Powered by MOMENTUM MEDIA
subscribe to our newsletter
Rate war spurs further discounts

Rate war spurs further discounts

Historically low rates and a competitive lending environment are allowing brokers to negotiate even better deals for their clients.

Smartline Personal Mortgage Advisers believes competition between the banks and non-bank lenders is at an all-time high, resulting in record low interest rates and strong levels of home loan activity.

The reason for this is very simple – the lenders can afford it, according to Smartline’s executive director Joe Sirianni.

Advertisement
Advertisement

“The cost of funds has reduced significantly for the banks in recent times and they are enjoying healthy margins, which gives them room to move when it comes to the rates they offer,” Mr Sirianni said.

“Competition is at an all-time high and most lenders are more than prepared to sharpen their pencil and, as a result, are offering some good deals,” he said.

“Back in 2008 we were usually impressed if we managed to negotiate a 0.70 per cent discount off a bank’s standard variable rate.

“We are now negotiating rate discounts that we would not have dreamed of in 2008.”

Mr Sirianni said now is the time for borrowers to put their brokers to work.

“Remember, their service is at no cost to you and the savings can be very surprising.”

 

 

 

Rate war spurs further discounts
mortgagebusiness

 

Latest News

Another challenger bank has been granted a banking licence by the prudential regulator. ...

Almost half of prospective home buyers are unfamiliar with key mortgage terminology, according to new Westpac research. ...

Small businesses would be “unjustifiably disadvantaged” if limited recourse borrowing arrangements were to be abolished, the CEO of a c...

FROM THE WEB
podcast

LATEST PODCAST: The Third-Party Lending Report in summary

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?