6 Nov 2010
Homeowners were a little disappointed at the start of this week with the announcement that interest rates would be going up 25 basis points, to reach the current national cash rate of 4.75 percent.
For the average homeowner this means an increase of roughly $50 a month on household fees, which is never great news to hear, especially right before Christmas time.
But before you start stressing out about how to pay off your mortgage, go and talk to your home loan provider about your options and if possible try and negotiate some savings. You’ll be surprised at what your lender can offer you in order to keep your business.
The home loan market is particularly competitive right now as well because non-major lenders recently came back on the scene. So even if your current home loan provider isn’t willing to offer you a better deal then there is also the option of shopping around and finding a better rate for yourself.
If you want to do some research on the current home loans on the market have a look www.infochoice.com.au
, which offers a great home loan comparison tool. If you do intend on switching home loan providers though just be aware that you may have to pay penalty fees for leaving your lender, so take this into account.