news

Rates are more flexible than you think

By Staff Reporter

Investors concerned about lenders passing on the full rate cut should remember that they have many options, according to a chief economist.

“It is a free market around there and people can look around for the lenders with lower rates. There are some small lenders that passed on the full amount,” AMP’s chief economist, Shane Oliver, told Smart Property Investment.

However, even those without an intention to head to another lender and go through the associated fees or administration, may be able to reduce their rate further.

One thing people can do is to speak to their bank manager, he suggested.

“They’ll often find that there is a bit of flexibility around that headline number.

“That [headline number] is just a base rate that they start from and adjust to suit individual circumstances,” he said.

Banks are usually open to discussion and investors may find that the interest rate is more flexible than the number might suggest, particularly “If they have a big mortgage or are quite a loyal customer,” he said.

However, there is choice in this market, and “at the end of the day it doesn’t matter if the banks pass on 80 per cent or 100 per cent, the Reserve Bank will just keep cutting until they get the mortgage rate that they want.”

Rates are more flexible than you think
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%