Despite experiencing some of the lowest home loan rates in history, two in five mortgage holders have not switched providers in the last decade, according to a survey conducted late last year by finder.com.au.
Although most respondents cited being happy with their current lender as the main reason for not having switched, Australians are potentially wasting over $2.3 billion annually.
But the fact is, Aussies who are content with their current lender could be saving an average of $8,000 if they were to commit themselves to an alternate lender.
With a mortgage market more competitive than ever before, new discount offers being distributed daily and exit fees being banned back in 2012, it’s never been a better time for mortgage holders to consider and compare their options.
3 top tips to getting a better home loan rate:
1. Negotiate: Even if you’re content with your current provider, there’s always a better deal. And as the borrower, you have power. Dedicate an hour of your day to calling other providers and find out what deals are on offer. If you challenge your current provider to match the discount/deal/promotion offered by another, the chances are you’ll receive it.
2. Alternate: Jump online and see what else is available. We’re currently experiencing historically low repayment options, so be sure you’ve obtained one. Don’t let potential paperwork prevent you from saving thousands.
3. Consolidate: Refinance to a debt consolidation loan. This type of loan is a home loan you can refinance to which also lets you pay out your credit card and personal loans. Rather than pay off multiple different debts, combine all your debts into a single home loan repayment each month. Additionally, this means that all your debts are only charged at a home loan interest rate – which can be considerably lower than a credit card card or personal loan interest rate. Typically, interest rates on personal loans are over double that of home loan repayments, so combining the two will see you save substantially.