Rate rises challenge borrowers to get best home loan deal

” [RBA] The Board is determined to bring inflation back on target and will do what is necessary to achieve it. ”

Read More

The inflation struggle has pushed the cash rate up sharply, but it remains below its level that is historically low of%. It’s really no doubt sparking uneasy conversations from the dining room table regarding the surge in home loan repayments.

As a result, leading mortgage broker My Mortgage Freedom expects a surge in inquiries as more investors are excited about increasing their repayments.

Founded in 2011, the organization has seen significant alterations in market conditions throughout the years and believes it really is well positioned to simply help anxious borrowers through its loan monitoring system, RateTracker.

RateTracker allows borrowers to go into loan details and continuously compare their rates to market that is average.

The system will go live in 2020, shortly after the government that is federal the Open Banking Act, and it is an integral area of the company’s growth strategy.

Open banking makes it much simpler for borrowers to compare banking products, and RateTracker shows if borrowers want lower interest levels using their bank or want to entirely change banks.

Sean Murphy, director of My Mortgage Freedom, said:

My Mortgage Freedom Director Sean Murphy.

“We were looking at not only what we could bring to the market to be more competitive, but also what we could do to protect our customers from changes in interest rates. Bring monitor and accountability mortgages in real time.

“It’s Hard for dad and mom borrowers to keep track of interest rates, what’s available in the market, and what they’re owed.”

The director, Anthony Arabakov, says that asking for lower interest rates from banks or refinancing with another bank has saved My Mortgage Freedom customers about $3 million over the past two years. .

“In the first 10 months of 2022, our customers saved $460,000 just by renegotiating with their current bank. We are saving $2.6 million.”

Arabakov said banks are likely to match lower rates offered by competitors because they want to retain customers. RateTracker allows My Mortgage Freedom to stay in touch with customers and help win business that is additional a borrower needs another loan for an automobile or renovation.

Anthony Arabakov, director of My Mortgage Freedom.

“In addition, it helps banks by providing them the opportunity to retain customers if their offers are competitive,” says Alabakov.

Murphy said he expects demand to surge as people much more aware of their repayments in addition to their effect on disposable income. During the future that is near he sees a surge of interest from people taking out fixed-rate loans signed in 2019 and 2020.

“RateTracker allows borrowers to monitor their mortgages in real time and hold the bank ”( that is accountable My Mortgage Freedom Director Sean Murphy

“People taken from fixed rates should be shocked by their brand new repayments, so our goal year that is next to educate them and prepare them financially for that point.

“RateTracker keeps track of all expiring fixed rates with them, minimizing the threat to the family unit.”

RateTracker is open to everyone, both clients and non-clients so you can proactively discuss budgets and affordability. To make use of it, a borrower enters their loan details from her website and RateTracker continuously compares that rate with the market that is average.

A “breach” occurs when the borrower’s interest rate is 0.5 percentage points higher than the market rate that is average. All of this is determined by the purpose and product of the loan. The RateTracker team alerts the borrower via text and initiates a conversation about what to do.

Murphy said there was no obligation to let My Mortgage Freedom handle the situation at that time. Borrowers are free to renegotiate or refinance as needed.

My Mortgage Freedom is not tied to any bank and is proud of its independence, adds Alabakov.

“Brokers now handle about 70% of mortgages because customers are noticing that brokers understand the differences in policies and products from bank to bank.

“The reality is that banks don’t offer this service.There are some good mortgage brokers out there, but using this technology in these market conditions that we have built will help us. and present our clients a advantage that is competitive*)For more information, please visit the URL that is following mymortgagefreedom.com.au

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *