Re: Interest rate announcement today

The following comments are attributed to Peter White AM, FBAA spokesperson.

“With interest rates expected to remain on hold today, borrowers should be proactive and not complacent. 

After multiple rate rises, it’s the perfect time for mortgage holders to pause and review their current situation.

Many Australians are unknowing victims of ‘rate creep’, where lenders raise rates for existing customers while offering discounted rates to new borrowers. This means you could be paying more in repayments than you should be.

It’s a competitive lending market and many borrowers are unaware they can approach their lender and ask for a rate reduction. If the lender won’t do this – and many will not as they assume you won’t leave – ask a mortgage broker to look at the market and assess your situation and the options available.

There are often better deals available, and brokers can access a wide range of lenders including non-bank lenders that don’t deal directly with consumers. It is also important to note that brokers are legally obliged to act in your best interests, whereas lenders are not and cannot as they sell products. As cost of living pressures mount, there may be savings available for borrowers who are proactive.”