Interest Rates, Property Finance Update

It was ‘steady as she goes’ for the Reserve Bank, as they announced no change to official interest rates yesterday. The consensus amongst economists is that this approach is likely to continue unless there is marked deterioration of market conditions either here or in Europe. We now watch and wait for the big four banks reaction to this, given that they recently ‘de-coupled’ themselves from the RBA’s interest rate movements. At this stage, we should ‘cross our collective fingers’ that there is already so much expectation of a Greek default, that when it happens it has little effect on international capital markets.

Fixed rates continue to offer good value to borrowers, with sub 6% three year rates still available. Variable rates continue to hover around 6.5%.

As is normally the case, the lenders offering the most competitive rates are the busiest. These lenders are taking three to four days to approve an application. Given that lending criteria is more stringent now, it is important to discuss your financing needs with an experienced mortgage broker who can arrange the most suitable package before you start making offers or bidding at an auction.

Please contact Michael Ryce TODAY from The Mortgage Professionals if you would like to explore your financing options. Michael has been arranging home loan packages for both property refinance and purchase on the Lower North Shore for more than 15 years. Representing more than 20 of the most competitive home loan lenders in Australia means you know you will be getting a low interest rate with all the flexibility and features you need. Michael can be contacted on 0416230092 or at mryce@tmps.com.au.