Chronicle Article May 2015 – Shop Around For a Better Deal

Shop around for a better deal: Broker.

A Toowoomba mortgage broker has advised clients who are unhappy about their current interest rate to shop around for a better deal.

The Reserve Bank recently dropped interest rates by .25%, with some lenders passing on the full rate cut, while others passed on .2%.

Brad Spanner, director of Top of the Range Home Loans, said home-owners should seriously consider moving their mortgage if their lender’s rates are too high.

"Don’t accept it," Mr Spanner said.

"There are some great rates and campaigns at the moment, so shop around and see what is out there. Vote with your feet! Take your business elsewhere."

Mr Spanner said in the 13 years he has been a broker he has not seen the home loan market as competitive as it is now.

"Some of the lenders really want your business and they are either dropping interest rates or using cash rebates to entice you to refinance."

"You can save yourself thousands of dollars a year by refinancing. There may be some costs to get out of your current home loan, but you need to weigh that up against the potential benefit of having a cheaper rate and maybe no monthly fees for the term of your loan."

Mr Spanner said home-owners need to be aware of the rate they are currently on.

"It’s amazing that a lot of people would not have a clue what interest rate they are paying. They have a direct debit that comes out weekly to pay the home loan and they don’t concern themselves with the rate."

"When rates are this low, they need to be more pro-active and see if they can get a better deal."

For more information, contact Brad Spanner on 0439 743 438.