Home loan customers can make significant savings if they look around for a better interest rate, according to mortgage broker network 1300HomeLoan.
Managing director John Kolenda said that despite the official cash rate holding at 1.5% for the past six months, there is still a wide variation in interest rates being offered by lenders.
Mortgage holders who reviewed their loans could save a significant amount, he said, with one recent customer reducing the variable interest rate by 72 basis points from 4.61% to 3.89% on their owner-occupier mortgage.
“Mortgage holders can save thousands of dollars a year by seeking better home loan options, based on a $400,000 mortgage a client is saving over $150 per month.”
“We are seeing customers who are prepared to review their home loan and refinance obtain interest rates more than 0.50% better than their previous loan. Consumers should always be seeking the best deal from lenders.”
With both banks and non-banks offering better deals, Kolenda said brokers were ideally placed to help customers navigate through the maze of deals on offer and negotiation reductions in fees and charges.
Many experienced brokers were engaging with customers and supporting them by identifying the most suitable products and savings, he told Australian Broker.
“Customer engagement is done on a number of different fronts. The more experienced brokers with sophisticated CRM systems are definitely engaged with their customers. No doubt whether it’s newsletters, SMS or ringing them up regularly, they’re always engaged with their customers and in a position to review their position at any time.”
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