First let’s start with the home loan news.
At the end of April, we talked a bit about home loans, and that it might be a good time to take that next step. What a difference a month makes!
The Reserve Bank of Australia’s latest cash rate drop was 25 basis points. According to RateCity, eleven lenders cut their fixed rates on two-year loans by up to double that, while thirteen have dropped their fixed rates on three-year loans by more than the Reserve Bank’s cash drop, with some cuts as high as 50 basis points.
For more concrete examples, we refer to Property Observer reporting, on 28 May 2013, that Citibank responded to the May RBA rate cut by offering a five-year fixed home loan rate at 5.35%, which Citibank claims is the lowest in the Australian market.
In the Mean Time
According to the Herald Sun on 20 May, Westpac has a one-year home loan rate at 4.79%, and Bank of Melbourne has cut its one-, three-, four- and five-year fixed mortgages as well, with its biggest cut being its three-year, down to 4.95% per annum.
Those are a lot of numbers to throw at you and by no means exhaustive. What it tells us, however, is that banks are in serious competition to secure home loan customers, willing to go to great lengths to get your business. For example, Citibank, as Property Observer notes, is offering a free 60-day rate lock, as well as loan approval in as little as 24 hours. We can’t imagine that Citibank will be alone in offering such amenities.
home loan pic
The time to act may be sooner than later. According to Angelo Malizis, Resi Mortgage Corporation’s chief executive officer:
“The discussions I’ve had with economists is they expect rates to come off a little bit more but as soon as we have one more variable rate deduction they expect fixed rates to start nudging upwards.”
With that in mind, you may want to think about that home loan sooner than later. Fortunately, we here at Full Circle Financial Group are ready to help; if you have any questions or for assistance on a wide array of financial services, please do not hesitate to contact us.
Disclaimer: Please note, this information is generic and not specifically tailored for any individual. It is not intended to take the place of professional advice. Before you make your decision, you should take into consideration your needs, objectives, and circumstances.I created this video with the YouTube Slideshow Creator (http://www.youtube.com/upload)