One of the primary ‘weapons’ banks utilise, is to take advantage of lazy borrowers.
Our interest rates have headed down over the last few months and the banks have passed on some but not all of the savings to you, much to the government’s ire. A decrease in the cash rate of 0.25% does not mean the banks’ costs reduce by the same amount. So, it is not realistic to expect the full decrease in the cash rate to be passed on.
There is a big ‘but’ coming…
Different lenders have different cost bases. That means some ‘non-major’ bank lenders have a massive cost advantage in this environment and therefore have an ability to offer you significantly lower rates. Just because your current lender didn’t pass on the full rate doesn’t mean other lenders don’t have a better deal.
This is why you can’t afford to be another ‘lazy borrower’ and play into their hands.
Every time the RBA changes interest rates it resets the market for the best deal on a mortgage. When you ‘set and forget’ your home loan, the bank pockets those extra profits.
The fact is ‘New-to-bank’ customers are offered rates significantly lower than existing customers. If your loan is 5 years old you are paying too much (no matter who your lender is).
If you want to find the best deal for yourself in the current market you basically need to go to every lender find out what their best deal for you is and then pick the best one. Unfortunately not all lenders deal directly with the public, not all loan officers are equally knowledgeable about the products their institution offers. So for all that work you might still miss out on the best deal.
Your best bet for getting the best possible loan is to get in touch on 03 9723 0522, and ask for Nic or Tom to arrange a no-cost, no-obligation mortgage review. As a result of one current review in progress a new-to-Integrity client will save over $8,000 per year in interest!
Nicholas Berry Credit Representative Number 472439 and Thomas Bailey Credit Representative Number 472440 are Credit Representatives of Integrity Finance (Aust) Pty Ltd – Australian Credit Licence 392184.
This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.