Have you been reading about the mortgage wars? Competition between the banks is intensifying with some of the major lenders dropping their advertised variable home loan rates to as low as 4.65%, and 5 year fixed rates under 5%!
Ex-reserve bank governor Bernie Fraser has been one of the most vocal consumer advocates in the space, urging mortgage holders to ask for an interest rate with a “4” in front and take advantage of unprecedented discounting by lenders.
Mr Fraser believes low international interest rates had eased some of the pressure on costs for the main lenders. “It’s appropriate that they should be reflecting that in their interest rates independent of whatever the Reserve Bank will be doing,” Mr Fraser said.
“Existing customers can find a cheap variable rate at another bank and usually their own bank will say, OK, we’ll match it. I think there’s a lot of that going on.”
- Variable rate: From 4.65%
- 1 year fixed: From 4.59%
- 2 year fixed: From 4.67%
- 3 year fixed: From 4.69%
- 4 year fixed: From 4.99%
- 5 year fixed: From 4.99%
We have even found this with our own customers, in some cases negotiating rate discounts as high as 0.50% with their existing lenders as they try to retain business and stop the loans refinancing to other banks.
And in the cases the banks will not offer additional discounts? That’s fine, there are also lenders out there offering rebates on residential loans up to $1,250 to refinance to their bank, or up to $40,000 on commercial loans to cover switching and refinance costs.
So want to know if you’re paying too much? Take the 60 second Discovery Finance Home loan health check – contact the team on 1300 88 73 28 and we will tell you within 60 seconds if you can save some money, or renegotiate with your existing bank.