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Saving Thousands On Your Home Loan

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Is this a good time to renegotiate your home loan plan – when the economy is sluggish?

In Australia, home buyers have never had a better time since time immemorial. Today, lenders offer variable home loans under 5% – a staggering low rate not seen since the 60s and the 70s.

For instance, a low rate of 4.39% is offered by Heritage Bank, said to be the lowest of 62 lenders with under 5% rates. Adidas Yeezy 350 Homme Boxer Calvin Klein Baratos Since last year, average home loan rates have been hanging in the 5% mark. Per data from Reserve Bank, the industry has not done this since 1970. Calvin Klein Ropa Interior Mujer The 5.95% average standard variable rate in October is said to be the lowest in five years.

According to Kirsty Lamont, director of Mozo.com.au, borrowers will have an early Christmas rates bonanza due to the fierce interest rate competition. Yeezy Boost 350 Pas Cher Boxer Calvin Klein Mujer Ms Lamont said that the industry has not seen lenders in stiff competition against the big four major banks and each other since before the financial crisis that hit the world. Adidas Yeezy Boost 350 France

The average variable home loan rate is 5.22% crunched from 551 loans from 79 lenders while the big four’s average standard variable rate is 5.38%. Calvin Klein Bañadores Hombre This kind of indicates that the big banks can’t seem to be picking up. Slip Calvin Klein Outlet Mozo.com.au calculates that a $300,000 loan could result to a yearly savings of $2,064 if the loan is switched from a big four bank to the lowest rate available from the lenders.

You can also read things to consider when taking a home loan here.

That could be enough for borrowers to consider the switch. But real estate experts warn that the dropping home loan rates indicate a weak economy and low demand. And as such, second-tier lenders are searching high and low to find borrowers.

For property investors, low rates are interpreted as an alarm bell that sounds a warning that rates are bound to increase in the future at a faster rate than property values. Calvin Klein Bañadores Hombre Hence, consumers are not advised to borrow more that they can afford to repay at a much higher rate. Adidas Yeezy 350 Femme

While the current situation presents a terrific opportunity, purchasers should remember that it’s a temporary thing and will not last forever. Property prices are not likely to grow always. And as rates are expected to increase in the long term, negotiating a fixed rate can provide certainty.

Some lenders advertise very low rates and borrowers should not take such rates at face value. Slip Calvin Klein Outlet With very low rates come terms and conditions that could potentially inflate the cost over the long term. Calvin Klein Ropa Interior Mujer Hence, borrowers should read the fine print in order to make sure that there are no costs hidden somewhere in the provisions.

It may be tempting to jump at the opportunity of having low rates from second-tier lenders but there is a chance you can negotiate for a revamped loan rate with your existing loan provider.

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