June 27, 2019 by Adele Fairchild
Since the decision early in June by the Reserve Bank to reduce the Cash Rate by 0.25% to 1.50%, we have seen a reduction in variable rates across our panel and these rate adjustments have now all flowed through to the respective lenders’ existing clients.
We now have access to basic variable loans from 3.38% for Owner Occupied dwellings (3.34% for lending over $1,000,000), with many options at 3.5% or below. Also, 2 and 3 year fixed rates for Owner Occupied properties are available at 3.5% or lower through a number of our lenders at present.
We have also seen some significant downward movement for interest rates for Investment properties with variable rates available from 3.49% and 3 year fixed rates from 3.69% for loans with principle and interest repayments which is a marked improvement from where the rates were only a few months ago.
Accordingly, if you have a home loan that has an interest rate of over 4.00%, you do need to contact us for a rate review and home loan health check. A 0.50% interest saving on a $400,000 loan is the equivalent of $2,000 per year after tax. Even in the current $37,001 - $90,000 tax threshold for the 2020 financial year this is like telling your boss you don’t want a $3,000 pay rise!!
Please note rates quoted are current at the time of writing but they are not comparison rates.
Colin
