Why are more and more people seeking their new Home Loans via Mortgage Brokers rather than their Bank?
Listed below are some of the benefits many have discovered that may be appealing to you . . .
BROKER: Choose from 100’s of Home Loan options with dozens of Banks + Building Societies + Credit Unions + Non-Bank Lenders
BANK: Limited to the Home Loans offered by the one Bank
BROKER: Your Mortgage Specialist will negotiate with the Banks to achieve lower interest rates & fees on your behalf
BANK: Banks will only offer basic rates & nominal discounts unless the you are able to provide proof of “Other Bank Offers” & threaten to “Take your business elsewhere”
BROKER: Continue to have direct access with the same dedicated Mortgage Specialist before & after you take out a new Home Loan to ensure you can receive ongoing advice & assistance from the individual who knows your personal & financial circumstances
BANK: Once your Home Loan has commenced you will be referred by the bank manager to the bank’s websites & call centres for any ongoing service requirements
BROKER: Your Mortgage Specialist will conduct reviews of your Home Loan and will inform you “How to achieve lower interest rates” if other Banks are offering better deals
BANK: The Bank will not inform you if a competitor Bank has a superior loan product
BROKER: Is paid by the Bank not the client (i.e. Broker Commissions are NOT added on to your Home Loan)
BANK: Is paid by the Bank not the client (i.e. Bank Manager Salaries are NOT added on to your Home Loan)
MORTGAGE BROKER … WORKS for “YOU”
BANK MANAGER … WORKS for “the BANK”
The Reserve Bank Board has voted to retain the Official Cash Rate at the current record low 2.25% whilst they measure the impact of the previous rate cut on the Australian economy.
Economists were split with their predictions however most expect a further 0.25% rate reduction in March or April.
Now is a great time for Borrowers to use the record low interest rates to own their Home sooner.
Many Banks will automatically reduce your Home Loan repayments when Interest Rates fall.
TELL THE BANK “NO” !!!
By retaining your Home Loan repayments at their previous level or even better … increasing your repayments you will:
1. Pay off your Home Loan faster
2. Reduce your current + future interest costs
3. Create a “Buffer” which you may be able to redraw in the future if / when required
4. Own your Home sooner
Making your money work for you now whilst rates are low will save $$$ now and $$$$$$$$$$$$$$ in the future.
Westpac has confirmed it will be passing MORE than the Reserve Bank rate cut (RBA 0.25% p.a.) by reducing their Variable Interest Rate by 0.28% p.a.
However … don’t be too quick to heap praise on the “Big Red W” as Westpac’s Variable Interest Rate was higher than the other major banks prior to the rate drop.
The Reserve Bank Board has voted to reduce the Official Cash Rate by 0.25% to 2.25%.
This is the first change to the Cash Rate since August 2013 which the RBA hopes will stimulate the Australian Economy which is currently growing slowing than RBA expectations.
Senior Economists of several major banks are predicting a further rate cut in March which is great news for Australian families and the Business Sector.
The Senior Economists of Australia’s major banks appear to be divided in their predictions relating to whether the Reserve Bank will reduce interest rates when the RBA Board meets on Tuesday.
The differences in predictions relate to the latest report from the Australian Bureau of Statistics confirming significant falls in the price of fuel have reduced the quarterly CPI growth to only 0.2% resulting in a lower than expected Inflation Rate of 1.7% for the year.
As a result of the low inflation figures several of the Banks are predicting the Official Cash Rate will remain at the current level of 2.5% until late 2015 whilst their competitors are anticipating the RBA will reduce rates by 0.25% p.a. in February followed up by a 2nd rate drop in March.
The great news for borrowers is that no-one is predicting any rises in the near future to the record low interest rates we are enjoying today.
The Reserve Bank Governor, Glenn Stevens, has provided great confidence to Borrowers & Home Buyers.
In his speech at the Committee for Economic Development of Australia dinner, Mr Stevens hinted that low Interest Rates are here to stay for some time … possibly years.
The RBA Governor also challenged the Federal Government to provide greater assistance to Small Business to encourage more opportunities in this sector which will in turn create jobs and reduce unemployment.
After 16 consecutive months of record low Interest Rates why do some Banks continue to charge their loyal customers higher Interest Rates ???
ANSWER: Because these customers didn’t say “NO” !!!
Just say “NO” and save your hard earned dollars.
If your Bank doesn’t listen … Contact DPF Mortgage Specialists
LOWEST RATE IN 139 YEARS !!!
Yet another Small Bank is leading the way with record low Home Loan Interest Rate of 3.99% p.a.
Ooooh … The Big 4 won’t be happy
BORROWERS … ASK YOUR BANK TO MATCH THIS RATE
Reserve Bank … We’re not changing rates anytime soon
Great News for Borrowers
The RBA Governor (Glenn Stevens) reported to the House Economics Committee in Brisbane yesterday (20/8/2014) that the RBA “hadn’t thought about raising rates recently”
Mr Stevens also stated that “The board has been mindful of allowing time for measures already taken to have their effects, and of the very considerable limitations for monetary policy in fine-tuning economic outcomes over short periods. It has also seen some value, in the present circumstances, in maintaining a sense of steadiness and stability”.