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Mortgage lenders turn it on for spring
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Mortgage lenders have kick-started an aggressive incentive war in a bid to lure new borrowers, including offering free cash to switch and to price match on interest rates. But Australia’s leading financial comparison website RateCity (www.ratecity.com.au), has warned borrowers that rates are more important than a discount or deal.
Alex Parsons, CEO of RateCity, has urged people to be smart and take into account more than a discount when shopping for a home loan.
“Cash back incentives and other deals can be a great bonus for borrowers, but it’s critical that borrowers look at a wide range of home loans and check comparison rates and features to make sure the deal is the best option for them long term,” he said.
“Taking out a home loan is one of the longest-term financial commitments that you’ll make and so the deal should be the icing on the cake, not the reason to get a product.
“Most borrowers will be better off shopping around for a home loan with a low ongoing interest rate, low fees and the features that suit them, rather than taking up a special deal like a cashback.”
Parsons said that aside from advertised incentives and deals, most lenders will negotiate on rates with new and existing customers, “If you’re paying more than 5 percent on a home loan it’s time to ask for a better deal or consider refinancing into a lower rate.”
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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.