Last updated on 21st December 2020

Rate Watch 2020: Rates On Hold. But Is Your Mortgage Safe?

After years of historic lows, speculation is rife with expectations for the next rate announcement. Is now the best time to switch?

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“With interest rates having already been reduced to a very low level and recognising the long and variable lags in the transmission of monetary policy, the Board decided to hold the cash rate steady at this meeting,” RBA Governor Phillip Lowe said in a statement.

While the RBA didn’t increase or decrease the cash rate, it doesn’t mean there aren’t savings to be made. It happens all the time. Boutique lenders reduce their fixed rate offers to attract new customers. This boutique banking strategy is saving Australians thousands of dollars off the life of their loans!

It begs the question, with rates staying the same, is there a way to obtain a better deal on your current mortgage? The fact is, despite there being better deals out there, the big banks know that the majority of people will do nothing. Simply because, when it comes to banking, most customers find it ‘too difficult’.

But if you’ve built up enough equity in your home, you have the ability to refinance your loan with a lower interest rate, or to fix the rate for all or part of your loan, potentially saving yourself thousands of dollars. Not only will you find banks offering lower rates to new customers, but smaller lenders are also offering attractive rates, bonus features and no-ongoing fees to attract frustrated switchers.

Our expert service can help you take advantage of the deals you wouldn’t otherwise know about. You can start by comparing rates from trusted lenders across Australia, and if you find a better deal you’ll get access to personalised advice from an experienced broker who can negotiate for better loan terms on your behalf.

Here’s How You Do It:

Step 1: Select your State below.
Step 2: After answering a few questions, you will have the opportunity to compare competitive rates and could be eligible for significant savings.

The difference a slightly lower rate can have on your bottom line is staggering. For example, on a $500,000 loan, the difference between paying a rate of 4.5% and paying 4% works out to a staggering $41,996.77 over the life of a standard 30-year loan… and if you are paying either of those rates you should have searched for a better loan years ago. That could work out to be a lot of extra cash for you to spend or reinvest.

At Rate Comparison our team of experienced brokers can walk you through each step to help you save. Finding a better deal on your mortgage doesn’t need to be complicated, and each month, we’re helping more and more people take advantage of the savings that are waiting to be discovered.

We’ll streamline the process and help you get your approval faster. Well, our brokers make switching that easy, assisting with paperwork and guiding you through the process so that you’re informed and in complete control throughout the process.

For most mortgage holders, there are better deals out there, and with a rate rise sweeping through the big banks, there’s never been a more important time to compare rates and see if you could save.

This article is opinion only and should not be taken as financial advice. Check with a financial professional before making any decisions.