War on the home front
Banks battle to sign up mortgage customers
THE banking royal commission has prompted lenders to roll out deals to win new customers, including cashback, rewards points, rate discounts and no establishment fees.
Disastrous stories of fee gouging, falsified documents and inappropriate action has resulted in financial institutions having to take further action to lure new business.
Kirsty Lamont (pictured), a spokeswoman for financial comparison website Mozo, said there are dozens of special discounted deals and incentives rolling onto the market, particularly as the end of financial year looms.
“The home loan market is very quiet right now with property prices having fallen in two capital cities and some of the banks are struggling with the fallout from the Royal Commission,’’ she said.
“We have got lenders who are desperate to drum up some business.”
Mozo found some of the best deals available include:
UBank’s extended offer of $1000 cashback for customers who refinance to their UHomeLoan product.
Bank Australia – no estab- lishment fee on basic home loan, special and variable basic home loan offers until June 30.
Latest CoreLogic figures show Australian home prices fell for an eighth consecutive month in May following declines in Sydney and Melbourne – national dwelling prices declined 0.1 per cent last month.
The Reserve Bank of Australia board has kept the cash rate on hold at 1.5 per cent since August 2016 and many home loan interest rates are under four per cent.
1300homeloans director John Kolenda said: “In order to get market share lenders are really offering attractive rates and offers to lend out more money.”
Aussie Home Loans’ chief executive officer James Symond said there has been some rate fluctuations by lenders who are “finding new ways to compete.”
He said the market has been quieter nationally, credit is getting tighter and lenders are facing different funding pressures and he warned borrowers to look beyond special offers.
“Borrowers should always beware that so-called specials don’t turn sour once any honeymoon period or limited time offer expires,’’ Mr Symond said.
Mozo’s database found on a $300,000 30-year owner occupier home loan the lowest principal and interest variable rate is 3.39 per cent and monthly repayments are $1550.