Home loan discounts on offer

Anyone looking for a home loan who don't ask for a better deal may be missing out on a lower rate of interest. The Reserve Bank of Australia says more than 90 per cent of homeowners get discounts of 0.55 per cent off a typical, advertised rate of 7.32 per cent for variable loans. The discount can be as much as 0.70 per cent – a saving of more than $33,000 over the term of a 25-year, $250,000 mortgage. “Nobody pays 7.32 per cent these days,” said Denis Orrock, the general manager of consumer research firm InfoChoice. “If you're borrowing more than $250,000, you should be getting at least 50 basis points off that 7.32 per cent.”

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