Leading online mortgage broker, eChoice says while both variable and fixed interest rates are the lowest they’ve been in years, borrowers should still look at maintaining their current repayments.
The Reserve Bank’s statement was clear, omitting from their release that ‘rates will remain under review’, a signal for borrowers that this possibly is a one off move and not to depend on any further rate cuts.
Combined with the Housing Industry Associations’ statistics, house prices fell the most in almost three years last quarter. Leading up to Christmas, borrowers should put the focus on their mortgage - whether it’s paying off the loan sooner or adding value to their home through renovations, according to eChoice Director Mark Flack.
However for those shopping around or refinancing, there are still some great savings to be had and the online space is now more aggressive than ever.
According to Mr Flack, in the month of October, “more than one third of eChoice’s pre-approvals chose an ‘online lender’ versus a traditional bank or non-bank. Interest rates are no now far more competitive than ever before and the difference of a variable rate can be more than 1%.”
If you take an average loan size of $300,000, that’s a saving of over $100 per month and when accumulated you can expect to cut years off the loan.
The eChoice panel offers a variety of lenders and compares not only the major lenders as well as online. “We’re seeing a real trend with online lenders, for example, Super Rate has been on the panel since November last year and has remained almost one per cent less than the major banks since its launch.”
Super Rate is offering a no fee variable rate of 6.70% p.a., while it’s 1 and 3 year fixed rate is 6.19% p.a. making it one of the lowest rates in today’s market.
According to Mr. Flack, eChoice borrowers are savvier than ever before and have remained loyal to the online model which has been available since 1998. It’s simple and the time saving process means the client does not have to see a broker. The application from pre-approval to settlement can be handled via phone and email.
eChoice Home Loans
eChoice was established in 1998, and using a unique combination of people and technology has helped thousands of Australians achieve their financial goals. eChoice aims to provide consumers with a choice of products and services delivered by a trained, competent and compliant team of relationship managers in a professional and ethical manner – all for free.