If You Want a Good Home Loan Rate, You Need to Know Where to Look

Graeme Salt

There is now increased competition between lenders in the home loan market – and that is good news for home owners.


But these home owners will only benefit if they do their research on who is offering what rates.


Five years ago, before the Global Financial Crisis (GFC), there was strong competition for home loans. The banks were really on the nose, with their rates being undercut by small lenders like Wizard (remember them?).


Then the GFC hit us and the wheels fell off. Suddenly the vast majority of loans were being written by the Big Banks and the borrower was getting a raw deal.


Now, the market is thawing, smaller lenders are able to borrow money cheaply and are lending to homeowners at cheaper rates than the Big Banks offer. According to the ABC, so far in 2014 AMP, AFG, Pepper Home Loans, Heritage Bank and Liberty have borrowed billions on the global money market – money to be made available for home loans.


But it’s hard for the average borrower to know which of these lenders have accessed such large bundles of money and how competitive their rates will be. A good mortgage broker knows which lenders are keenest for business and, accordingly, will offer the lowest rates. Recently, I arranged special rates with Bankwest, Homeside and Suncorp. These rates were what we call under-the-table pricing as they are cheaper than the published rates that any customer will find on the Internet.


If you are looking for a competitive interest rate, contact your mortgage broker. Normally they have a panel of about 30 lenders from which to choose. They know where the best deals are - saving you both time and money.


For a no-obligations home loan consultation, Graeme can be contacted on 02 9922 5055