What a difference a year makes! During our 2008 Mortgage of the Year Awards, the financial crisis was in full swing, with non banks reeling from tight supply of global capital. Interest rates were running at 9.46%, the highest levels since 2000. The big five banks looked set to re-take market share lost to the non bank players. Predictions were so dire that the Federal Government injected funds into the market in an effort to keep competition alive.
One year later, and we've seen resurgence in competition from banks and non bank lenders alike. Interest rates have plummeted to record lows and renewed interest from first-home buyers driven by attractive government grants has reshaped the competitive landscape.
For lenders, it's a very different game! The focus has shifted down-market somewhat, but lenders are more hungry for your mortgage business than ever before.
This year, as part of our Mortgage of the Year Awards 2009, we analysed over 1,000 mortgages on offer in Australia using a range of mortgage scenarios. Our analysis takes into account the true cost of a mortgage product, looking at each product and its features as a whole. The results of this analysis provided us with a list of the best Australian Mortgages in 12 categories.
While choosing a home loan is never easy, now is a good time to be looking! The Mortgage of Year Awards 2009 will certainly help inform you of which lenders have the most attractive products. With competition so tight and the differences between the leading lenders being so close, it's likely that you will find a lender or broker that can tailor their mortgage products to your exact needs. And at the end of the day, that's the real winner!
Partial list of winners:
• Mortgage of the Year: Pacific Mortgage Group, Standard Variable Home Loan
• Bank of the Year: Westpac
• Best non-bank lender: Homestar Finance
For full details, check out the latest issue of Your Mortgage magazine, out on sale now!