00:02Property investor Kevin Wong is hanging on in an increasingly tough market, partly thanks
00:08to being able to secure a lower interest rate with his bank.
00:12It was a discounted rate and it was at sort of like a promotional period where they offered
00:18this particular rate and so we just jumped on it.
00:23Competition in the mortgage market is heating up as the number of customers drops off.
00:27Dozens of banks have dropped their variable rates in the last month.
00:32Applications for home loans have fallen sharply, especially for investors after the government's
00:37tax changes and three interest rate hikes so far this year.
00:41We saw CBA cut, we saw the other banks basically follow, but then if you go into the last week
00:47of July, Macquarie came out and cut again.
00:50The Commonwealth Bank has the largest slice of the mortgage pie, followed by Westpac,
00:55NAB and the ANZ Bank.
00:56But they're all coming under pressure from Macquarie.
00:59If your rate doesn't start with a five, you definitely could be getting a better deal.
01:03Also cash back offers are a real thing, so we're seeing offers up to $4,000 for switching
01:11your rate.
01:11Economists widely expect the Reserve Bank to increase the cash rate at least once more
01:16this year.
01:17Analysts warn customers need to be on their toes about how lenders will claw back lost
01:23cash from higher borrowing costs.
01:25So where do they make their money?
01:28They make it on the people that are apathetic and not aware where their rate is relative
01:34to the new rate.
01:35A wake up call for borrowers.
01:37A wake up call for borrowers.
01:37Twoprehendlishers.
01:37...
01:41A wake up call for borrowers.
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