While many of the big banks have announced they will discontinue cashback deals, the mortgage market remains competitive, and a broker remains the avenue for a home loan customer to find a top deal.
Cashback deals are where the lender pays a borrower a sum of cash – usually between $2000 and $5000 – when they successfully settle a loan. It’s usually targeted at customers refinancing their mortgages from other lenders.
Westpac, NAB and CBA are among the major banks who have announced they’ll stop paying cashbacks. But this will only affect the advertised rates they’re offering on new mortgages, not existing loans.
Even though the competition between lenders to woo new customers may be waning, it’s as strong as ever for existing clients.
Banks still have a large number of customers who are on fixed-rate loans that will roll over onto much higher rates over the next year or so. Banks are desperate to retain as many of these customers as possible, and the way to do this is to offer competitive rates.
That means banks should continue to be focused on retention, which bodes well for existing customers seeking a competitive interest rate.
In this current era of rising interest rates as the Reserve Bank tries to contain inflationary pressures, mortgage holders are much more aware of what they are paying on their loans.
It continues to be worthwhile for customers to shop around for the ideal solution. Having a broker in their corner to negotiate with a lender gives them a better chance of securing the most competitive interest rate.
Brokers understand the home loan market and are across the interest rate deals and policy changes. They have access to a variety of loan options from their panel of lenders and can help you compare loan features and fees to help secure the most appropriate home loan for your circumstances.
Reach out to us today to find out more! Even for those unusual circumstances, such as being self-employed or having a bad credit score, we can assist you in finding a solution that suits you.
