Do You Have the Right Loan Now - It is Smart to check

Posted by Simon Dehne on August 3, 2016 in Latest News with No Comments

As you have probably have now heard, the RBA has reduced the official cash rate to 1.5%

As we started to see yesterday, many of the banks started to pass on this rate reduction. However, as sometimes occur the banks use this as an opportunity to improve their lending margins. How do they do this, well they do not fully pass on the full rate reduction 0.25%.

The major banks have all passed on different rate reductions which adds to the confusion of what really is the best deal.

For example Westpac passed on 1.4% which on the surface seems very good compared to the other major lenders who all had lower reductions. However, you also need to know what there actual rate was before they provided these rate reductions. In fact from a rate perspective, Westpac has one of the most expensive variable rates of all the top 4 big banks.

Plus the rates they advertise are not the best rates you can get. Many of the banks offer cheaper rates based on many factors, loan size is one criteria, how much you are borrowing, the profession you are in and even the mortgage broker you use.

The tag line that I like to say is, would a bank tell you if there is a better deal elsewhere.

May I suggest if you are paying 4.5% or more, it is time to review your lending options. Now the only disclaimer I would put forward is you might be on a higher rate because of other factors. Again, letting a mortgage broker help find the right loan solution for you is a smart thing to do.

At Helpcompare, we have brokers who have access to over 40 plus lenders, they do the searching for you, they get paid by the banks and all brokers are now heavily regulated, so they must be transparent in why they are making a loan recommendation to you.

Take the time to see if you can find a better deal for you and your family by starting by doing a loan comparison using our loan comparison tool, but remember the rate reductions reported yesterday often do not take effect for many weeks.




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