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This is the big race for rates and millions of Australian mortgage customers may be left behind.
The variable interest rates of home loans move both ways, with lenders jostling each other, making it more important than ever to check your mortgage.
A comparative study of the Mozo.com.au comparison website revealed that more than a dozen small and medium-sized lenders increased their floating rates last month, similar to the large banks Westpac, ANZ and Commonwealth Bank.
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However, a handful of lenders have announced variable rate cuts, including HSBC, the online lender Tic Toc, and CommBank, which has lowered its basic variable-rate home loan product by one-quarter point to 3.89%.
Mozo's director, Kirsty Lamont, said the rate cuts indicated that competition was intensifying as the mortgage market cooled.
"You could be forgiven for thinking that lenders have yoyo on rates right now," she said.
"We're seeing some lenders making tactical offers to attract good buyers, usually homeowners with low loan-to-value ratios."
Lenders were striving to register with homeowners who had built at least 20% equity in their home, Lamont said.
"Check your loan-to-value ratio and, if it is 80% or lower, start comparing rates and ask for a better offer," she said.
Floating rate real estate loans
Ratecity.com.au's research director, Sally Tindall, said that a nationwide slowdown in mortgage growth was forcing many lenders to aggressively hunt for new business while others were expanding. their interest rates.
"The mortgage market is unique," she said.
Tindall said CommBank had lowered rates to allow new customers to pbad the door, but "their offer was only for new customers."
"This is the most important time to take stock of your home loan," she said.
Borrowers should check if their lender was offering a lower mortgage interest rate than new clients, Ms. Tindall said. "If it's inferior, call them and ask them to match them. If they do not match, start considering a refinance. "
Other lenders are finding new ways to provide extremely low mortgage rates.
RateCity facilitated a one-week contract between Home Loan Reduction and Getcreditscore.com.au to reduce the variable mortgage rate of 3.44% to 3.39% reduction for people with a rating excellent or very good credit.
Tindall said the idea came from Australia's new comprehensive credit reporting regime. "Finally, banks pbad on the whole story of people to credit agencies and they can now improve their credit score more proactively. Events like this are good for people with good credit.
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