Are you getting the best deal possible from your lender?
With the Reserve Bank of Australia (RBA) yesterday leaving the cash rate unchanged at 2.50%, chances are, you might just be able to squeeze your lender a little tighter.
Typically interest rates move when the cash rates move, but after five consecutive months of record low interest rates, some lenders are decreasing their rates outside of the RBA decisions.
If you’ve not recently talked to your lender about your current deal, then we’d highly recommend you do so.
Make no mistake. Competition for your business amongst lenders is fierce. It’s a borrowers market right now.
With some consumers taking full advantage of the low rates and squeezing their lenders for better deals – or talking by walking – hungry lenders have cottoned-on and are offering ‘come-to-us’ deals.
So, it may well be worth your while to talk to your favourite broker or find an online comparison site to see what’s on offer out there in lender-land.
For example, two of the big banks have lowered their fixed rates: Westpac and NAB both decreased their three year fixed package home loan by 0.05% to 5.14%.
Take advantage of this competitive environment and go get yourself a better deal. Or not, and wince yet again when banks announce their full year results and you realise you contributed more than was necessary.
We’re talking about a simple three-step dance:
- Compare lenders’ offerings
- Return to your current lender with an ultimatum
- And if they don’t come up with the goods, then talk with your walk and take your business elsewhere
It’s actually not that hard to switch lenders to ensure you are getting the best deal possible, on what is most likely your largest debt.