The bold decision this month by some lenders to move their home loan interest rates out of step with the Reserve Bank has signalled to borrowers that home loan interest rates could shift at any time, in any direction and by any amount. Borrowers need to be aware of this changed interest rate environment and should be prepared to switch to a better suited lender and/or loan product. Otherwise, they may risk paying more over the life of their loan.
The savings made by reviewing a loan can be significant. An analysis of our recent loan data shows we have saved our refinancing customers on average $10,000 each over five years*. Borrowers who want to investigate any savings that could be made on their own home loan, and who may not have the time or know-how to research the market themselves, can call on a home loan expert.
A professional mortgage broker provides borrowers with the latest home loan information on a wide range of lenders and loan products. It is a broker's job to be across changes in interest rates, new products and any special discounts that may be available to borrowers. When considering refinancing, our brokers will help borrowers to assess the overall costs versus benefits, taking into consideration not only home loan interest rates but also any upfront, ongoing and exit fees, loan features, lender service and accessibility, etc.
Now is the time for borrowers to make the right move and develop a much closer relationship with their local mortgage broker who will help them stay on top of the home loan market.
*Average savings from 368 customers who decided to refinance from Aug 2011 – Jan 2012.