NOT ALL LENDERS ARE THE SAME, EXPERTS WARN

Mortgage holders have been slapped with a ninth consecutive rate hike in February and while it will add to repayment pain, borrowers need to be aware that not all lenders respond to the cash rate in the same way, says Canstar.

The Reserve Bank of Australia lifted the cash rate in February by a further 0.25 per cent to reach 3.35 per cent. According to Canstar, the latest rate rise means borrowers with a

$500,000 mortgage over 30 years will be paying $969 more per month on their repayments than they were in April. That adds up to $11,628 per year. This is probably not the last cash rate hike in 2023, with three of the four major banks predicting rates will continue to rise. With further rate increases on the cards, Canstar’s Editorat-Large, Effie Zahos cautions borrowers about the differences between banks and non-bank lenders and how they price home loans.

“Typically, non-banks – those that don’t have a full banking licence and can’t accept deposits from the public – tend to offer lower rates than banks. But as rates continue to rise, both here and overseas, the cost of funding for non-bank lenders will climb higher than it will for banks,” she said.

“One reason for this is that non-banks don’t have access to cheap deposits they can call on for funds, while banks that offer savings accounts do.

“We’re already seeing the gap between bank and non-bank rates closing. The gap between the average variable rate of the banks compared to the non-bank lenders in May 2022 was 0.71 percentage points. Today, that gap has shrunk to 0.56 percentage points.

“The tip here for borrowers is to keep an eye on their rate and how it compares to other rates on the market. Even if you have scored a rock-bottom rate, keep in mind that this may change so it can pay to be vigilant.

“If you do notice that your rate is increasing faster or higher than that of other lenders then you may want to look into refinancing.

“Reserve Bank data shows that there’s a 0.5 per cent difference between the interest rate offered to new customers versus existing home loan customers.”

This Duplex Sold for above the Owners expected price at the first open home.

Hear what the owners have to say about the experience Selling with Jocelyn:

Exceeds Expectations

We chose to use Jocelyn to sell our property after having previously bought our property through her and having been impressed by her communication, skills and expertise. Jocelyn has gone above and beyond to help us through the sale process. Her communication is frequent and thorough and ensures we know what is happening every step of the way. She ensured our property was in its best position to sell and sold above our asking price on the first open house. Jocelyn has been exceptionally supportive throughout the sale period with both ourselves and the purchasers and has gone beyond her role to ensure that everyone had what they needed and knew each step of the process and what to expect. Would 100% recommend using Jocelyn Verified by RateMyAgent

• DA Approved for 6 Townhouses • In the Approved DA plan each townhouse does consist of 2 bedrooms plus study with two bathrooms and powder room • The first stage and second stage done, base and frame

• The third, fourth and final stage with enclosing, fixing and practical completion is for you to finalise

• Zoned R3, nestled on a 1208 square metre block

• Situated in a quiet cul-de-sac

M: 0428 934 618

Personal And Professional Fantastic Agent

“Gizzelle was very helpful and supportive throughout the entire sale process. Communication was great and we felt she always had our best interests at heart. We really appreciate all the hard work Gizzelle put in and would not hesitate to recommend her to anyone looking at selling their property.”

Thinking of Selling, Buying

Very Happy Sellers

Litsa took care of every detail of our property sale and we could not have asked for a better outcome. From the moment we decided to sell with Litsa, we didn’t have to worry about anything as she handled the whole process with a high degree of knowledge and expertise and all with a friendly smile. The outcome of the sale exceeded our expectations thanks to Litsa and I would highly recommend her services for anyone wanting to buy or sell. Thank you Litsa.

Investing?

Just Listed Just Listed Just Listed 1 1 1 + 3 2 1 Artist impression

Sale : Just Listed

Inspection: storage • Split system air conditioning

• Spacious balcony with spectacular view of the Blue Mountains, perfect for entertaining family and friends

• Spacious car space

M: 0428 934 618

E: gizzellepowell@remax.com.au