This month, the Reserve Bank of Australia (RBA) lowered Australia’s official cash rate to an all-time low 0.75%. Brisbane homeowners should ask their bank to pass on the full discount or vote with their feet and refinance their home loan.
Even a seemingly small decrease of 0.25% in the cash rate could result in you saving thousands of dollars on your home loan repayments. So, is your bank choosing to pass on the huge discount or keeping it for themselves?
In 2019, Brisbane homeowners have become accustomed to having an interest rate starting with a ‘3’. Now in October, many banks are offering reduced home loans for new customers at 2-point-something percent.
While it’s currently ‘paying’ to be a ‘new customer’, it’s a different story for existing customers who are currently missing out on the full 0.25% discount. In fact, just last week the ACCC announced an investigation into the practice.
But, there’s a silver lining, according to Loan Mate broker Samuel Park, “Savvy consumers should be asking their bank to lower their interest rate or vote with their feet”.
“As an existing customer, it can be devastating to hear that your loyalty goes unrewarded. Banks typically spend a lot of money trying to entice new customers to sign up, but often forget to look after their faithful customers.”
“The good news is that if your lender refuses to pass on the discount, then consumers should contact a mortgage broker who can review their situation and refinance them to a lender who puts their customers first.”
Mortgage brokers typically have access to over 25 lenders and can help you save money, plan for the future, or borrow additional funds for renovations. Currently, 6 out of 10 Australians choose to use a mortgage broker due to their superior customer service, wide range of lenders, and their no-cost-to-you fee structure.
At Loan Mate, we love helping Brisbane families save money every month on their home loan. We try to make it a fun, exciting and simple process – after all, who doesn’t love saving money?
If your bank isn’t passing on the full discount, please schedule an appointment with the team here. We’ll provide you with our honest opinion and if refinancing is the right move for you, we’ll handle everything from start to finish at no cost.