Why It’s Now A Great Time To Review Your Home Loan And Borrowing Options
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?