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Is loyalty to your bank costing you $35,000?
Shopping around can save investors upwards of $35,000 on their mortgage repayments, according to new market research.
Is loyalty to your bank costing you $35,000?
Shopping around can save investors upwards of $35,000 on their mortgage repayments, according to new market research.
Data from Finder suggests there is a 46-basis-point difference between the lowest rate in the market and the lowest rate from the major banks.
Armed with this information, savvy investors are saving $35,000 over the life of a mortgage if they shop around.
According Finder insights manager Graham Cooke, investors that are willing to shop around can now get sub-3 per cent variable home loans.
“Last month, a couple of lenders broke the mould with sub-3 per cent fixed loans. This month, we’re already seeing this extend in the variable home loan space with Reduce Home Loans leading the pack with a never-before-seen 2.89 per cent rate.
“The question on everyone’s lips now is, how low will lenders go? This latest rate cut shows smaller lenders are setting the benchmark with rates that start with a ‘2',” said Mr Cooke.
Aussies willing to break up with the big 4
According to comparison site Finder, there has been a surge in Australians trying to leave their fixed loans, with a 408 per cent increase in those seeking more information about fixed rate home loan break costs.
Furthermore, Australians are searching for better value with a 313 per cent uptick in variable rate home loans over the same period.
Following the royal commission into the finance sector, borrowers are becoming increasingly likely to leave the big four banks.
By the numbers:
- The new average standard variable rate for the big four banks is 4.94 per cent
- The new average lowest variable rate for the big four banks is 3.42 per cent
- The lowest variable rate on market is 2.89 per cent (Reduce Home Loans)
- The lowest variable rate of the big four banks is 3.35 per cent (NAB, CBA)
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