October 04, 2011
Today's Reserve Bank decision to keep the cash rate stable at 4.75% for yet another month is neither here nor there in home loan land, where lenders continue to tweak their rates and other loan aspects for the benefit of potential and existing property owners.
Mortgage Choice spokesperson Kristy Sheppard said, "Borrowers should ask themselves if they are managing their mortgage, or simply maintaining it despite today's competitive environment. Do they really know what's happening or are they essentially oblivious to all the changes that, if taken advantage of, could possibly boost the padding in their back pocket?"
"Those who will apply for a mortgage soon should also be sticking their head up, taking a little time away from the property search to explore the market. Doing so will see them better prepared for taking action quickly with confidence when they find the right property.
"Existing borrowers will be pleased to know we've recently seen many borrowers renegotiate their existing loan's interest rate, capitalise on benefits offered by their lender's retention department, take advantage of financial and other incentives to switch lenders, and more.
"Potential borrowers will be pleased to know we're seeing more lenders accepting lower deposits, taking rental income as evidence of genuine savings, relaxing restrictions around the property size they will approve a home loan for, and more.
"For both, fixed rate pricing continues to fall, there are a range of variable rate discounts on offer, fees are being waived or reduced, and the exit fee ban has come into play with some lenders even removing these fees retrospectively.
"My advice is to make sure you don't wait around for the cash rate to drop before checking the mortgage market for deals. There are plenty already on offer and more to come, as lenders work hard to attract and retain customers to combat subdued demand.
"Borrowers' negotiating power is at a high."
For home loan tips, trends, facts, data and other information, visit Facebook.com/MortgageChoice or Twitter.com/MortgageChoice. Or, call 13 MORTGAGE.
For further information or to arrange an interview, please contact:
Kristy Sheppard or Belinda Williamson
Mortgage Choice Corporate Affairs
(02) 8907 0502 / 0407 450 860 or (02) 8907 0472 / 0407 416 124