The best way for a lot of mortgage borrowers to access the current super-low interest rates going around is refinance their loan and turn themselves into brand new borrowers.
Research director at RateCity.com.au, Sally Tindall, gave the advice when speaking to Broker News.
“The banks are offering up some of the lowest rates we’ve ever seen,” she said.
“The best way to get a rate discount is to turn yourself into a new customer.”
“Switching lenders could potentially free up hundreds of dollars per month for people in a position to refinance.”
Currently home loan borrowers can hunt down owner occupier fixed rate loans as low as 2.09 per cent which could save them hundreds of dollars a month.
Ms Tindall told Broker News that in the current COVID-19 crisis it was also an option to ask existing lenders for a rate cut.
“Australians who are struggling financially shouldn’t be afraid to ask for a rate cut either,” she said.
“Banks have made it clear they want to help people affected by COVID-19 where they can.”
The current advertised variable rates for the big four banks are:
Bank Advertised Rate LVR Req
CBA 2.79% <80%
Westpac 2.93% <70%
NAB 2.84% <80%
ANZ 2.72% <80%