The Reserve Bank has reduced the official cash rate by 25 basis points to 3.50% as at 5th June, 2012.
The RBA have made their decision based on a number of key indicators including stagnating global growth levels and falling employment in the US. Manufacturing activity in Chinabarely grew in May and fell to a three year low in Europe.
This is welcoming news for consumers, retailers and particularly for everyone thinking of buying or selling property. Existing borrowers also should consider testing what their current lender is offering, simply because their is so much competition between most of the banks and other lenders. Borrowers should take their time and get proper advice and information regarding which lenders have the most appropriate finance package to meet their particular requirements. A qualified mortgage broker generally has at least 25 to 30 lenders at their disposal to assist customers compare all the products from these lenders.
The official interest rate is now 3.5%, down from 4.25% in early May, and the majority of home loan customers in Australiaare sitting idle on their home loans with a standard variable rate (SVR) somewhere around 7.05% at present. This “average” SVR should reduce in the next few weeks as lenders take their time and pass on what they want to since the recent annoucement by the RBA. If your interest rate is above 6.20% pa variable after rate cuts are passed on, you’re simply paying too much! We have some lenders on our panel with variable interest rates under 6% pa. There are also some great fixed interest rates on offer for those borrowers looking for some stability with their repayments. These fixed rates, from several lenders, are also under 6% pa for terms from 1 to 3 years.
Remember, there are large cost variations between the banks and other lenders in areas such as:-
- MORTGAGE INSURANCE PREMIUMS
- MAXIMUM AMOUNT ALLOWED ON LUMP SUM REDUCTIONS AND VARYING TERMS
BETWEEN LENDERS ON FIXED RATE LOANS PLUS DIFFERENCES IN RATE LOCK FEES
- COST TO VARY/SWITCH LOANS BETWEEN DIFFERENT PRODUCTS
- VARIANCES IN ANNUAL PACKAGE FEES
- VARIANCES IN PROFESSIONAL PACKAGE INTEREST RATE DISCOUNTS RIGHT NOW
DUE TO DIFFERENCES IN COST OF FUNDS
IF YOU ARE SELF-EMPLOYEDAND HAVE A GOOD CASH FLOW BUSINESS, EVERY BANK WILL BE AGGRESSIVE TO OBTAIN THOSE FUNDS AS THEY ARE ALL CHASING DEPOSITS!!
Click here to contact Cooper Financial Connections today! We can help find you the loan you deserve.