Rates on hold but home owners urged to switch loans: RACQ Bank

As the Reserve Bank of Australia (RBA) held the cash rate at 0.25 percent, RACQ Bank has urged Queensland home owners to hunt for a better mortgage rate, after new data revealed a staggering 73 percent didn’t know they could switch loan providers.

RACQ Bank spokesperson Lucinda Ross said today’s news meant it was still a ‘shoppers’ market’ for mortgage holders.

“There’s lots of confusion about when you can and can’t access a better rate, but the bottom line is, if you don’t have a two in front of your home loan right now, you need to change providers,” Ms Ross said.

“We’re operating in an incredibly competitive market, with fixed, variable and split loan rates all on offer at record lows. At RACQ Bank, we’ve seen a 42 percent increase in new split loan applications since this time last year, as homeowners look to get the best of both worlds with competitive fixed and variable rates.

“If you’re looking for your first home or are hoping to refinance, don’t just call one bank, call them all. Make sure they know you’re shopping around so they don’t hesitate to offer you the best possible deal.”

Ms Ross said mortgage holders should choose an institution that was not only competitive but offered competitive service.

“You’re unlikely to change your home loan provider many times during the life of your loan, so if you’re choosing to switch make sure you go with a bank you trust to look after you,” she said.

“Make sure your mortgage provider is committed to providing you with service beyond the basics and has your best interests at heart. 

“With all financial institutions in the process of adapting to Open Banking reform, which makes it even easier to take your information and switch to another bank, there’s really nowhere for the bad banks to hide.”