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Competition heating up in mortgage market

2/12/2010

The home lending market is hotting up and buyers are advised to go hunting for the best deal to meet their needs – but be warned, you need to know where to look.

The good news for home buyers is that second tier lenders are coming back into the market and are prepared to offer attractive deals to quickly build their market share again, according to Smartline Personal Mortgage Advisers.

Equally, Smartline Managing Director Mr Chris Acret says the four major banks are keen to maintain their customer base and may be prepared to “sharpen their pencil” to keep your custom.

“Companies such as Bendigo Adelaide Bank, Macquarie, ING and the credit unions have all started to more aggressively push back into the home lending market in recent months, following their pull back as a result of the GFC,” Mr Acret said.

“As a result, they are offering competitive interest rates, particularly on fixed loans, and are prepared to lend a higher proportion of the property’s value which is attractive to first home buyers struggling to get their deposit together.

“The packaging up of several banking products with the home loan, low introductory offers, and reducing or even waiving fees are all carrots being used to secure your business and the banks are often prepared to match them.”

However, these good deals generally aren’t promoted widely to borrowers, with many unaware of the competitive products on offer.

“Many of these deals aren’t being promoted on their TV ads or in their full-page newspaper ads or even in the windows of their branches,” Mr Acret said.

“It’s generally only when you start talking with the lenders that you gain an insight into some of the deals available and, in many instances, the lenders are choosing to make these offers only available through mortgage advisers.”

Following the interest rate rises of early November, all of these incentives are worth investigating if it could see you with a home loan that saves you money, provides greater flexibility or has more features.

For first home buyers, the ability to be able to borrow 95% – rather than the 90% which has generally been the maximum as a result of the GFC – could also see them in their own home much earlier.

“Things are certainly hotting up in the mortgage market and it’s great for consumers that there are more lenders prepared to work hard for your business,” Mr Acret said.

“However, you have to know where to look and seeking the assistance of a quality mortgage adviser should ensure you get a home loan that suits your personal circumstances.”

As always, talk to your Smartline Personal Mortgage Adviser for more information.

 

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