As official rates remain unchanged for another month, borrowers using the current time to shop around for a good rate need to realise that unless they also get the right advice to operate that loan, a good rate may end up costing them money, warns mortgage lender Resi Mortgage Corporation.

Resi’s Head of Consumer Advocacy, Lisa Montgomery, says borrowers who put so much effort into ‘chasing’ rate should be chasing the service that goes with maximising that rate.

“Any borrower can find a low rate on the market, but if they don’t have easy access to appropriate consumer financial guidance to determine how to best approach and then manage their finances - the savings on that great rate can soon be wasted,” she says.

Montgomery says with personal debt, mortgage debt and interest free loans now so commonplace there is a clear need for individual borrowers to seek tailored lending solutions so they can address all their debt with a clear path to paying it off sooner - and the solution starts with choosing the right lender.

“Although borrowers are now very price conscious - focusing so much on rate, they have been let down by not having a genuine relationship with their lender and as a result, are seeking a more proactive partner. And this is set to become the key market differentiator over the next twelve months,” she says.

Montgomery says despite the big four banks insatiable appetite for writing loans, it will be difficult for them to support those loans with the personalised and detailed level of guidance that each individual requires now so many Australians are so reliant on debt, with many already feeling they have been left high and dry.

She says: “First home buyers and borrowers looking to refinance should use this current environment to shop around for the right mortgage provider who takes the time to consider the bigger picture and has a track record in the local community of empowering their customers to become better financial managers.”

Montgomery says such a personal service solution does exist and is exactly what is provided by many mortgage lenders, credit unions and building societies and also one of the main reasons why consumers starting shopping outside the banks more than fifteen years ago.

“In addition, standard variable rates of those lenders are still significantly below those advertised by the big four banks, providing borrowers with a very valuable long term service proposition,” she says.

Montgomery says all borrowers need to be more active participants in their financial future and that starts with choosing a lender who shares that philosophy.

She says: “Where there is choice in the market in relation to how you are treated as a customer, it is of no benefit unless a person decides to exercise that choice. And for mortgage holders looking for a more complete solution, there’s no better time than now.”

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