Refinancing Your Current Loan Makes Sense
The finance markets are always changing. Lenders are regularly updating their products and providing new points of difference to help them compete and gain market share.
Plus, the number of lenders has never been more diverse. Whilst the High Street lenders (the Big 4 plus a few regional players) dominate the lending landscape, there are now so many more lenders to choose from; lenders who are offering products that fit niches which the major lenders do not cater for. Plus, their rates are often as sharp as or sharper than the major lenders.
And, as with many consumer-based products where there are a few large suppliers, existing customers don’t always get the same deal which is being offered to new clients – unless they ask for it.
This is confirmed by the Reserve Bank of Australia. Since 2018, new customers have, on average, been getting a much better variable rate than existing customers.
Here are 8 reasons you should consider refinancing:
Rates for existing customers may not keep up with rates for new loans. With regular movements in interest rates, you need to regularly confirm your lender (and more importantly, your lender’s product) is keeping up with any downward trend.