There’s a price war going on as the major banks aggressively cut deals on rates and fees to win new lending business and shut down the competition from second-tier lenders.
And they are winning hands down maintaining their strangle hold on the mortgage market – with new research showing the major banks now account for more than 90 per cent of the market, compared with 60 per cent only four years ago.
What does it mean for you? Depending on your level of borrowing and income it’s currently possible to get variable rate loans from as low as 6.75%!!
Now it’s not often economists get it right but last month Westpac’s chief economist Bill Evans went against the grain and forecast a series of future RBA interest rate cuts. Now it seems the other lenders agree, with the majority of them slashing as much as .60% off their fixed rate products in the last 7 days – as an example you can now get 3 year fixed rates from as low as 6.59%!!
In addition to cheap rates some lenders are also promoting incentives to bring your business to them with one bank offering as much as $1,000 towards your switching costs, while others are waiving their entire application fees.
A word of warning to borrowers thinking of switching, remember the ban on exit fees applies only to new home loans taken out after July 1 [although some loans already don’t have them and some lenders have made the ban retrospective] so we do need to factor in these possible costs when determining whether switching lenders is right for you.
Remember your bank/lender is not going to ring you to say you can get a better deal down the road at their competitor – that’s what we’re here for! Give us a call or send us an email and we’ll do all the hard work for you and make sure you get the best possible deal in today’s highly competitive market.
As you take a moment to read this month’s news, remember Urbantech is always as close as your phone!
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