Lenders are offering new home loan promotions this mortgage season, and refinancers are set to be the winners.
Although auction clearance rates fell below 70% in the last three weeks (reaching 67% on October 3), the special deals being offered could keep Mortgage Season thriving, according to finder.com.au.
"Spring is the time of year when we see lenders come out with special offers to entice borrowers during the peak mortgage season. And this year is no exception, with 19 lenders offering special promotions, many of which are for refinancing
,” said Michelle Hutchinson, Money Expert for finder.com.au.
The refinanced home loans market makes up about 35% of all home loans written. In the last mortgage season alone, 52,845 home loans were refinanced, which is 2,393 more (a 5% increase) than the previous quarter.
To keep the market interested, lenders are cooking up various deals designed to target refinancers, such as up to $2,000 cash back per loan. ING Direct, NAB, St. George Bank, RAMS and ME Bank all have their own similar promos.
Moreover, Newcastle Permanent is the latest to join the promotions bandwagon. The lending institution is offering $2,000 to borrowers who refinance with them, with a minimum loan balance of $150,000.
Four other lenders are also offering a similar $2,000 cash back deal, while some present alternative incentives. NAB, for instance, is giving away 250,000 frequent flyer points for its new borrowers.
“It's a great time to look at refinancing and take advantage of the new offers during Mortgage Season. Lenders are hungry for new business and will also be competitive on interest rates
and fees if you make them an offer,” Hutchinson said.
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