR: <80%
  • Loan purpose: owner-occupier
  • Loan type: principal & interest
  • Payment frequency: monthly

Average variable rate home loan (based on the variable rate home loan rates of the Big 4 according to as at 29 May 2017)

  • Interest rate: 5.28% p.a.
  • Total interest for the loan: $348,120*

Gateway variable rate home loan

  • Interest rate: 5.03% p.a.
  • Total interest for the loan: $328,707*

Savings if you refinanced to Gateway:$19,413**

Therefore, if smashed avo toast costs approx. $14 from a café, the number of avo toasts you could afford from the savings of refinancing to Gateway would be approx. 1,386.

As a weekly indulgence that would get you…26.5 YEARS of smashed avo!


*All calculations were done on our nifty loan repayment calculator.

**The example provided is only for information purposes and does not constitute advice or recommendations.

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