The official cash rate remained at its record low of just 0.10 per cent when the RBA met for June, which came as little surprise to many.
But even though mortgage holders feel comfortable that interest rates will remain low for some time, with the RBA all but promising that rates won’t go up for the next few years at least, many people still aren’t getting the most savings that they can.
That’s because many of those who already have a home loan haven’t spoken to their lender to make sure they are getting the best deal available.
Have you talked to your lender?
Lenders don’t always pass on rate cuts, and even when they do they often reserve their best deals for new customers – this means that you may not be getting the best rate you can.
If you haven’t done so recently, it’s well worth talking to your current lender and asking for the same rate that’s being offered to new customers, or at least a lower rate than what you’re currently paying.
You will probably need to negotiate a little, so do a little research beforehand to find out what your lender offers, as well as what’s available from other lenders.
Are you prepared to switch?
If your current lender won’t budge then you may want to consider finding a better home loan deal elsewhere.
There are a lot of competitive deals on the market right now that may be worth taking advantage of, and switching loans is normally a relatively quick and easy process.
However, just make sure you make yourself aware of any potential switching costs as well as any terms or conditions that may catch you out on a new loan, such as higher account fees, longer loan terms or future rate rises.
What if you’re about to take out a home loan?
Those who are currently house hunting should be hunting for a good home loan too. It does help if you find a home loan and a lender that you are happy with from the start as it can save you a lot of heartache down the track.
Take your time researching what’s available and don’t just look at the rate itself. There are a lot of features of a home loan that may end up being important to you, such as an offset account or the ability to make extra payments.
A lot of people also place importance on quality customer service and speed and efficiency, especially when they need home loans approved quickly. In this case you may want to ask friends and family for recommendations, or checkout online reviews.
A mortgage broker can also be helpful in finding a lender that is suitable for your particular situation.