Finance Industry News

what is News In Property Finance

There have been many changes in the past three months.

The RBA dropping the cash rate by .50% has caused quite the stir and continued discussion on lending policies.

Variable interest rates have therefore decreased on average .45%p.a.

The good news is that the servicing interest rate, (or the rate Banks use to calculate your maximum borrowing capacity) has dropped.

In some instances the previous rate was 8%p.a, now it averaging at 6.25%p.a.

So can you borrow more money?

Yes you can. Where the banks remain tight and diligent is on an applicant's spending.Banks will ask you for a breakdown of your monthly expenses, then audit documents supplied, to confirm the figure is in fact accurate.

Previously, this was not as vigorously scrutinised.

What should my current variable rates be?

Home Loan Rate with Principal and Interest repayments
3.30%p.a

Investment Loan with principal and interest repayments
3.75%p.a

Investment loan with Interest Only repayments
4.10%p.a

Fixed rates on offer:

3 years fixed owner occupied principal and interest repayments
3.49% p.a

5 year fixed owner occupied principal and interest repayments
3.79% p.a

3 year Investment loan Principal and Interest repayments
3.86%p.a

If your rates are not in this vicinity, please contact me for a discussion. I may be able to lower your rate at your existing bank, or look to refinance to save you dollars.