The Australian banking environment has changed substantially over recent years. There has been an unarguable tightening in credit, which became even more restrictive following the Banking Royal Commission, along with a potentially related slowdown of housing lending during 2019.
As a result, many lenders have found that their sales activity and lending portfolio growth has subsided – meaning that the competition for new good quality loan opportunities is as fierce as we have seen in recent times.
This has led to an ever-growing number of lenders offering home loans borrowers a ‘refinance cash back’ incentive to try to attract new business and encourage borrowers to refinance their home loans.
These incentives can range from anywhere from $1,200 to $4,000 for an individual loan, with several lenders multiplying these incentives for additional properties refinanced.
This is great news for borrowers looking to negotiate a better deal, but there’s even more good news!
Making these refinance cash back offers even better is the fact that we are enjoying historically low interest rates, and some of the base fixed rates being offered are currently well below 3.00% p.a. So aggressive is some of the fixed interest rates on offer, that it is now becoming apparent that some lenders are offering fixed interest rates that are up to 0.40% below the same lenders variable interest rates.
There are certainly some restrictions with fixed interest rates that should be discussed with your lender or Mortgage Broker – but at these levels, fixed home loan interest rates are certainly worth considering as part of a broader interest rate strategy.
Given all of the above the message to current mortgage holders is simple, if you haven’t reviewed your current home loans in the last 2 years – it is recommended that you put speaking to your local Mortgage Broker at the top of your priority list. Doing so could save you money and you may even receive a cash bonus should you choose to change lenders!
Please don’t hesitate to contact me via either firstname.lastname@example.org or on 0477 778 330 should you want to compare your current home loan with what else is available in the market