Home loan customers looking for a better interest rate can benefit from the intense battle for business between the nation’s lenders, according to a mortgage aggregator.
With the Reserve Bank of Australia (RBA) keeping its cash rate at a record low, mortgage holders have access to some of the lowest home loan rates in history, Finsure managing director John Kolenda said.
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.