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Banks have reduced their fixed-rate home loans

Richard Symes

Banks have reduced their fixed-rate home loans

By Richard Symes | 02 October 2014

It seems we are in the midst of a mortgage war with many of the big banks reducing their fixed-rate home loans to all-time lows.

Blogger: Richard Symes, CEO, Credit Repair Australia

The recent reduction from CBA has seen their more popular three-year rate drop 15 basis points to 4.94 per cent, aligning with the National Australia Bank and ANZ. Meanwhile, CBA’s four-year rate has fallen 50 basis points to 5.09 per cent.

This is not the first time the banks have reduced their rates in recent times.  In July, the big four reduced their five-year fixed mortgage rates to record lows below five per cent. This decision has already had an impact on the market as borrowers seek to lock in low rates.

We believe this is great news for everyone, whether you’re a first home buyer looking to enter the property market or a budding investor wishing to expand their portfolio. These new rates are clearly a welcomed relief.

Recently, CBA's general manager of home loans, Clive van Horen was reported within a major metropolitan paper as saying that the share of new mortgage customers taking out a fixed-rate loan had increased from 13 per cent to 20 per cent.

It’s no great surprise that this has led to a spike in people looking to take advantage of the great terms the banks are currently offering. If you are one of those people, you may want to spring clean your credit report prior to applying for pre-mortgage finance.

Understanding what is on your credit file can go a long way to ensuring that you gain mortgage approval, and that you are offered the best possible terms.

We see thousands of Australians denied finance and their opportunity to secure their dream home diminished because of a problem related to a black mark on their credit report. In most instances, clients didn’t even know there was an issue. In some cases, they had placed a deposit on a home and subsequently learned that they’re unable to get finance. If the cooling-off period has also been waived, the dream of purchasing a property can become a nightmare.

To be sure you aren’t surprised like many others, consider a credit health check prior to seeking finance. There are many ways to check the health of your credit report including:

•    Veda Advantage – This is the largest credit reporting agency in Australia. Everyone is eligible to a free copy of their credit file. Veda will provide you with your credit file within 10 days if:
o    You haven’t applied for your credit file in the last 12 months
o    You have been declined consumer credit in the preceding 90 days
o    You have requested a correction to your consumer credit information and that correction has been made

Alternatively, if you don’t meet the criteria you can order a copy for $69.95 including GST. Veda will dispatch a copy of your credit file within one working day via email, fax or mail.

•    Dun and Bradstreet – They are the second largest credit reporting agency in Australia. Similar to Veda Advantage you are entitled to a free copy of your credit report to be received within 10 days. Alternatively, you can opt to pay a fee for their Fast Track service, which costs $30 and provides you with your credit file in one business day.

•    Credit Repair Australia – We can obtain your Veda credit report free of charge (if you meet our criteria). With your permission, we can download your credit report instantly, analyse it and provide an in-depth assessment of the results.

Once you have your credit report, you are well on your way to determining if there are any black marks, and dealing with them before they cause obstacles to your real estate goals.



About the author

Richard Symes

Richard Symes

Richard Symes is the CEO and founder of Credit Repair Australia, the leading provider of credit and debt solutions. Richard pioneered the credit restoration sector and developed Australia’s first credit restoration process over a decade ago, allowing Australians to have black marks completely removed from their credit report. In 1999 Richard also played a pivotal role in using new Australian laws to develop workable solutions for people struggling with debt. Known as Credit Repair Australia’s debt solutions, these options now allow Australians to pay back their debts at an amount that is affordable, which may not include interest or paying the full amount of what is owed.

“We are good at what we do because we believe in what we do. We enjoy helping people get their lives back, especially when they are affected by their credit rating. We built Credit Repair Australia with one purpose in mind, to get results that can give people back control of your life.”

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Banks have reduced their fixed-rate home loans
Richard Symes
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