It has certainly been an interesting two months for Mortgage Brokers. Trying to keep up with all the movements in interest rates by all the lenders has certainly been a task. But we are on top of it.
The RBA has now moved rates in two consecutive months bringing our official rate down to an historic low of 1.00%. Some lenders have passed on the full cuts while some have only passed on part of the cuts. Generally, lenders will take between one – two weeks to pass on the cuts, so we will see lenders rates going even lower in the next couple of weeks.
We are now seeing the standard variable rates below the 4.50% mark and the very basic variable rate below 3.40% with some lenders. We are also seeing the 2 and 3 year fixed rates well below 3.40% and one 3 year fixed rate at 2.99%.
We are also seeing some relaxation on the interest only lending with some lenders allowing up to 10 years again with the initial period 5 years.
From a business perspective, there has been some significant movements in rates. We are now seeing variable rates for under $1m coming down, particularly when secured by residential property. Commercially secured rates are bit higher. But remember, business lending is all about risk to the lenders, so they are never keen to give you the best rate without some significant persuasion. Business rates are calculated using the lenders applicable lending rate plus a risk margin. This is where we can help you get the best deal by doing the negotiating on your behalf.
Please note that the rates quoted are a guide only and may vary depending on your individual financial circumstances.
If you, any of your friends or business associates would like to review their financial situation, remember it’s free. We don’t charge you for our services.