Promoted by HashChing.
As major banks increase their home loan rates for existing customers, savvy home borrowers must review their rates regularly to ensure they are on the best deal possible.
Despite the RBA maintaining a low cash rate for over two years, many banks have increased their interest rates for existing home loan customers several times during this period to boost their profit margin.
Data suggests that nearly half of Australian home borrowers have been affected by out of turn rate hikes by the banks. However, the same banks are offering low home loan rates and discounts to new customers that existing customers are missing out on.
Are you paying for your loyalty to your bank?
According to a survey, 40 per cent of Australians do not know the rate on their mortgage. Many are unwilling to switch lenders due to a misplaced sense of loyalty despite the increasing level of dissatisfaction amongst the customers of the big banks. The unwillingness to refinance could also be attributed to laziness and the fear of lengthy paperwork, which is unfounded.
So, when was the last time you revisited to your home loan? Are you even aware how your interest rate stacks up against the market average?
The best possible deal that you bagged a few years ago may no longer be competitive today! Yet, a significant percentage of home buyers think they are on the best deal offered by their lender, when, in reality, most banks are offering the best deals to new customers and hiking the rates for existing customers.
At HashChing, we reviewed several home loans to find that the average standard variable interest rate on a $300,000 home loan for 30 years is 4.44 per cent per annum*. However, on the HashChing database, nearly 25% of the deals (borrowing 80% of the loan amount) are less than 3.70 per cent per annum to new customers!
So, what are you waiting for? If you are paying 4 per cent per annum or more on your home loan, it is time to pick up the phone and demand a better deal from your lender. You can compare home loans online to find out what the competitors are offering so that you can negotiate from a position of power.
“If you are not satisfied with what your existing lender is offering you, take advantage of the competition and switch to another lender offering a better deal on your mortgage,” says Darby, a mortgage broker with HashChing.
She cites the example of Simon Jeffrey, a HashChing customer, who recently switched lenders, saving up to $5,000 per year on his repayments. His new mortgage rate of 3.86 per cent per annum is almost one per cent lower than his original rate, bringing down his repayments to $490 from $800 a week!
Refinancing is easy!
Are you a part of the 40 per cent Australian home buyers who do not know the interest rate on their home loan? If you answered ‘Yes’ to that, it is time to act and review your home loan immediately. You might be surprised to find out how much extra money you are throwing away each month that can be used to boost your savings, make extra repayments on your home loan, or kill your other debts.
Refinancing your home loan is easy. It might cost you some time and paperwork, but the hassle is insignificant compared to the savings you can pocket! By spending just a few hours shopping around for a better deal, you can save a lot of money effortlessly that can be used to meet your other life goals.
Review your home loan now
HashChing customer Simon was able to save money on his mortgage because he was aware that his bank was charging him a higher rate. Despite being turned down by his bank when he requested for a better rate, he did not give up but contacted HashChing to negotiate a lower rate on his behalf!
If you want to save money, review your home loan and compare home loan deals offered by various banks and non-bank lenders to determine if you are paying too much or not. You can use the mortgage comparison tool on HashChing to compare broker pre-negotiated home loan deals from over 80 lenders across Australia.
Once you select a home loan product, hit on the ‘Get me this deal’ button to fill up a quick contact form so that we can put a verified mortgage broker in touch with you. From here, your mortgage broker will take over and get you the best possible deal for your situation with no-fuss.
Have questions? Post your queries online to have them answered by our expert mortgage brokers, free of cost.
HashChing is Australia’s first online mortgage marketplace powered by a growing network of top brokers. The platform allows users to compare broker-negotiated mortgage rates from over 70 lenders across Australia.
*Latest analysis by Canstar shows on a $300,000 30-year home loan the average standard variable interest rate is 4.44 per cent.