What are my options if my lender doesn’t pass on the rate cuts in full?

If your lender is tight-fisted and not passing on the latest interest rate cuts in full, it might be time to take mortgage matters into your own hands. However it’s important you consider the pros and cons of refinancing the mortgage before making a switch.

This will involve looking at ‘comparison rates’ offered by your current lender and comparing it to the competition. The comparison rate (also known as Annual Average Percentage Rate) is not usually the advertised rate and calculates the average interest rate on a mortgage including any ongoing or upfront fees.

Ask for a better deal from your lender: But before making a move, tell your current lender that you are planning to switch home loans. You may be pleasantly surprised that your current bank, credit union or building society might be prepared to cut you a deal in the form of a more competitive interest rate.

Shop around: If you don’t have any luck with your lender, the good news is that Raine & Horne’s financial services arm, Your Broker, can match you with the right lender.

To contact Your Broker, call 1300 765 774.