March 01, 2011
The 2% of recent first homeowners* who say any interest rate rise would result in them considering selling up will be elated the Reserve Bank has decided to keep the cash rate on hold at 4.75% for a fourth successive month. So will the 8% already considering it because they can't afford repayments.
Hopefully by the time the next rate rise eventuates these inexperienced mortgage holders will have cushioned their loan account with extra funds, as do almost two thirds (63%) of their counterparts.
Perhaps more importantly right now, they should be scouring the market for a better deal.
Australia's largest independently-owned mortgage broker, Mortgage Choice believes every borrower should be taking advantage of today's competitive mortgage market by shopping around to make sure they are in the best position possible.
Company spokesperson Kristy Sheppard said, "With lender competition increasing noticeably every week, anyone who hasn't checked their current home loan matches up with or betters what's available these days is doing themselves a serious disservice."
"Banks and other lenders are falling over each other with interest rate discounts, fee cuts, maximum loan to value ratio increases and other special offers. Several have signaled their intention to grow their share of the home loan market. Borrowers should get proactive and take advantage of this.
"Checking the market is as easy as calling a professional and experienced mortgage broker who has access to a wide range of quality lenders both large and small.
"There are still home loans in the market with interest rates below 7%. There are no fee loans. There are lenders who will pay your exit fee if you move, depending on which lender you're currently with. There are lenders who require only a 5% deposit… Borrowers need to ask: 'Am I taking advantage of today's market by trying secure myself the best deal?'"
Borrowers who want to further explore the ins and outs of interest rates as they discover the new Australian mortgage landscape can visit Mortgage Choice's new infographic: www.mortgagechoice.com.au/tips-and-checklists/interest-rates-infographics.aspx
To contact a Mortgage Choice broker call 13 MORTGAGE. Or, visit MortgageChoice.com.au, Facebook.com/MortgageChoice or Twitter.com/MortgageChoice.
* The Mortgage Choice 2011 Recent First Homeowner Survey of 803 Australians who had bought their first home in the past two years ran online from 8 to 17 February 2011.
For further information or to arrange an interview, please contact:
Belinda Williamson
Mortgage Choice
(02) 8907 0472
belinda.williamson@mortgagechoice.com.au
