Home buyers are being urged to look closely at their home loan interest rate as the number of discount loan products soar.
Leading financial comparison website RateCity is warning borrowers to carefully review enticing home loan interest rate promotions prior to switching or taking on a new loan.
Research by RateCity has revealed in the past 30 days five lenders have dropped some of their residential home loan rates by up to 45 basis points.
RateCity’s chief executive Damian Smith said Australia’s major lenders are pushing harder to preserve their home loan market share.
“When the Reserve Bank keeps the lid on the cash rate it's unusual to see lenders dropping their variable interest rates, so it's generally good news for borrowers that some lenders are offering discounts,” Mr Smith.
"It's clear that advertising campaigns work and the major lenders have the marketing budgets to get attention. But it doesn't mean that borrowers will always get the best deal out of promotional home loan offers.”