Forget the cash rate decision remember to health check your home loan

If you have a home loan, are you taking advantage of lender competition for customers too?


June 07, 2011

If you have a home loan, are you taking advantage of lender competition for customers too?

As are many Australians, Mortgage Choice is relieved to see the cash rate remain on hold at 4.75%, but it urges existing borrowers to still investigate their home loan alternatives.

Company spokesperson Kristy Sheppard said, “Not only is there a vast array of special offers and incentives floating around in today's marketplace but many lenders' retention departments are working at top speed. Competition to retain and attract customers is hot.”

“I recently heard a comment similar to ‘Think you're not a valuable customer? Try calling your bank to see what your mortgage discharge fees are.' That really does ring true.

“You never know if a better home loan deal is out there until you shop around. Consider the possible savings if you negotiate with your current lender or find a more affordable or suitable product from another.

“I wonder how many mortgage holders realise how much they may be able to reduce their interest and other fees simply by giving or getting themselves a home loan health check. A professional mortgage broker with a large lender panel can help with this.

“Borrowers should not refinance just for the sake of it but they should understand their options. 33% of Mortgage Choice's loan approvals nationally in May were for ongoing discount interest rate home loans. That gives you an idea of where the market's at.”

The following table outlines the monthly repayments for a $300,000 home loan with a 30-year term and a $500,000 home loan with a 30-year term, covering principal and interest and interest only repayments. Note the figures are rounded up to the nearest dollar and fees are not included.

Interest rate

Monthly repayments: P&I

Monthly repayments: IO

$300,000 loan

6.75%

$1,946

$1,688

7.0%

$1,996

$1,750

7.25%

$2,047

$1,813

7.5%

$2,098

$1,875

$500,000 loan

6.75%

$3,243

$2,813

7.0%

$3,327

$2,917

7.25%

$3,411

$3,021

7.5%

$3,496

$3,125

 


For further information or to arrange an interview, please contact:

Belinda Williamson      
Mortgage Choice Corporate Affairs     
(02) 8907 0472  or 0407 416 124
belinda.williamson@mortgagechoice.com.au


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