Interest rates have been consistently rising over the past year with more expected in the foreseeable future. If you have not reviewed your mortgage interest rate and product recently then you need to stop what you are doing right now and make sure you are not paying more than you need to. Here’s why.

2023 – The Year of the Refinance

If the first quarter of this year is anything to go by then we are surely in the Year of the Refinance. We’ve been helping a huge number of our clients mitigate rising interest rates by getting them into great products with great rates that come with great savings. You could be doing yourself and your finances a disservice by not availing yourself of a home loan review and potentially save thousands by refinancing.

Competition is fierce, cashbacks are aplenty

Just because rates have risen, it doesn’t mean banks don’t want your business. In fact, nothing could be further from the truth. There are slew of lenders offering cashback incentives to win your business, some that run in the thousands of dollars. These rebates will not only cover the cost of moving but can be a nice bonus as a cherry on top.

You could be paying a loyalty tax to your lender

There are many lenders who offer a more competitive acquisition rate to lure new customers than what they give their existing loyal customers who request an interest rate discount. Don’t get caught out paying more than you need to from being loyal or apathetic when it comes to your lender. In fact, many lenders rely on you not being plugged into your finances and settle for a less than market leading rate.

Lenders are changing their products

The past couple of years have seen banks move away from the home loan package offering, instead moving towards simple, low fee products. If you are on an old, outdated product that a lender no longer sells then the chances are your rate is not as sharp as it could be. A new look loan product may see the savings roll in and eliminate ongoing fees that you don’t need to pay.

Low fixed rate loans are expiring

Customers who fixed two or three years ago when the rates were seductively low are now starting to see these cheap rates they’ve benefitted from coming to an end. Making the transition from a home loan rate that has seen either a “one” or “two” in front of it to now rolling on to something that is in the fives or sixes can be very sobering. For those whom this is a reality it’s imperative to get on the front foot and secure a competitive new rate to avoid being a casualty of mortgage stress.

A home loan review with your mortgage broker is simple

There is no reason to be intimidated by the thought of doing a home loan review with your mortgage broker. To get started all we need is:

• Your current home loan interest rate
• Your current loan balance
• Your current loan limit

Email us a screenshot of your internet banking showing the required information and your mortgage broker can approach your lender as the first port of call to see what their best offer is.

Once we know what your lender will offer you we can then compare it with the market and see how it stacks up against the competition and you can decide what looks the most attractive.

In many cases an rate discount from your lender is applied within that day and you are good to go, or we can organize a simple product swap to get you on something more cost effective and suitable for your needs.

If you have not had your home loan reviewed by one of our mortgage brokers in the last year then there is a good chance you could be paying more than you need to. Contact us today and start saving now, there is no reason why you shouldn’t.