Borrow
Is it time to get a better rate?
Mortgage-holders are being advised to take advantage of record-low interest rates and refinance if they haven’t already done so.
Is it time to get a better rate?
Mortgage-holders are being advised to take advantage of record-low interest rates and refinance if they haven’t already done so.
New research by RateCity has found that 43 per cent of Australian mortgage-holders are looking to refinance to a better rate, taking advantage of a record-low cash rate.
By comparison, a survey conducted by RateCity in 2018 revealed that 19 per cent of borrowers were looking to refinance, following the banking royal commission. That’s more than double in just two years.
Sally Tindall, research director at RateCity, highlighted that mortgage-holders are no longer tolerating overpaying for their mortgage.
“The loyalty tax gets worse the longer you stick with your bank.
“It’s taken a pandemic to get people to shift their mindset, but hopefully we’ll come out of it more budget-conscious and less complacent towards our mortgages,” she said.
Ms Tindall highlighted that the large financial institutions are willing to fight for consumers, meaning mortgage-holders can take advantage.
“The banks are pulling out all the stops, too, putting some of the biggest cashback offers and rock-bottom rates on the table and adding more flexibility on fixed-rate loans to attract new business – and it is working.
“The best way you can get a rate cut is to turn yourself into a new customer and switch. If you aren’t in a position to refinance, pick up the phone and try some old-fashioned haggling with your bank,” she said.
How much can a mortgage-holder save?
According to RateCity’s analysis of RBA data, existing owner-occupiers are paying over 1 per cent more than the lowest variable rate in the market.
If they switched to the lowest ongoing variable rate, that’s a saving of $2,805 in the first year, and $19,235 over five years, including switching costs, on the typical $400,000 loan.
This is based on an owner-occupier who switched five years into a 30-year loan.
About the author
About the author
Loans
‘Most Australians are through the worst’ as mortgage repayments resume
In a positive sign for the Australian economy, nearly 7 in 10 Australians who paused payments due to the COVID-19 pandemic have resumed repaying their mortgages, new figures have shown. ...Read more
Loans
Non-majors announce rate cuts
A number of non-major lenders have announced that they will pass on the full RBA rate cut to all existing variable rate home loan borrowers. ...Read more
Loans
Big 4 cut interest rates
Westpac, CBA, NAB and ANZ have all reduced their fixed rate home loans and some business loans following the Reserve Bank’s reduction of the official cash rate. ...Read more
Loans
What the RBA’s rate cut means for you
The RBA has slashed the official rate cut to a new record low of 0.10 per cent, but what does that mean for you? ...Read more
Loans
Banks slash rates for new customers – but will the RBA follow?
Lenders are continuing to price in a rate reduction from the Reserve Bank, according to new research. ...Read more
Loans
Are Australian mortgages held together by government support?
The response by the banks and the government to the COVID-19 pandemic has seen mortgage stress fall to a near record low, but dangers remain when support is withdrawn, consumer research has found. ...Read more
Loans
Open for business: Banks continue to lend to small businesses
Credit is continuing to flow to small and medium-sized businesses, with $41 billion in new loans approved since February. ...Read more
Loans
What does it take to make investors switch loans?
Savvy investors are looking to take advantage of record-low interest rates and are willing to switch loans even for minor reductions in rates, research has revealed. ...Read more
Loans
‘Most Australians are through the worst’ as mortgage repayments resume
In a positive sign for the Australian economy, nearly 7 in 10 Australians who paused payments due to the COVID-19 pandemic have resumed repaying their mortgages, new figures have shown. ...Read more
Loans
Non-majors announce rate cuts
A number of non-major lenders have announced that they will pass on the full RBA rate cut to all existing variable rate home loan borrowers. ...Read more
Loans
Big 4 cut interest rates
Westpac, CBA, NAB and ANZ have all reduced their fixed rate home loans and some business loans following the Reserve Bank’s reduction of the official cash rate. ...Read more
Loans
What the RBA’s rate cut means for you
The RBA has slashed the official rate cut to a new record low of 0.10 per cent, but what does that mean for you? ...Read more
Loans
Banks slash rates for new customers – but will the RBA follow?
Lenders are continuing to price in a rate reduction from the Reserve Bank, according to new research. ...Read more
Loans
Are Australian mortgages held together by government support?
The response by the banks and the government to the COVID-19 pandemic has seen mortgage stress fall to a near record low, but dangers remain when support is withdrawn, consumer research has found. ...Read more
Loans
Open for business: Banks continue to lend to small businesses
Credit is continuing to flow to small and medium-sized businesses, with $41 billion in new loans approved since February. ...Read more
Loans
What does it take to make investors switch loans?
Savvy investors are looking to take advantage of record-low interest rates and are willing to switch loans even for minor reductions in rates, research has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
