At long last, borrowers are taking control of their personal finances with an increasing number of Australians taking the time to check their existing home loan and in many cases refinance to a better deal.
With the big banks holding the lions share of the home loan market, there is an opportunity for many Australian borrowers to switch their home loan to a better deal. And many it seems are. Figures released last week by the Australian Bureau of Statistics indicate that refinancing activity increased 19.9% per cent in April 2011 when compared to the same period last year.
Leading direct lender MyRate is once again pushing ahead with their annual 'Check Your Home Loan Day' on Monday June 20. Managing Director Kevin Sherman says Many borrowers have already benefited from a home loan health check and anyone that doesnt at least explore their options, could be burning thousands of dollars.
June 20 marks the fifth annual MyRate Check Your Home Loan Day a day when all Aussie borrowers are encouraged to devote twenty minutes to review their current home loan arrangements.
Spending just 20 minutes at least once a year to research what other offers exist, could save you thousands of dollars, or at the very least, offer you peace of mind that your existing home loan is working well for you. With so many independent comparison sites out there, comparing products has become really easy. One thing to watch out for warns Sherman is that some of these sites take commissions so dont necessarily show the best value products under the promoted sections of their sites. Consumers should use the full search options available and click through to the lenders sites to make sure that the rates and fees displayed are current and that they are dealing with a reputable lender. The following comparison sites are a good place to start: www.infochoice.com.au and www.Whistleout.com.au
During the downturn of the Global Financial Crisis, many Australians opted for a product from one of the big four banks. This means that many consumers are sitting with a home loan that has a higher interest rate, excessive fees and delivers lower levels of customer service than other products out there.
By way of example, the average standard variable rate home loan from the big four banks has an advertised comparison rate nearly one percent higher than MyRates - switching could mean a saving of over $100,000 on a $300,000 loan over 30 years.
On June 20, MyRate is encouraging all home loan holders to put the day in their diary and ask themselves the following questions:
CHECK YOUR HOME LOAN CHECK LIST
To make life easier for those wishing to check their home loan on June 20th, My Rate features a Refinance Centre online that shows how much money could be saved if you refinanced your loan. And for those wishing to keep making the same monthly repayments, how much sooner you could have your home loan paid off by reducing the interest rate of your home loan.