3 April 2013

It’s time to refinance - 1300 Home Loan

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.

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* 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.