February 13, 2017
With the first quarter of 2017 possibly seeing more out of cycle rate movements than in previous years, borrowers must start taking more responsibility for their situation by taking the onus on themselves to ensure their home loan rate is in the competitive band, says www.refinancing.com.au
Spokesperson for www.refinancing.com.au, Peter Andronicos, says as lenders jockey to improve margin on existing customer portfolios, while still attracting new ones, borrowers should be keeping a close eye on rates, not just around official interest rate announcements, but between rate cycles as well.
He says: ”It is a simple process to go online and compare rates as the developing environment will continue to offer opportunities for people looking to either just save money, or find a more suitable loan structure for their circumstances.”
Andronicos says in the year ahead borrowers should really be looking to reap the benefits of a robust mortgage market, which offers wider product choice, more concentrated levels of customer service and clearer segmentation across the lending sector.
”Additionally, with mortgage brokers also now responsible for arranging more than fifty percent of loans, with that number set to climb further, it makes the process of arranging a new mortgage, or reviewing a mortgage much simpler. We have already seen a perceptible shift in consumer behaviour,” says Andronicos.
”The likelihood is if you have had your loan for more than two years and have not paid particular attention to your loan statements, you will be surprised at what is now available to you,” he adds.
Andronicos says now is the time for borrowers to look at what they want from their mortgage to really capitalise on the competitive advantages of the current landscape by doing the following:
- Find out what your rate is actually costing you. How does your existing rate compare to what else is out there on the market? With so many rate movements out of the official rate cycle, find out what your rate may actually be costing you. And don’t just look at the advertised standard variable rates of lenders, as brokers can often get a better rate for you.
- Time to fix? Is it time to investigate a fixed rate loan option? Fixed rates on one, two, three and five year loans have moved significantly over the last few months. Fixing all or part of your loan can give you some certainty if you’re concerned about managing your finances for what’s ahead.
- Plan ahead and change your loan to suit. What are your plans for the next 3-5 years of your life? Do you need a different loan type and structure to support your financial plans?
”Going online and getting a simple report which benchmarks your current loan against others can take ten minutes. From there a broker can assist in answering all the questions you have to narrow down all the choices, once they understand what your plans are. In combination, this small investment of your time gives a specialist all the information they need to go in to bat for you,” says Andronicos.
”Either way you decide to approach it, it is an effective and no-obligation way to find out if and how you can improve your financial situation,” he concluded.
Written by Refinancing.com.au
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