Is ‘ultra-cheap’ funding on its way out?
A second big four bank has gone and hiked its fixed home loan rates for owner-occupiers. ...
Furious activity in the home finance sector has created a smorgasbord of offerings for home buyers, says leading mortgage broker Loan Market.
Loan Market chief operating officer Dean Rushton said the latest rate movements had prompted some major changes in pricing offered by banks and other lenders.
Mr Rushton said while rising rates were always of concern to mortgage holders, there were still plenty of competitive deals to be considered.
“The RBA’s decision to lift the cash rate by 0.25 per cent to 4.75 per cent led to all the major banks increasing their variable rates by larger margins than the central bank,” he said.
“This was not good news for home owners in general but it has resulted in increased special offers on certain products and for selected customers.
“There’s literally a smorgasbord of lending product and pricing for home owners to consider.
“And this wide range of offers has also provided the opportunity for mortgage holders to even engage in a bit of Bali-style bartering.”
Mr Rushton said while the standard variable interest rates being offered by the major banks were between 7.67 per cent and 7.83 per cent, there were a large number of variable rates on offer for less than 7.0 per cent.
“There are also new three-year fixed rates on offer for between 7.0 per cent and 7.10 per cent,” he said.
“So there is a lot out there in the market for home owners and would-be home owners to consider with more changes to come as smaller lenders make their decisions."