The Reserve Bank again lifted the official interest rate and the experts predict the only way is up but is there a way to bring your payments down?
The big four banks have cornered 90 per cent of the new mortgage market but staying with them could be costing you a fortune.
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Shaun Cornelius from Infochoice has compared the big banks offers against the non-bank lenders.
"When we summed up the potential savings we came up with the number of around $6.1 billion per year, that's interest and fees that they could be saving in a year," he said.
"Generally the big four are less competitive than what they were however they've picked up market share.
"Average potential savings per customer we calculated at around $3,800 per year."
Infochoice identified four non-bank lenders as the cheapest home loan companies around, State Custodians, Ratebusters a purely online mortgage provider, Home Start a provider set up by the South Australian Government and My-Rate.
Kevin Sherman is from MyRate, they operate from small offices in the city with lower overheads and no branches to run.
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It can afford to undercut the banks on a standard variable home loan.
"If you consider we're about 1 per cent cheaper and you actually run the numbers on a standard home loan of around $300,000, consumers could save around $80,000 off the life of their loan," he said.
"Or pay it off three-and-a-half years sooner."
In credit cards MECU, one of the country's largest credit unions came top, with its low rate Visa card at 9.14 per cent.
Bankwest Lite MasterCard was a close second at 9.99 per cent.
But if person loans are what you want, Infochoice ranked the Hunter United Credit Union's new car loan number one.
The Australian Central Credit Union at 7.86 per cent for a new car loan was close behind.
"In fact there was a 34 per cent difference in terms of that savings potential including fees and interest on car loans," Shaun said.
Home owners will have to find an extra $50 a month for an average loan of $300,000 and with interest rates likely to go only one way up, it is time to look around.
For more information visit www.infochoice.com.au.
