In the last 6 months we’ve seen the Reserve Bank of Australia (RBA) increase the cash rate from a record-low 0.10% to 2.85%, and it hasn’t taken long for most lenders to pass those rate increases on to customers.
Unfortunately, the RBA has warned that more rate hikes are on the way, which might have left you feeling at your lender’s mercy.
But there are ways you can make yourself feel more in control, including by doing what thousands of people on the mid-north coast have already done: refinancing by finding a better loan.
So why the big increase in refinancing?
Lenders now, more than ever, need to attract and retain borrowers.
So just because rates are going up, doesn’t mean you can’t scope out a better deal – especially if you have a decent amount of equity and a strong track record of meeting your mortgage repayments.
If that sounds like you: you’re a good customer. And lenders want good customers.
The other big reason for the recent surge in refinancing is that smaller lenders are stealing more and more borrowers away from the major banks with super-competitive rates.
In fact, in NSW, Victoria, Queensland and Western Australia combined, the major banks and their subsidiaries had a net loss of more than 5,000 borrowers to non-major lenders, according to PEXA.
Competition is fierce!
Why find a better loan now?
The amount of loans being written by brokers continues to grow.
In fact, brokers are currently writing 70% of all new home loans in the country – the biggest market share ever.
And as you know, brokers are loyal to you, not to any particular lender.
That means that if we think you can get a better deal elsewhere, we’ll encourage and help you to do so – not hope that you’ll stay put on your current rate.
And even if you don’t want to refinance with another lender, there’s always the option of asking your current bank to review your rate (and indicating that you’re prepared to refinance if they don’t come to the table).
So if you’d like to find out more about what options are available to you, get in touch with us today – we’d love to help out.
