With snazzy new advertising campaigns in hand, several lenders are bending over themselves to tell their customers they care. But some of the gloss started to come off their advertising campaigns when they lifted their home loan interest rates ABOVE the recent Reserve Bank cash rate increases.
ANZ lifted their rate on a standard variable mortgage by 0.35 percentage points, CBA increased its mortgage rates by 37 basis points, and Westpac went up 45 basis points. Only NAB kept their rate rise to the RBA's 25 basis points.
The rate increases seem to be starting to affect the market with the number of total home loans taken out in November dropping by 1.6 per cent compared with October, according to the ABS.
If you're thinking about moving into the market, shopping around for the home loan that's best for you is critical. The internet is a good place to start, so you can compare and contrast what's out there. Have a look at www.ratecity.com.au and www.mozo.com.au for example.
If you have a home loan already, don't forget you can go back to your lender and try to re-negotiate a better deal. It doesn't hurt to ask, and by switching to, say, a professional package, you could be better off. Keep in mind there may be costs associated with changing lenders or products, though, so make sure you get a thorough understanding of what those might be, and work out if you will end up ahead.
Your local mortgage broker can also help you find a home loan that's suitable for your circumstances – not just the best rate – by looking at all the fees and charges associated with taking out a new home loan as well as features such as redraw facilities and offset accounts.
Anyone talked to their lender recently to renegotiate their home loan?