Mortgage holders need to ‘review their home loan’
Lenders have investors in their sights with out-of-cycle interest rate movement, says one mortgage expert.
While the RBA hasn’t moved on rates since the cut in August 2016, lenders have lifted the rates on more than 200 loan products in recent months says 1300 HomeLoan managing director John Kolenda.
“Customers with interest only loans and investment loans have been the main target of the out-of-cycle rate rises,” Mr Kolenda said.
“But it has never been more important for all mortgage holders to be reviewing their home loan than it is in the current lending environment,” he said.
Rumours have been circulating that the RBA may cut rates again, but that hasn’t stopped major banks upping their interest rates on home loan products.
“While the cash rate is at record lows, complacent consumers can still be paying more than they should be,” said Mr Kolenda.
The next RBA decision will come on February 7, but as this will be inside the first weeks of Donald Trump’s presidency, Mr Kolenda says its unlikely rates will be changed due to uncertainty around the global economic impact of the new leader.
However, Mr Kolenda urges investors to review their loans as there are still bargains to be had, but they are becoming less abundant than they were when rates first began to drop.
“With the intense competition between lenders, borrowers don’t need to wait for the RBA to act. Talk to a mortgage broker and secure a lower rate independently of an RBA decision and save money,” said Mr Kolenda.
The RBA made the decision to cut the official cash rate to a record low of 1.50 per cent in August due to incredibly low inflation figures.
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