Every time there’s an interest rate cut that familiar routine plays out.
Mortgage holders race to online news sites or facebook to vent their anger, making threats about stringing bankers up by their jatz crackers, before screaming they’ll take their business elsewhere.
The media loves it, but does anyone actually follow through with their threat?
Now while I’ve explained in the past as to why bank funding costs have risen, but most people aren’t interested in the reasons, they just want to pay less in interest and fair enough.
So if you’re one of those people who just want to pay substantially less in interest, it’s worth casting your eyes over some of the loans that have the forsaken bells and whistles for an ultra low rate.
First and foremost is UBank’s UHomeLoan at 5.62%.
UBank only offers refinancing, which positions them as an alternative for frustrated mortgage holders.
UBank is a low cost online division of NAB and being low cost there probably are some drawbacks, but that’s the trade-off from paying less interest.
There are no application or administration fees, but the application is online and critics have suggested the processing time can be slow.
You need to be borrowing a minimum of $100,000 and have at least 20% equity in the property you’re refinancing.
The second loan with a rate below 6% is Bankwest’s Online Home Loan at 5.77%, with 5.82% as the comparison rate.
As evidenced by the name it’s an online application, but unlike UBank it’s available to new borrowing, unfortunately like UBank, there’s talk of slow processing times.
Again, it’s a minimum borrow of $100,000 and a minimum of 20% equity in the property.
Both loans are geared towards what both lenders would deem less risky borrowers who just want to pay their loan off faster.
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL/ACL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. Need help with your financial your financial future, we think we’re the best financial adviser in Australia.
