Home loan discounting has hit unprecedented levels, with banks cutting advertised rates by as much as 1.4 percentage points.
With competition between the lenders seriously heating up, the savings can be significant - borrowers could save thousands of dollars per year.
While the biggest discounts are still reserved for those taking out higher value loans with big deposits, according to a recent news.com.au article, it's not only the ‘big fish' who are being lured with rate cuts. A borrower looking to borrow $500,000 towards a $625,000 property can now get more than 1 percentage point off the standard variable rate. Just months ago, discounting the rate by more than 0.7 per cent for this type of loan was unheard of.
So how can you make sure you benefit from the great deals being offered?
Naturally it makes sense to shop around and make sure you are in the right position to benefit from the banks fighting it out for your business. This is where a Mortgage Choice broker can really add value, as they do all the legwork on your behalf to secure you a great deal.
Saving hard to get a good deposit can unlock some of the best deals. If you've got a deposit of at least 20% of the purchase price, you'll get a better rate. See our tips on saving for your deposit to work on increasing your amount.
Of course while it is clear that new borrowers can benefit from home loan discounts, what about those with an existing mortgage?
If you already have a home loan, it makes sense to check whether you still have a competitive deal, or whether you could save by refinancing elsewhere. Again, this is where a mortgage broker can provide valuable advice with a free home loan health check. If you find you can get a better deal, they'll do all the paperwork to help you switch and save.
Great deals are great news for borrowers, so talk to a Mortgage Choice broker today to see if you could access a discounted home loan rate.