Refinance to get the most from rate cuts

As the banks follow through on the recent base rate cut, Choice has urged homeowners to refinance.

The consumer watchdog has pointed out that the outlook for consumers on the hunt for low-interest home loans has improved considerably since August, when rates were stiflingly high.

And for those looking to refinance, the group recommended checking out credit unions or an online arm of a major bank in search of the best low-interest home loan deals.

“Neither of these options is available through a mortgage broker,” the site pointed out, which may encourage many Aussies to take their finances by the horns and get on the hunt for a cheaper home loan.

Choice insisted that there are certainly rewards for doing so, with three households surveyed by the group said to be capable of saving anywhere between $18,000 and $46,000 by looking to refinance through unions and online banks.

Those considering making such a move may wish to wait for Melbourne Cup Day, when the Reserve Bank will announce whether it will slash rates further.

Many analysts are predicting further cuts over the coming months.ADNFCR-1761-ID-18839087-ADNFCR