Beat The Rate Rise

Don't Get Mad Get Another Home Loan

Homeowners hurting after the Commonwealth Bank's shock 0.45 per cent rate rise are being advised to get smart and get a better deal.

Tomorrow Finance director Mitch Fraser said the rise, almost doubling that of the Reserve Bank, would take the Commonwealth's standard variable rate to 7.81 per cent, 1.37 per cent more than the special discounted rate from a major bank of 6.44 per cent currently available through its website.

"I can understand people being angry," said Mr Fraser. "But there are ways to beat this. People tend to put up with this sort of thing out of loyalty or because they don't have the time or the ability to negotiate a better rate.

"And that comes back to what Tomorrow Finance is all about. We've done the negotiations to get a discounted rate and borrowers can access it through our website. No ringing around all the banks, no haggling, no wasted time."

Tomorrow Finance is a web-based home loan information provider that connects home buyers with the cheapest bank loans available in Australia.

In the past few weeks as speculation about the Reserve's intentions mounted Tomorrow Finance had noted a surge in browsing activity as borrowers became concerned about an imminent rate rise.

Said Tomorrow Finance director John Allen: "People are slowly realising that when big institutions make decisions that impact on their financial wellbeing there are options available to them; they are not impotent and they are certainly not going to remain loyal if it's always a one-way street.

"An increase of 0.45 per cent or even 0.25 per cent will put many people who are already struggling at breaking point. So the choices are quite clear sell up, suffer in silence or find a cheaper loan.

"There has always been scope for borrowers to negotiate a better rate from their lender but who has the time these days to hit the phones, negotiate a rate and use that as leverage to get a better deal?

"It's great in theory but in practice it doesn't happen, otherwise we'd all be paying lower rates. The beauty of our offer is that we've already done the negotiating and made it available to users of our website.

"It's the simplest thing you could ever do to save thousands of dollars and potentially save you from making a bad decision such as selling your home."

ABOUT TOMORROW FINANCE

The arrival of Tomorrow Finance in the mortgage market spells the beginning of a new generation in the way borrowers negotiate their home loans.

Just as mortgage brokers carved out a niche for themselves a decade ago, Tomorrow Finance is tapping into consumer demand for a flexible, transparent and no frills approach that makes it easy to find and secure the best and cheapest home loan from a tier one lender.

Tomorrow Finance is an independent home loan information provider with a business model that connects home buyers with some of the cheapest bank loans in the country. They are able to do so by running a skinny web-based operation and not charging trailing commissions, the little-known fee that allows brokers to keep on taking a cut over the lifetime of a loan.

The banks like it because customers are referred to them through the website and the commissions are a fraction of that generally paid to brokers and without the on-going cost. Customers like it because they have access to a pre-negotiated discounted bank home loan that is lower than the banks' advertised rates.

Established by Mitch Fraser, a web developer, and John Allen, whose background is in finance and
property, Tomorrow Finance has come into being at a time when people are facing a range of
increased costs, not only interest rates.

Tomorrow Finance has no direct contact with the customer, so there is no incentive to direct
borrowers to a specific loan or lender. This is an important factor in keeping the business honest and
because everything is conducted online, the borrower reaps the savings.

Visit Tomorrow Finance at www.tomorrowfinance.com.au
For more information contact:
Jenny Wills
0407 212 373
[email protected]

or John Allen:
0414 896 949


SOURCE: Tomorrow Finance