Interest Rate Changes
There have been some significant changes in the Mortgage Market over the last couple of months. Some bullet points are as follows:
- For Owner Occupiers
- Fixed Rates are now cheaper than variable
- 2-year fixed rates are presently the lowest
- What we have found to be most beneficial to borrowers is split their loans between fixed and variable, with the majority fixed for 2-3 years giving certainty of repayments. By having the smaller portion variable allows them to have an offset account or make extra repayments to reduce that variable portion
- For Investors
- There has been some significant movement by all lenders in this market
- 2-year fixed Principal & Interest (P&I) 3.88%
- P&I Variable rates are down to around 4.09%
- To obtain Interest only you will need to have a 20% deposit as maximum LVR’s is only up to 80%.
- If your interest only period is expiring, and your LVR exceeds 80%, we are finding that most lenders are requiring Principal & Interest payments and they will not refinance or extend interest only on more than 80% LVR loans
- What interest rate are you currently paying?
- It is always a good idea to continually review your loans as lenders are all now moving rates outside of the official RBA movements
- If you are not paying sub 4% for your owner-occupied home loan, then you are paying too much
- It is neither too costly nor too difficult to change
- The costs to change are minimal as opposed to what you can save
- Do you consider $500 too much to change, if you can save approximately$1,000 per annum in interest over the term of you loan. It can save you a fortune simply by speaking to us.
- We at JR Mortgage Broker & Finance do all the hard work for you. And best of all, it doesn’t cost you anything for us to change your lender
- If you want to chat to us please call us on 0417 749006, 0409 497202 or leave your details here and we will get back to you.