3 April 2013
It’s time to refinance - 1300 Home Loan
A national survey has found that home owners refinancing to get
a better deal on their home loan has been the major source of
housing finance activity this year.
In a poll of its own 237 brokers, 1300HomeLoan found 59% said
refinancing had been the major source of inquiries this year. 29%
said most of their inquiries came from first home buyers, 6% said
investors and 6% self-employed borrowers.
To secure a two year fixed rate of 4.99% p.a.* get in
touch with a 1300 Home Loan broker today.
Managing director John Kolenda said it was a healthy development
to see more borrowers shopping around for a better home loan deal.
"Australians have traditionally been loyal to their banks but since
the global financial crisis the lending landscape has changed
dramatically and people are realising there can be a price to pay
for loyalty," he said.
He said that in the current highly competitive lending
environment there could be more than one per cent difference
between variable mortgage rates on offer and similar variations
with fixed rates. "Home owners on an average $400,000 mortgage can
save thousands of dollars a year if they can be bothered switching
lenders to get a better home loan deal, so it is encouraging to see
more borrowers looking to refinance," Mr Kolenda said.
Mr Kolenda said that borrowers were best advised to speak to a
professional about their home loan options and mortgage brokers had
more insight as to what was going on with the different lenders as
well as the structures for any fees and charges.
* WARNING: The above is based on
secured credit of $300,000 and a term of 30 years at 80% LVR as at
28/03/13. Comparison rate applicable to this example is 5.82% pa.
Different terms, fees or other loan amounts might result in a
different comparison rate. Costs such as redraw fees or early
repayment fees and cost savings such as fee waivers are not
included in the comparison rate but may influence the cost of the
loan. Rates are subject to change by financial institutions at any
time, it is advised that you seek professional financial advice to
confirm the rates applicable. We don't make any suggestion or
recommendation to you about a particular credit product. No
responsibility is taken for errors or omissions within and you
should check the terms and conditions of the loan contract for full
details and product features.