Putting Pressure On Your Home Loan Lender
Tuesday November 11, 2008
If your home loan lender is not lowering its rates at a reasonable rate in line with RBA interest rate cuts, you may need to help put the pressure on them. Refinancing your home loan with a home loan lender who is faster to cut their interest rates sends a message to home loan lenders that you want relief on interest rates sooner rather than later.
Take your time when deciding on which home loan lender to refinance with, and do not take a reactionary approach to refinancing. Just because your home loan lender does not immediately announce a rate cut after an RBA rate cut or just because they do not cut by the same amount that the RBA cuts rates by does not mean that you should immediately choose to refinance in response.
Before refinancing, take a good look at the competition. You may find that your home loan lender is acting no different to the competition. You should also compare their offerings to what you currently have using home loan calculators to determine the effects any differences in fees and interest rates will have on the affordability and cost of your home loan. It is not worthwhile to lose money by refinancing with a worse deal just to teach a home loan lender a lesson. Also, if your home loan lender is still offering you the best deal available to you, leaving them because they were unable to offer a better deal doesn't make much sense.
Please visit our comparison page if you would like to compare home loans or to find yourself a new home loan lender.
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