Borrowers opting for cheapest home loans

Friday 13 March 2009

Article by Mozo

In a bid to save even more cash on their new home loan deals, Australians are showing apathy towards special offers such as cheap credit cards and savings accounts that often come attached with new mortgages.

The AAP reports that the most basic home loan packages have been soaring in popularity in recent months, while the fancier options are being left on the shelf.

Basic loan demand overtook that for standard loans in January and continues increasing to levels not seen in years, reaching 49 per cent of all loan approvals," Mortgage Choice senior corporate affairs manager Kristy Sheppard told the news agency.

She added that many people are refusing the extra offers of credit cards and low-interest savings accounts linked to the home loan in a bid to keep the overall cost down.

Earlier this week, Sydney Morning Herald columnist David Potts insisted that with the Reserve Bank pegging interest backs as low as anyone can remember, it was time for people to start making home loans their "new best friend".

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