While interest rates generally are on the way up, banks are still offering discounts and incentives to win over borrowers.
Research by financial comparison site Canstar shows that up to half of all lenders are now offering discounts to borrowers who have a sizeable deposit or home equity.
Canstar’s Steve Mickenbecker says numerous lenders looking to boost their market share are offering the discounts.
The Canstar research shows 49% of banks are offering customers with a 40% deposit or equivalent equity in their home a discount on their interest rate worth an average 0.21%.
The research also shows that those with a 30% deposit or similar level of equity can find deals for lower rates with almost a third of lenders offering a 0.13% reduction.
Mickenbecker says borrowers need to take initiative and ask new or existing lenders about discounts on offer.
“Do not wait for a bank to tell you because it rarely happens,” Mickenbecker says.