AS lenders seek to wind back their level of investment lending, as per the Australian Prudential Regulation Authority's new restrictions on investment lending growth, competition in the owner occupied space has started to heat up.
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In fact, many of Australia's lenders are offering owner occupied borrowers a raft of incentives including interest rate discounts, cash back offers and fee waivers.
In all of my time as a mortgage broker, I have never seen the level of lender competition we are witnessing.
Regardless of whether people are looking to buy a home or refinance their property, they can be guaranteed of securing an incredibly competitive home loan deal.
For those local borrowers who have been in the same home loan product for a while, now may be a good time for them to give their mortgage a much-needed spring clean.
A good de-clutter never goes astray and often borrowers uncover financial aspects of their life that need some reassessment or to be changed altogether.
Borrowers who give their home loan a spring clean may realise that they are in the perfect position to refinance their mortgage.
Refinancing may allow borrowers to repay their home loan sooner and ultimately achieve their next financial goal sooner.
Further, refinancing can be a great way for borrowers to lower their mortgage repayments, consolidate their debt and even access equity in their home.
I have put together the following tips as a starting point for those locals wishing to give their mortgage a spring clean:
■ Consider the mortgage features: Does your loan have a range of features you don't use? You might be able to switch to a cheaper loan with fewer options. Or, you may benefit from a loan with more features, such as an offset account.
■ Look into debt consolidation: If you are struggling with a range of debt repayments, rolling your other debts into your mortgage can help you to pay less each repayment period and gain some peace of mind. However, remember that those debts will be stretched over a longer period i.e. your entire home loan term.
■ Get a free home loan health check: A free home loan health check from a reputable mortgage broker, like myself, can not only help you understand what home loan features are available, but find a solution that best suits your needs.
There is no obligation, so why don't you give me a call to check you're still doing the best thing by your mortgage.
Richard Windeyer is a mortgage broker with Mortgage Choice. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Phone: Richard Windeyer on 1800 01 LOAN.
