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Investors’ financing options are widening as competition between the big banks fires up.
National Australia Bank kicked off the war between the majors with its Break Up campaign this week, which is attempting to show consumers it is not ‘in bed’ with its competitors.
As part of its blitz NAB is offering to pay the mortgage exit fees of clients of the Commonwealth Bank and Westpac looking to make the switch.
Meanwhile, Westpac has responded with rate cuts of as much as 0.80 per cent on some of its selected home loans taken as part of its Premier Advantage Package.
Kristy Sheppard, spokesperson for Mortgage Choice, said conditions were looking healthier for borrowers however she warned buyers must be cautious of switching lenders and ensure they are completely aware of the true benefit versus cost equation.
“It will benefit many consumers by heightening their awareness of the wide variety of home loans and lenders available,” she said.
“Let’s just hope they look beyond fancy marketing campaigns and understand the true value of any incentives.
“Our advice is to focus on comparing the real substance of home loan products available today. The benefits of switching must outweigh the overall cost of doing so."
Ms Sheppard said the new offers would stimulate borrowers to reconsider their financing arrangements.
“Mortgage Choice is already observing a significant spike in borrowers researching their options. Our website's unique page views for refinancing-related content have jumped 25 per cent on the same period in 2010 and 14 per cent on last month.”