Last week the Reserve Bank again cut interest rates (after also doing so in June), reducing the official cash rate to an all time low of 1%. Many lenders have passed on both cuts in full (or very close to), meaning we have some amazing rates available to us right now. Variable rates from around 3.24%, and fixed rates as low as 2.99%, the lowest rate we’ve seen!

In addition to the rate cuts, the financial regulator, APRA, has also eased its policy around how banks assess a borrower’s lending capacity. Prior to this change, even with rates at say 3.5%, lenders were forced to assess borrowing capacity at around 7.25% upwards. With the recent policy change, lenders are now able to reduce this benchmark rate, meaning the borrowing capacity of many has increased significantly overnight.

There has never been a better time to review your home loan rate, or to revisit your options to assess your borrowing capacity. Our mortgage broking service is a at no cost to borrowers, so why not speak to us for a free review of your position?