Westpac has just announced that it will increase its variable mortgage rates.
It is the first of the big four banks to raise interest rates for all its variable home loans this year, although many smaller banks had already moved to higher rates to ‘offset higher costs’.
Scott Morrison the new prime minister says people who are unhappy with their bank’s decision to raise mortgage rates should consider switching to another loan provider .
He encourages unhappy customers to vote with their feet, saying competition is important to a strong and accountable banking and finance system.
Money is a commodity. The money you get from one lending institution is the same as the money you get from another.
In theory, if your lender puts their prices up, customers should shop around to get a more competitive loan. The problem is, many people don’t.
Half of Australia’s banking customers still bank with their first-ever bank. This is part of the reason why they control more than 80 per cent of the mortgage market.
According to the Sydney Morning Herald (2 August 2018 ) only one in three customers have thought about switching in the last two years despite saving an average of $90 a month on a home loan by shopping around.
If you have an existing mortgage or seeking to borrow money then it can be a bid advantage to use a finance broker such as PCL money www.pclmoney.com.au.
You do not pay any extra hidden commissions and will often be presented with a cheaper interest rate and more flexible loan options.
PCL Money sources loans from a variety of lenders and is able to offer their clients the best loan facilities and deals available on the market.
So with a finance broker such as PCL Money broker not only are there no extra hidden commissions but also they can often present you with a loan facility that is cheaper and better suits your needs.
This means that PCL Money can often obtain finance for their clients at a more competitive rate than what their existing bank will offer them and with more advantageous terms and conditions.
With interest rates also on the rise overseas many Australians are considering changing to fixed interest rate loans which means that they will be protected from interest rate rises in the immediate future.
PCL Money is one of the county’s most experienced finance brokers and have been helping Australian families and businesses with competitive loans products since 1987.
PCL Money can help you with commercial business loans, residential mortgages, vehicle leasing, equipment finance and their expert knowledge of the industry often means that they can help clients who have had their loans applications rejected by the big banks.
For a confidential discussion about your lending options and the best loan products that are on the market contact the friendly team at PCL Money on 02 4426 99 77 or visit the website at www.pclmoney.com.au
Please note that the above is general financial information only and is not intended as personal financial advice for which you should contact a licensed financial professional.