The Reserve Bank of Australia (RBA) board members cut the official cash rate to 1.50 per cent – a new record low.
Whilst many experts thought the rate would remain on hold, the June quarter inflation figures were well below the RBA’s target band of 2-3 per cent, so the RBA to action.
But the important question is, will the banks pass on the rate cut to consumers? And will they pass the interest rate cut on in full?
So far, the following lenders have announced interest rate reductions;
It’s not all about the interest rate
Whilst a low interest rate is the ideal, there are other factors to consider when choosing a home loan lender.
Consideration should be made to;
- Term of the loan
- Flexible credit policies that suit your situation
- Offset account availability
- Fixed or variable interest rate
- Branches and online access
- Honeymoon rates and when they revert back to a higher interest rate
- LVR – Loan to Value Ratio
- LMI – Lenders Mortgage Insurance
- Customer support from the lender
Why the lowest interest rate isn’t for everyone?
As Mortgage Brokers in Sydney and the Central Coast, we often see consumers shopping around for the lowest interest rate, but the biggest contributing factor to securing a home loan is actually credit policies.
Everyone is different, we all have different requirements, history and future plans. In many cases, it’s actually the credit policy of the lender and your financial situation that will determine your interest rate. As a Mortgage Broker, we can often secure a lower than advertised interest rate for our clients because we can negotiate with the lender directly on your behalf. We understand credit policy and the lender’s appetite – so having Mint Equity in your corner will give you the best chance of approval.
Consider us your personal shopper
With the influx of interest rate comparison sites and DIY home loans, there is a misconception that you have to do the work yourself to find the lowest interest rate. As a Mortgage Broker, Mint Equity goes interest rate shopping every day – it’s what we do. So rather than having to trawl multiple bank websites and interest rate comparison sites, just give us a call and we’ll be able to tell you want interest rates are available for your situation.
To find the best interest rate, give Mint Equity a call and we’ll do the hard work for you.