There’s a battle going on out their in the finance world and it’s you they are after!
This week the Commonwealth Bank vowed to beat the home loan rates of its rival majors for the duration of the month. The bank has issued a guarantee that it will beat any advertised rate from competitors Westpac, NAB and ANZ.
[note: this offer excludes the major banks subsidiaries like BankSA and non-banks, which have some of the rates in the market]
This is not a gimmick, it’s real competition in action – the likes of which hasn’t been seen for some years!
Lenders are acting with almost a level of desperation – slashing rates, offering huge discounts, giving cash incentives and even increasing LVRs on loans.
Doesn’t it feel good to be wanted! Depending on your circumstances you can currently get variable rates from as low as 6.75% and 3 year fixed rates from 6.39%.
So what’s caused this perfect storm? There are two main factors at play – firstly, the property market has all but ground to a halt causing a substantial decrease in the number of transactions/sales and therefore a big reduction in new lending demand.
Secondly, thanks to the GFC people have switched from a consumption and spending mindset to a saving mindset. ‘The party is over’ so to speak and these days more people are focusing on spending less and paying down their loans.
This leaves only one option for the banks – increase their market share from the pool of existing loans. That is try and get you to move your current loans over to them from your existing lender by refinancing.
The take home message here is you have a real opportunity to save some money and you owe it to yourself to explore what’s on offer to see if you can get a better deal!
We are currently helping many clients to save money and most agree it is a great time to refinance and/or look at fixing all or part of your loans.
If you’re not sure whether you are on the best deal it’s simple, just give us a call. And if you’ve just come out of a fixed rate loan or your existing loans are more than 12 months old then you definitely need to contact us.
As you take a moment to read this month’s news, remember Urbantech is always as close as your phone!
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Finance Adelaide, Home Loans Adelaide