There’s never been a better time to shop around.
With rates dropping, now is the time to shop around and refinance for a better home loan, but it’s not all about interest rates. We at Finance Mutual Australia have a unique opportunity to help borrowers find the best product to suit your needs.
Rates have been dropped four times in the past year by the Reserve Bank of Australia. Banks, which had been raising interest rates previously, proceeded to cut back their rates. As this continues, we encourage all borrowers to take a look at their current home loans to see if they can get a better rate elsewhere. However, we understand this to be a time consuming pursuit. We at Finance Mutual Australia can save you the effort, time and stress, given our access to hundreds of home loan product options with a wide range of lenders and credit providers across Australia.
While we do advise borrowers to shop around for better deals on their home loans, we suggest you do so with caution. Grabbing a lower rate now could mean a greater struggle in the future when rates rise back to their previous level.
That’s why we do what we do here at Finance Mutual Australia, so we can help you understand the best options for your situation. With borrowers’ circumstances changing so much over time, we operate under the belief that there should be a regular review cycle in place to ensure your financial arrangements continue to meet your needs.
This is about more than just a rate and includes the features and benefits of your home loan arrangements. You might move to a new stage in your career and realise you would benefit from an offset account; you might be planning to grow your family and prefer the certainty of fixed repayments; or you may want to review the competitiveness of your interest rate.
We also see many of our clients refinance their loans to cash out equity for other life goals or consolidate unsecured debt. We understand that in life, people’s circumstances change, we pride ourselves on the regular contact that we maintain with our clients to ensure that we are keeping up with any life events and how they might impact their financing needs.
But what if rates continue to drop?
After four rate cuts, one could hope to bide their time and wait for another rate drop. This thought process certainly makes sense as its almost guaranteed that rates would continue to fall if economic conditions continue to worse.
However, we don’t suggest that you should expect the banks to pass on any further rate cuts to borrowers, as it becomes increasingly difficult for banks to balance their growing proportion of savings accounts (as people take their money out of the tumbling financial markets), which are already paying out an interest rate, with the costs of funding home loans and other loans.
Therefore, there’s never been a better time for borrowers to shop around for a better home loan, and we can greatly assist existing home loan borrowers to find that optimal deal.
There’s never been a better time for borrowers to shop around for a better home loan, and we are here to assist.
Contact us here if you are interested.
Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.
