The lending market shifts constantly in terms of policies, trends and lender requirements. Your circumstances may now be different since you last reviewed your loan. These changes create a great opportunity to do a mortgage health check, and reassess your finances to determine if a loan restructure is right for you.
You might consider a loan restructure if:
– you want to consolidate several loans to save money on repayments
– you can afford to increase your repayments and want to reduce your loan term
– you want to borrow against the equity in your home to renovate or make another large purchase
– you want to fix all or part of your loan to lock in current low interest rates
– your current fixed rate is expiring
– you want to take advantage of competitive rates for new customers
– you want access to different loan features, such as the ability to make additional repayments and redraw, an offset account, or better digital and mobile banking features.
What’s happening in the market?
While the cash rate has remained steady for over two and a half years, already this year we are seeing a significant amount of interest rate movement from lenders – both up and down. Lenders who have changed their rates include Macquarie, ING, ANZ, Westpac, ME Bank, St George, Bank of Melbourne and NAB, among others.
Overall, we are seeing more rate cuts for fixed rates and more rate hikes for variable rates, although this varies from one lender to the next. There are also a number of very low rate offers and even cash-back incentives for new customers (for example, through Westpac and Pepper Money). Lenders have always competed for new customers; existing customers need to take advantage of this by keeping in regular contact with their broker!
We would love to find you a more competitive offer, either by negotiating with your current lender or by looking at our panel of over 25 lenders. Please give us a call if you have any questions at all.