The RBA has left the cash rate on hold for the 18th consecutive month in their first board meeting of the year, but that doesn’t mean home owners should accept their current rate.
New research from RateCity.com.au shows that some of the lowest rates on the market are being reserved for mortgage holders who already have sizeable amounts of equity in their property.
Mortgage House, for example, is currently offering a rock-bottom rate of 3.44 per cent with one catch – you need to already own at least 70 per cent of your property.
RateCity money editor Sally Tindall said lenders were on the hunt for ‘ideal borrowers’ – owner occupiers with decent deposits of at least 20 per cent.
“Borrowers who have benefited from the property boom are in the drivers’ seat when it comes to rates,” she said.
“The banks want you to have some skin in the game. If you own more than 20 per cent of your property, you’re holding a powerful bargaining chip,” she said.
“Find out what other lenders are offering new customers, then pick up the phone to your bank and ask them for a lower interest rate.
RateCity research shows an average borrower with a discounted variable mortgage with one of the big four banks could save an estimated $215 per month or $77,343 over the lifetime of their loan by switching to the lowest rate lender on the market.*
For a full list of low rate loans click here.
*Calculation assumes borrower has an owner-occupier principal and interest mortgage of $350K with a loan term of 30 years.