Money Talks: It's Time To Shop Around

Lender loyalty is no longer

Lenders deciding to raise home loan interest rates by up to 0.45

percentage points in December has disheartened and outraged many borrowers.

With some hikes almost twice that of the Reserve Bank of Australia’s

official increase of 0.25 percentage points, existing borrowers

and those looking to take out a loan should consider themselves

warned - it is important to monitor your lender.

Loyalty aside, all borrowers should take the time now

to assess the likelihood of their lender making similar

moves in future and determine whether shopping around for a new loan

or lender may save them time and money in the long run.

A regular home loan health check is a great way to see

what other products or lenders are available.

A reputable mortgage broker can help compare a loan’s existing interest rate,loan features and flexibility to other products in the market.

It may be that a better rate exists with another lender

or that you may be able to negotiate a new rate with your

current lender. Keep in mind that since taking out the loan

your lifestyle and financial circumstances may have changed

so it may not offer all you need. Or your loan may offer too much

that you don’t use yet are paying for.

Keep in mind switching to a new loan or lender often incurs costs

such as break fees when a borrower exits a fixed loan period,

administration charges, and your new lender could charge

account keeping fees or set-up costs.

All in all, it can’t hurt looking at your options and window shopping

before making a decision. Talk to your local Mortgage Choice

mortgage broker in Sutherland about your new loan options.

Call us on 02 9521 161 or visit:

at Sutherland