Record low rates encouraging refinancers: mortgage experts
Mortgage holders are encouraged to refinance and take advantage of some of the best home loan rates in decades as the market continues to witness record low official interest rates, according to mortgage aggregator Finsure Group.
Finsure Managing Director John Kolenda said with the Reserve Bank of Australia (RBA) likely to keep its cash rate at record lows, consumers have been seeking better home loan deals amid the uncertainty brought by the COVID-19 pandemic.
“We have seen a surge of interest in refinancing in response to COVID-19, with interest rates in the low 2 per cent range on offer,” Mr Kolenda said.
“With some fantastic deals on offer from lenders, it’s a great time to refinance and those that meet the lending criteria are certainly prepared to shop around for a better deal.”
According to him, lenders will consider the mortgage holder’s financial health and job security and the amount of equity in their home. “If you have been fortunate to not have been hit hard economically by COVID-19 now is the time to take advantage of record low rates and refinance,” he highlighted.
During this time, there are owner-occupier and fixed rates for two years available for interest of 2.09 per cent, while the three-year rate is 2.14 per cent.
Investment loans are also highly competitively priced with a rate of 2.29 per cent for up to three years, Mr Kolenda said.
“If you want a better deal and achieve some huge savings contact a mortgage broker who can help you navigate through the best deals.”
Businesses have shut their doors in response to unprecedented government restrictions, resulting in Australia witnessing one of the lowest COVID-19 infection rates in the world.
Mr Kolenda said while restrictions may be eased to help some businesses to return, there will still be many thousands of home loan customers facing financial hardship.
“You can still receive support from banks which are offering a six-month deferral on business and home loan repayments,” according to him.
“If you are [in] need of hardship assistance do not hesitate to contact a mortgage broker to help you with your application.”
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