scam-alert SAVVY customers refinancing their home loans or fixing their interest rates are at an all-time high but there’s concerns many complacent borrowers are getting ripped off by their lenders. New Australian Bureau of Statistics data found in December nearly 21,000 Australians refinanced their mortgages to score a better deal — the highest level reached since 2010.

But borrowers are being urged to take notice of their loans after multiple lenders this week made out-of-cycle rate increases to variable home loan deals including lenders Yellow Brick Road and Australian Unity. Find the best variable home loan deal Home Loan Experts Xavier Quenon said loyalty is costing Australian borrowers big by lenders “offering crazy discounts to new customers” and he encouraged them to look beyond having a mortgage with one of the big banks. “Anyone who purchased a property more than two years ago – and has not reviewed their mortgage – is paying too much in interest,’’ he said. “There’s big differences between rates as well, in particular with several banks and smaller lenders who are coming in with great offers below what the major lenders are offering their best clients. This is why we have launched our ‘Phantom rates challenge’. The cash rate is currently at a historical low and providers are offering among the lowest rates ever seen — some borrowers can potentially save thousands of dollars per year by making the switch to a better deal.” The Reserve Bank of Australia has kept the cash rate at a record low of two per cent since May last year and it’s not expected to move when they meet again next month. However lenders have regularly increased their rate with ‘out of cycle’ increases. Is your Home or investment loan too expensive and no longer in line with the market? Is it time for a review?

Leave a Comment

Your email address will not be published. Required fields are marked *