Rate Cuts

The Reserve Bank Board may have voted to retain the Official Cash Rate at the current 1.50% p.a. however, several banks have already increased their Variable Interest Rates, with more banks expected to announced their intention to do the same over the next few weeks.

The banks are blaming “the increasing costs of funds” however the reality is borrowers can still negotiate lower interest rates with their banks despite the bank’s belief that the majority of their customers will simply “cop it sweet”.

If your Home Loan Variable Interest Rate is currently (or soon will be) greater than 3.90% p.a. … CALL ME !!!

 Many of our clients have already taken advantage of our free advice & reduced their interest rates which has saved them $$$

 We are also pleased to confirm that over 90% of these DPF clients have achieved these savings without the need to refinance or change banks.

 Please remember … WE WORK FOR YOU … not the banks … so please call me if you’re not happy with the rate your bank is charging you.

Please be mindful when you receive your next Home Loan Statement to view the interest rate you are currently being charged. 

We are seeing a steady increase in the number of long term bank customers who are unknowingly being charged higher interest rates on their Home Loans. 

Each week we are assisting clients to strike back & achieving lower rates with the vast majority accomplishing this with a simple phone call. 

Last week one of our clients was shocked to learn how much their bank was overcharging them & absolutely thrilled when our Mortgage Specialist passed on an “Insider Tip” which saved them $3,959.00 per annum without having to refinance or change banks.

 Q: How much was our client charged to achieve this ?

 A: $NIL

 Please take a minute to jump onto your internet banking to check your latest statement. If your bank has targeted your Home Loan you could be paying thousands more than you need to.

 Please feel free to call or email and always remember … WE WORK FOR YOU … not the bank

Question:

Why are banks charging higher interest rates on Home Loans & Investment Property Loans to their loyal clients whilst offering lower interest rates to new customers ?

Answer:

1. The banks have discovered that loyal clients don’t tend to “Shop Around” when seeking a new Home Loan or Investment Property Loan & rather will simply contact their bank or visit their local branch manager. As a result the banks don’t need to provide the lowest interest rate to win this customer’s business.
2. The banks are aware that many of their loyal customers don’t look too closely at their current interest rate which appears on their Home Loan / Investment Property Loan statement.
3. The banks are also aware that many loyal customers will simply assume their bank is continuing to provide them with a competitive interest rate similar to that which they were offered when they first established their Home Loan / Investment Property Loan.
4. If the situation arises that a loyal client approaches their bank & requests a lower interest rate the bank believes a small discount will often be sufficient to satisfy this client.

Over the last 2 weeks alone our Mortgage Specialists have assisted 7 separate families who were not aware that the interest rates they were being charged on their Home Loans were 0.50% p.a. – 0.80% p.a. higher than the interest rates their banks were currently offering to new customers.

In dollar figures these higher interest rates cost each family an additional $1,200.00 to $5,600.00 per year.

Fortunately our Mortgage Specialists don’t work for the banks & the end results were great for all 7 of these families who, after working together with their Mortgage Specialist, are now thrilled to be keeping an additional $1,200.00 p.a. – $5,600.00 each year in their own pockets.

Please remember … Our Mortgage Specialists work for YOU … not the bank

Question: How much is your bank charging for your loyalty ???

Luke & Melissa were recently contacted by their Mortgage Specialist as the fixed interest rate on their Home Loan was due to expire. During their conversation Luke mentioned that the new interest rate being offered by their bank was 4.26% p.a.

DPF informed Luke & Melissa that 4.26% was not low enough as the same bank was offering even lower rates to new clients.

Our clients were happy for DPF to negotiate with the Bank on their behalf, and absolutely thrilled when their Mortgage Specialist informed them their Home Loan interest rate was reduced to 3.75% p.a. which saves them an additional $2,682.00 p.a. (i.e. $223.00 per month).

Not a bad result for a 5 minute chat.

Q:       How much did this cost Luke & Melissa ???

A:        $Nil

Q:       Did Luke & Melissa need to refinance their Home Loan to a new bank ???

A:        No

Q:       How ???

A:        Having your own Mortgage Specialist can save you $$$

If you or someone you know are being charged too much by a Bank click on “CONTACT US” to talk with a DPF Mortgage Specialist

or

Contact us directly on 07 5527 4744 or mail@dpfinance.com.au

YET ANOTHER BANK AGREES TO REDUCE INTEREST RATES FOR DPF CLIENTS . . .

Would you like to negotiate a lower interest rate on your Home Loan but are unsure how to do this ???

Vernesa & Igor were not aware that the interest rate their Bank was charging on their Home Loan was significantly higher than the rate their Bank was advertising to “New Customers”.

The higher rate was discovered by their Mortgage Specialist during a recent telephone conversation to discuss their potential change in lending requirements.

The “GREAT NEWS” for Vernesa & Igor is they will now be saving “THOUSANDS” more of their hard earned $$$ as not only has their Bank has agreed to reduce their interest rate, but also their Home Loan structure has been adapted to suit their new circumstances & lending requirements.

Q)   How much did this cost Vernesa & Igor ???

 A)   $Nil

 Q)   Did Vernesa & Igor need to refinance their Home Loan with a new bank ???

A)   No

Just another example of how borrowers can achieve great savings & outcomes when they team up with their “Personal” Mortgage Specialist.

Q)   Is your Bank charging you too much for your Home Loan ???

A)   If “YES” … Click on “CONTACT US” & let me know your preferred time to be contacted

or call (07) 5527 4744

Q)   Is a Bank charging your friend or family member too much for their Home Loan ???

 A)   If “YES” … Click on “CONTACT US” & provide their names + contact details + preferred time to be contacted

or call (07) 5527 4744

Government announces mandatory credit regime

Source: Mortgage Business Publication (Author: James Mitchell) – 2 Nov 2017

The Turnbull government will introduce mandatory comprehensive credit reporting (CCR) from 1 July 2018 in what is anticipates will be a “game changer” for lenders and consumers.

Speaking in Melbourne this morning at the Fintech Australia Collab/Collide Summit, treasurer Scott Morrison said the government’s current target of 40 per cent data reporting by year end will not be met, as only a “negligible volume” of data is currently being reported in the existing voluntary comprehensive credit reporting scheme.

“Less than one percent of CCR data is currently being shared in public mode,” Mr Morrison said. “Which is why today I am announcing that the Turnbull Government will now be proceeding to introduce a mandatory comprehensive credit reporting regime from July 1 next year.”

The mandatory CCR regime will start with the four major banks, given that they provide over 80 per cent of mortgages to Australian borrowers.

Mr Morrison expects other credit providers will quickly follow suit to improve their competitive position in the market.

“The banks will be required to have 50 per cent of their credit data ready for reporting by 1 July 2018, increasing to 100 per cent a year later. This is a timetable the government believes is entirely achievable,” the treasurer said.

“We will consult further on whether to mandate additional institutions being included on a phased in basis as well as on the implementation mechanisms for this decision, including the legislation.

There is still a lot more work to be done, but that work now is about implementing this decision, rather than making it. We have reached and passed this important threshold.”

Mr Morrison believes CCR will be “a game changer for both consumers and lenders” and will lead to greater competition in lending provide better access to finance for Australian households and small businesses.

The regime will give lenders greater transparency on a borrower’s true credit position and their ability to pay a loan.

“This reduces a lender’s exposure to defaults by allowing it to calibrate its lending according to risk.

This new transparency will also open up the lending market to new players by enabling them to better assess the credit risk of customers,” Mr Morrison said.

“They will then be able to offer interest rates that undercut the major lenders without the fear of defaults weighing heavy on their decision making. Or give them the option of taking on-board more riskier customers at premium rates.”

For borrowers, CCR will lead to a better deal on mortgages, personal and business loans, Mr Morrison said.

“If you have a good credit history – you’re paying down your mortgage, you haven’t missed a payment on your car loan and your credit cards are under control – you will be able to demand a better deal on your interest rates, or shop around, armed with your data,” he said.

Borrowers with “one or two black marks” on their name will find it easier to get a loan under the new regime, provided their recent history of repayments is positive.