Following Australia’s official cash rate being cut to a record low last week, the CEO of mortgage broker Aussie has released a message directly to borrowers, urging them to turn to brokers to determine if they’re positioned to benefit from the current environment.
“I expect many fixed and variable mortgage rates will fall below 3 per cent over the next month. Borrowers should be exploring the market for competitive rates and speaking with a reputable mortgage broker,” said Aussie CEO James Symond.
According to Symond, borrowers who take advantage of the full 0.25 percent cut being passed on by many lenders through refinancing, could see $45 saved a month, or $540 a year on a $300,000, 30 year mortgage.
“A decision to see a mortgage broker could save borrowers thousands of dollars and years off their repayments over the life of the mortgage,” said Symond.
Currently, about 30% of the loans being provided through Aussie are refinances of existing mortgages; Symond expects this level to rise as new mortgage rates apply to loans.
However, Symond also highlighted the importance of ensuring that by refinancing, borrowers do not incur greater costs, such as through break fees.
To this end, he has encouraged consideration of the following questions:
“Now is a great time to refinance and exploit the strong competition amongst lenders, but borrowers need to get sound, well researched advice from a credible broker or lender before taking this step,” the CEO concluded.
