Loan rate update - September 2018
Recent weeks have seen movement in both home and business loan interest rates. Our lending specialist, Shaun Massie of mobilelender.com.au, has provided this summary for our clients and noted some points worthy of consideration if you currently have a loan.
Home loan rate movement
In the last couple of weeks, three of the four major banks have lifted their variable rates on both owner occupied loans and investment home loans. These rises are around 0.14%. NAB is the only major so far not to raise rates. In addition, many second tier banks and other lenders have also increased their rates. This has been occurring for the last few months however, as they don't get as much media attention as the major banks, if any, we are less likely to hear about it.
Over the next few weeks, if you hold a loan with one of the major banks, you will start to see the increase taking effect with increased rates visible on your loan statements and internet banking.
It is worth noting that spring is also a time when banks traditionally ramp up their marketing activity to entice borrowers to refinance or establish new loans.
Whilst this news sounds bleak, Shaun notes that despite increased variable rates, many banks are still offering competitive interest rates, both variable and fixed, with some also offering incentives such as cash back and reward point offers. As such it is a great time to review your current loan and see what other options may be available to suit your personal situation to ensure you minimise your debt and maximise your financial position.
Your home loan is likely to be the biggest financial commitment you will ever make so it is critical to keep it current by having it professionally reviewed regularly. As a general rule currently, if you are paying an interest rate that doesn't start with a 3 then you are paying too much. It's something that is so easily overlooked every month, so take a moment to check your current rate, you may be surprised. The potential savings are too great to ignore.
Business loan rates
Many lenders have already started to raise rates on business loans over the past six months also. As this doesn't receive the same media coverage many business owners may be unaware of any change to the cost of their loans. It is important as a business owner to review your current lending position regularly.
Shaun and his team, have assisted many O'Brien clients in saving thousands of dollars in interest on property investment and business loans.
They can provide you with a market comparison based on your personal or business needs and if needed assist you with refinancing or commencement of a new loan quickly and easily.
Please speak to our team regarding your personal needs and we can advise you on the best pathway and put you in touch with Shaun for a no-obligation review.
Call 03 8850 3333 or email email@example.com.