Refinance boom with non-major lenders
Image courtesy of @bowerbirdinteriors
RISING INTEREST RATES
Fixed and variable rates are on the rise and the market predicts the cash rate will hit 3% (currently at 0.85%) by the end of the year, meaning interest rates will most likely be above 5%. No wonder homeowners are rushing in for a better loan deal on their current mortgage.
NO LONGER IN FAVOUR OF BIG FOUR
Refinancing mortgages are surging, but the number of wins is in favour of non-major lenders. In the three months to April, the mortgage market for all deposit-taking institutions went up by an estimated $31 billion, and the big four banks picked up only $11.5 billion of this loan growth. (source: The Sydney Morning Herald).
COMPETITIVE RATES AND LOAN DEALS
Homeowners are on the lookout for the best interest rates and home loan deals to help them make the switch and seal the deal, no matter the lender type. There is a scope of opportunity in minor lenders and their ability to better assist them on the next financial step to their property goals offering extremely competitive rates, cashback deals, and home loan packages.
Image courtesy of @bowerbirdinteriors
GROWING TRUST WITH ONLINE LENDERS
Clients looking to refinance on their current mortgage have a growing trust and confidence with non-major financial institutions as a number of these lenders have been in the market for years and are now considered household names such as ME Bank, BOQ (Bank of Queensland) and Virgin Money.
Most, if not all, of second and third tier lenders are digitally based, and with the advancement and convenience of online banking the preferred communication method has definitely shifted, giving homeowners more of a reason to make that loan switch.
WHY REFINANCE?
Other than looking for a more competitive interest rate and loan package, you may look at renovating or purchasing an investment property. If your property has gone up in value we will look at replacing your existing loan with a larger loan to allow for the release of usable equity to fund your next upgrade and property purchase.
CONTACT APS
Contact our experienced mortgage broking team today. We will look to see if you can comfortably meet the repayments of a bigger loan with rising rates and determine your borrowing capacity.
CONTACT US FOR A FREE CONSULTATION & HOME LOAN REVIEW