You’ve probably seen: Rates of different bank products are falling fast.
Whether its your home loans, savings accounts and term deposits, chances are the interest rate is lower than a few months ago.
Loan rates are the lowest in 26 years according to Canstar, thanks to consecutive rate cuts by the RBA.
Experts have warned that if customers paying more than 4% for their home loan might be getting the short end of the stick.
There’s almost always a cheaper or better way of doing something, but you must get into the habit of questioning your situation and challenging yourself to go after a better deal. With the current environment of falling rates that many lenders have not fully passed on to customers, there is a compelling case to find more cost-effective products.
Owner-occupier home loan rates now average 3.99%, with investors averaging 4.41% for their home loans.
What are the numbers?
However, there are a multitude of loan options on offer well below these averages. Head of financial comparison website Mozo, Kirsty Lamont has said it is up to borrowers to demand a better rate from their banks, otherwise switch to someone who will give you a more attractive rate.
Kirsty Lamont “The new magic home loan rate is 3.5%- of you are paying anything above that, you are paying way too much.
In the wake of the rate cuts, non-bank lenders have been the price leaders in the market in offering lower rates.
The big banks are hurting, losing market share and are aggressively moving rates in a bid to recapture their losses.
This is good news for borrowers.
So, how do you determine if a refinance is right for you?
First, you need to consider your financial situation and look at what you’re wanting to accomplish.
Are you wanting to save an extra $40 per week? -Is that possible?
Would that help you take an extra holiday, or could you put the savings towards paying your home loan down fast?
A quick search google search of loan products can be overwhelming, with so many lenders offering so many different rates.
Consult with a qualified professional
Every lender caters for a different borrower. Just because a product has a lower rate, does not necessarily make it suitable for your situation.
This is where borrowers take comfort in having the expertise of mortgage broker to guide them through the process and avoid any mistakes.
More than half of the loans written are done through mortgage brokers; and this number is on the rise with more and more people recognizing their value.
Probably the most important reason to use a mortgage broker that is they work for you, not the banks. They speak to you first to find out what you need, and then use their knowledge of the market to better negotiate with the lenders on your behalf. Saving you time and effort.
We’ll help you find the right loan.
- We’ll meet at a place and time that suits you.
- We do the legwork.
- You’ll get a choice of different lenders.
- You’ll have more options.
We do the hard work.
We consider a range of options for you. Using our understanding and knowledge of the current market, we look at different loans and quickly narrow it down to the ones that suit your specific needs. Then we choose together.
And we help with the whole process.
We don’t stop at just finding the finance. We’ll help complete the paperwork, manage the application process and follow it through to approval. Leaving you time to get excited about your new home.