Financial comparison website RateCity.com will host a home loan sale next Monday, which will see eight lenders cut rates, reduce fees, and offer cashback to those seeking to refinance their mortgage.
According to the website, the 40-hour sale will offer refinancers with a variable mortgage “exclusive deals” and could provide customers of the big four banks “savings of up to $39,000” (over 15 years for a borrower with a $353,700 mortgage and an interest rate of 4.52 per cent).
It will also reportedly offer the “lowest ongoing variable rate”.
The sale, which begins at 6am next Monday (8 May) and runs until 10pm on Tuesday (9 May), will only be available to those wanting to refinance to a different lender, and will not include the big four banks.
Lenders taking part will include Community First, HSBC, IMB, ING DIRECT, Mortgage House, Reduce Home Loans, State Custodians, and loans.com.au.
Sally Tindall, RateCity.com.au money editor, said that the current lending environment meant that the time was “ripe” for refinancing.
“With banks putting up rates out of cycle, alongside comparatively low wages growth, mortgage repayments are starting to pinch,” she said.
“Switching to a more competitive home loan is one silver bullet that’s staring us in the face.”
Ms Tindall said that the sale could put an estimated $222 million “back into the pockets of Australians” and divert $1.98 billion worth of mortgages way from the major banks.
According to the money editor, users will need to provide “some basic information” such as their current interest rate, loan size and property value and could receive a quote in less than a minute.
Users will then have up to 30 days to take advantage of the discounted offer, provided they register within the initial 40-hour sale.
Customers are being asked to check the eligibility criteria for each lender, however, as the website warns that anyone submitting paperwork for a loan that then gets rejected will see their credit history and score negatively affected.
Pre-registrations for the sale are open now.