Borrowers benefit from ‘rates battle’: expert

Therefore, any borrower with an interest rate above 3.0 per cent should be seeking the expert advice of a mortgage broker to help find a better deal.

“All owner-occupiers should be paying a rate in the low ‘twos’, where some consumers would be saving over 1.0 per cent on a variable loan,” according to him.

“On an average loan, this would save hundreds of dollars a month.”

While the RBA is unlikely to take its cash rate much lower, mortgage holders can still take advantage of the intense competition between lenders for their business to secure a rate reduction, Mr Koleda highlighted.

“It’s great for borrowers, it means they can save a considerable amount off their mortgage by switching from current home loans that are uncompetitive,” he said.

“If you are paying too much, ring your bank and demand a better deal. If they are not prepared to play ball, engage a mortgage broker to find you a lender with a more competitive rate.”

Mr Kolenda urged mortgage holders to be vigilant about their home loans, particularly with the economic uncertainty due to the ongoing COVID-19 pandemic.

“Don’t be complacent and just ‘set and forget’ as this can potentially cost you a lot of money. Contact a mortgage broker to make sure you are getting the best terms possible,” he concluded.