You have all heard the phrase, but “what” do I hear you ask, “does that have to do with Mortgage Broking?”.
The answer is simple. INTEREST RATES!
I have recently blogged about the changes to the Investment Home Loan market, but if you have missed the recent updates, essentially lenders now have a diminished appetite for investment home loans. To ease demand, they have increased interest rates and tightened their policies.
So that’s the poison.
Now here’s the meat…
The good news from this, is that lenders are now even more aggressive in winning their share of the owner occupied market. They are particularly hungry to get more of the 80% and below LVR (loan-to-value ratio) business, and we now have a number of lenders who have reduced the interest rates on these loans to below 4%. We expect other lenders may follow suit. Not only this, several lenders are also offering ‘cash back’ and ‘rebate’ deals of up to $1,500 to win your business.
So here’s some advice if you haven’t recently reviewed your current home loan interest rate, especially if you took out your loan more than a couple of years ago.
Do the following calculations:
1. Estimate what you believe your house is worth. (*Refer to my special offer below)
2. Work out your loan balance as a percentage of the value. If it’s 80% or less, proceed to step 3.
3. Look at your current interest rate.
If you got to step 3 and your interest rate is not in the very low 4% range, then you need to review your loan because you are paying your lender surplus interest that could be better in your back pocket.
As a Mortgage Adviser I specialise in helping clients analyse their current loan arrangements and look for opportunities to save them money. If you’d like a cost and obligation free review of your current loan/s, then I’d love to hear from you.
*Special Offer: if you would like a FREE Property Profile Report for your home (valued at $39.50), please shoot me an email to email@example.com. This report will provide an estimated value, including comparable properties for sale, recently sold and for rent and suburb statistics to give a complete view of your property.
Jason Thomson | Mortgage Adviser and Finance Broker | Smartline Cairns