If you’ve got a home loan and you’re looking ahead to many, many years of making hefty repayments, it’s only natural to look around for a better deal. Countless Australians are wondering right now whether it’s a good time to refinance.
How do you know if now is the right time?
It depends on the lending climate you’re in. Are interest rates increasing or decreasing? What sort of offers can you find if you shop around?
Currently, we’re seeing banks cut rates to make new loans more attractive. If you’re keeping an eye on this trend, you may be able to find just the right offer that makes a refinance worth your while.
The banks are encouraging new loans
For homeowners unhappy with their mortgage repayments and looking for a better deal, it’s important to watch the market constantly and look for new developments. For example, The Australian Financial Review recently reported that banks have begun cutting interest rates to encourage Australians to refinance.
Commonwealth Bank of Australia, for one, has made moves to target fixed-rate investor loans, a key market segment despite recently regulatory changes. By offering low rates and $1,250 rebates for investment and owner-occupier loans, CommBank is hopeful it can get more people to refinance. It’s expected that others will follow in CommBank’s footsteps, vying for the business of Australia’s many residential borrowers.
Shopping for the best deal possible
You can’t get the complete outlook on the home loan market simply by looking at what major banks like CommBank are doing, however. YourMortgage found that small and mid-tier lenders have been gaining ground recently. Mark Hewitt, general manager of sales and operations at Australian Finance Group, said that non-major lenders now account for 43.2 per cent of the total market.
We can guide the way
To find the right low-interest rate loans for you, you’ll need someone to do the shopping for you. That’s where we come in, we have connections to all sorts of lenders across Australia and our team of loan specialist can help you find the right offer for your situation. Contact us today to find out more.