Big banks in home loan cold war
Article by Mozo
Tension is heating up amongst the banks to attract new home loan customers with housing credit growing at a record low annual price of just 4.4 percent.
At the moment, homebuyers can quite easily find discounts of as much as 1 percent on a home loan. However it seems that it is the larger and more secure loans that the banks have the largest hankering for, according to a report by the Sydney Morning Herald.
Banks are segmenting based on 'risk rating' and offering the best discounts to those with a larger deposit says Sydney broker Jeremy Fisher.
"We are seeing off-the-table rates such as, for example, for a loan of over $1 million, we are seeing discounts in excess of 1 percent," Mr Fisher said.
A Mozo mystery shopper also found that the Big Four banks were offering potential customers further discounts beyond their already reduced packages.
"ANZ and Westpac both offered bigger discounts than their standard packaged rate discount, while NAB went as far as to say that they would beat any rate offered by the customer's existing Big Four bank," Mozo's Kirsty Lamont told the Sydney Morning Herald.
Those looking to take advantage of what many now believe is the bottom of the interest rate cycle, could find the best rates through a home loan comparison or by using the likes of a home loan negotiator to haggle the best deals from the banks for them, potentially saving thousands of dollars over the lifetime of the loan.
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