Home loan applications with award-winning online lender, loans.com.au Pty Ltd, have outstripped February’s record levels since it announced it would pass on the RBA’s May rate cut in full.
Managing Director, Marie Mortimer, said applications had peaked by more than 220 percent since Tuesday, 5 May, the surge driven mostly by owner-occupiers rather than investors.
“Borrowers are showing that they haven’t made a hasty decision with their home loan; they’ve monitored the market and made their choice carefully, when the time was right,” Ms Mortimer said.
“Loans.com.au will pass on the 0.25 percent rate cut in full to new and existing customers, when three of the big four banks won’t, and the response from customers has been clear.”
Loans.com.au’s 3.98 percent p.a. interest rate for Dream Home Loan Essentials is 1.47 percent below that of one major bank which held back 5 basis points of the RBA cash rate cut.
“That works out to a saving of nearly $400 every month in repayments or $143,196 over the life of a $450,000 loan,” Ms Mortimer said.
Although the current environment was ideal for getting a low home loan interest rate, Ms Mortimer urged a note of caution.
“Very low interest rates are enticing for borrowers, but don’t be seduced into taking out a bigger loan than you have budgeted for,” Ms Mortimer said.
“Interest rates won’t stay this low forever, so borrowers will need to be sure they can still afford their repayments once rates rise again.”
She encouraged borrowers to look at their lender’s interest rate history to gauge whether they are getting a genuinely good deal.
“Borrowers should always use the comparison rate to determine the true cost of a home loan, but it’s important to take a look at what the lender has done in the past with interest rates,” Ms Mortimer said.
“Make sure the lender has a proven history of keeping rates low and always read the fine print.”
Loans.com.au Pty Ltd
Loans.com.au Pty Ltd is Australia’s leading online loans company that believes in keeping things simple. That's why we have created a range of full feature home and car loans so you don't have to give up the important loan features you need.
The business has previously been awarded multiple CANSTAR 5 Star Ratings for Home Loans, Best Overall Online Lender by Your Money Magazine and the Australian Home Loan Awards 'Best Non-Bank of the Year', among others.
Loans.com.au Pty Ltd aims to deliver a customer centric approach, with an experienced team that cares about what they can do for you.
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