Competition heats up in the home loans market

Thursday 07 June 2012

Article by Mozo

There is never a bad time to compare home loans to see if you can get a better deal.

However, the number of property owners who are searching for better terms tends to rise sharply after the Reserve Bank of Australia sanctions cuts to interest rates.

The central bank reduced the national cash rate to 3.5 per cent earlier this week and all eyes are now on the country's banks to see if they will pass the savings on to their customers.

In the past, the "big four" lenders have opted not to offer the full reduction to mortgage holders and it will be interesting to see what happens this time.

To spice things up even further, small lender CUA has launched a new home loan product that it insists is more attractive than those offered by the major banks.

The Rate Breaker deal will offer interest rates that are one per cent below those provided by the big four.

Chief executive at CUA Chris Whitehead said the firm was beating the country's most established lenders at their own game.

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