With interest rates remaining at record lows and likely to stay that way for at least a few more years, it’s understandable if you are a mortgage holder that you can become complacent about your home loan.
Regardless of what the Reserve Bank of Australia’s official rate is set at or how low home loan interest rates are, the varying rates between lending institutions and the deal you are currently getting can make a significant impact and save you thousands of dollars in interest.
Some people are advised that if they want to get a more competitive interest rate it’s just a matter of calling your lender and asking for a better deal.
But you are more likely to get a better deal through the expert guidance of an experienced finance broker.
A good broker will know the right people to talk to and have strategies to get better rates from the existing lender. And if the bank won’t come to the party, we can find an option elsewhere.
If you go down the refinancing road, many lenders are even offering cash back incentives with headline interest rates of below two per cent.
There is still plenty of competition for your business in the lending sector and record numbers of owner-occupiers and investors have been switching to cheaper loans.
There are about 25 lenders offering between $1000 and $5000, which can typically be used for setting up a loan with the new lender, or any other purpose. 20 of the lenders are offering cashback deals on home loan rates with an advertised rate under two per cent.
A broker will take the hard work out of comparing loan products and recommend something ideally suited to your personal circumstances.
To make it easier to change loans, it can help to ensure your personal banking is separate to your home loan. That way, you can easily change your loans to get a better deal without disrupting your usual finances.