Mortgage borrowers just received two Christmas in July gifts, with the Australian Prudential Regulation Authority (APRA) and the Reserve Bank of Australia (RBA) both announcing reductions in rates .
What are these gifts and how do they affect you?
Gift 1: APRA are reducing servicing rates!
- What are servicing rates?
- Servicing is the calculation the bank uses to determine how much you can afford to borrow. With APRA reducing the benchmark rate affordability will improve.
- Stay tuned as we expect the banks to roll out the changes in the coming weeks and we will be able to update and help you accordingly.
Gift 2: The RBA have done it again!
- Last Tuesday’s RBA announcement saw their rate cut by another 25 basis points to a historic low of 1%.
- Will the banks pass on the full 0.25% reduction to variable rate customers?
- It will take a few weeks for the new rates to be passed on but if you want to discuss your rates, contact us now (08) 9242 3300 or reply to this email.
To keep you in the loop, here is what some of the banks have done so far:
- ANZ: Were the first to announce that they will pass on the full reduction of 0.25% which will take effect on 12th July 2019.
- AMP: Will reduce their variable rate by 0.20% effect on 22nd July 2019.
- Bankwest: Announced they will reduce their variable rate by 0.19% on 23rd July 2019.
- CBA: Will pass on the full 0.25% reduction for interest only (IO) loans. For principle and interest (P&I) loans they will only pass on a 0.19% reduction starting 23rd July 2019.
- Macquarie: Announced they will reduce their variable rate by 0.20% across the board starting on 18th July 2019.
- ME Bank: Have announced they will reduce their variable rate by 0.15% on 23rd July 2019.
- NAB: Will reduce their variable rates by 0.19% across the board taking effect on 12th July 2019.
- Resimac: Are passing on the full reduction of 0.25% taking effect on 24th July 2019.
- St George: Announced they will pass on a reduction of 0.20% for owner-occupied loans and investment P&I loans while reducing investment IO loans by 0.30% starting on 16th July 2019.
- Westpac: Also announced they will pass on a reduction of 0.20% for owner-occupied loans and investment P&I loans while reducing investment IO loans by 0.30% starting 16th July 2019.
As you can see, getting the best finance deal to suit your circumstances can be quite complicated. So, we suggest a quick phone call on 08·9381·7450 to discuss your options or download our Finance Services information.
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