Save Possibly $45,000 by Looking Beyond the Big Banks for Your Mortgage

New research reveals homebuyers could save more than $45,000 over the life of their loan by choosing smaller lenders instead of Australia's "Big Five" banks.

Analysis of Pha Financial Services clients shows that on an average mortgage of $429,000, borrowers could save $1,466 annually by choosing Teachers Mutual Bank—which recently reduced its variable interest rate to just 5.84%—compared to the Big Five's average rate of 6.29% (ANZ, CBA, Macquarie, NAB & Westpac). This difference amounts to nearly $44,000 in savings over a standard 30-year loan term.

The mortgage market is becoming increasingly competitive, with lenders passing on the full RBA rate cut in their recent announcements. This competitive environment puts borrowers in a strong position to negotiate better deals.

However, borrowers should consider their options carefully before locking in fixed rates. With additional rate cuts expected later this year, committing to today's fixed rates might mean missing out on even better offers in the coming months.

Working with a broker with access to multiple lenders can significantly improve your chances of securing the best possible deal. Pha Financial Services provides access to over 40 residential lenders, giving clients a comprehensive view of the market.

CHEAPEST VARIABLE RATE HOME LOANS

Lender – Lowest effective variable rate – following rate reductions

Teachers Mutual Bank – 5.84%

Suncorp – 5.89%

Bank First – 5.89%

uBank – 5.89%

Auswide – 5.94%

TOP 1-YEAR FIXED RATE MORTGAGES

Lender – Fixed Rate – Comparison Rate

Teachers Mutual Bank Fixed Rate Home Loan – 5.74% – 5.76%

Macquarie Bank Fixed Home Loan – 5.79% – 5.95%

Bank of Melbourne Advantage Package – 5.79% – 7.65%

TOP 3-YEAR FIXED RATE MORTGAGES

Lender – Fixed Rate – Comparison Rate

ME Bank Member Package – 5.54% – 6.41%

Suncorp Bank Home Package Plus – 5.59% – 6.24%

Macquarie Basic 3 years – 5.65% – 5.88%

*Products include 20 per cent deposit and are available to all qualified Australians

This information has been prepared by PHA Financial Services and does not take into account your objectives, financial situation or needs. Before acting on this information you should consider whether it is appropriate to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision. The information provided was accurate at the time of publication and changes in circumstances after a document is published may impact on the accuracy of information. Some information may have been collated from various third parties and we make no assertion that the information was originally ours.