Remember the days when borrowers were eagle-eyed to rate changes on the first Tuesday of the month? Now, the interest rate world is very different.
Two years ago, whenever the Reserve Bank met and changed rates, the banks pretty-much said they would pass them on immediately. Now, it seems to be almost every day that a bank is modifying its rates – so much so that borrowers find it difficult to know what their bank is doing.
To make it worse, when a bank drops its rates, it makes a big announcement. But, when they increase rates, communication is only via a modest statement on a website.
It’s little wonder that borrowers are unsure if they are on an un-competitive product or not.
As a general rule of thumb, the smaller lenders tend to have sharper rates than the major lenders.
If you are a Big Four bank your brand and the number of branches you have, mean that you don’t always have to offer the lowest rates.
Whereas the smaller lenders are the challengers who compete by offering the lowest interest rate.
Jetstar and Virgin will nearly always be cheaper than Qantas.
Until the Reserve Bank starts changing rates (and that may not be till 2020), borrowers will be unsure what is happening with rates.
Mortgage brokers’ software keeps their finger on the pulse; with daily updates, it enables brokers to tell clients which lender is offering what.
And it’s a pretty rewarding career when, as a broker, you analyse over 30 lenders and find you can save your client thousands of dollars.