Lenders Offer Sweeteners for Home Loans
This month, a number of financial institutions and lenders are offering promotional extras to those who switch to having their home loan with them, including such items as $1,000 cashback offers and $500 gift cards.
However, such promotional deals should be taken up only after careful consideration and calculation of numbers. In the event that the interest rate is higher on a new loan than an existing one, thousands of dollars more could be paid out over the duration of the loan.
Loans.com.au offers variable rate home loans starting from 4.55%. Finder.com.au showed that competition for such a low rate is on the increase.
Following the Reserve Bank’s most recent decision to further cut rates, all four of the major Australian banks passed on the full 0.25% rate cut to customers. Westpac took this a little further, cutting its rate by 0.28%.
Those looking for a mortgage product have the opportunity to save thousands of dollars by doing their research and comparing offerings to secure a cheaper home loan. Sometimes it is not even necessary for a customer to switch to another lender, as their existing provider may match a lower rate offered elsewhere.