AS SEEN IN THE DINGLEY DOSSIER
Major changes in the banking market have occurred since July, with competition heating up so much some are calling it a war – great for home owners! Most banks have been adjusting rates up and down since that time (despite no move in cash rates from the Reserve Bank). Are you paying too much to your bank? How does 3.99% sound?
Adjustments to existing loan interest rates has been focused on decreasing rates to owner occupied, Principal & Interest loans, and penalizing the rest. In most cases banks have increased rates on loans classified as “Investment Purpose”, at some banks changes have been more directed at “Interest Only” loans.
Please note we have seen instances where banks have incorrectly increased the interest rate on client loans. We encourage everyone with an outstanding loan to check their interest rates at this time, with particular note taken of changes to your rate paid since July. If you wish to initiate a rate review discussion do not hesitate to call your broker. Your bank may have made a mistake, even if there is no mistake your loan may no longer be the best or most appropriate for you.
In this time of rapid policy changes there are more differences between banks than we have seen in more than a decade. Competition is high, with some excellent ‘special deals’ on offer from banks at the moment in relation to your owner occupy home loan.
At Dingley Village auctions recently the auctioneers can be heard to be loudly proclaiming “lowest interest rates ever” – that is not just real estate talk! Your lucky number in this spring racing carnival may well be 3.99%, a variable interest rate half what was being paid in 2008. We are seeing many cases at the moment where refinancing of existing loans is appropriate and sensible.
Perhaps a Spring clean review of your lending is in order?
*Note interest rates available will vary according to individual personal circumstances and lender and product chosen.