The power that borrowers once had to play lender against each other may have been diminished by the recent credit crisis but it has not been lost forever. In fact, there is no better time than now to negotiate on your mortgage.
The first six months of the year saw the spread of interest rates widen across bank and non-bank products, as lenders began to raise their rates independent of the Reserve Bank of Australia.
However, as inflationary pressures stabilise and the interest rate environment begins to settle, competitive lending is beginning to show signs of life.
“Competition within the mortgage market appears to have resumed,” explains Michael Lee, consumer services, Mates Rates Mortgages. “The good news for borrowers is the high cost of wholesale money, which triggered rate rises independent of the Reserve Bank, has started to ease. This means cost driven pressure for lenders to move independent of the RBA should also reduce.”
To read more about negotiating on your mortgage deal, check this month’s issue of Your Mortgage on sale throughout the month of August.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan