Anyone paying for a mortgage loan will have listened carefully to the RBA’s suggestion that anyone paying at interest rates over 6% on the loan for their home, is paying above the necessary rate. Furthermore, they suggest that homeowners with a mortgage loan go back to their bank so they can consider refinancing the deal. Mortgage brokers in Kwinana will be keen to hear from people who want help in looking at the deals that are currently available.
How the Figures Were Assessed
The RBA compared analytical bank lending rates to the real interest rates that borrowers are paying on loans against their home and the ongoing cash rate.
When comparing the three sets of rates over the last 10 years, it clearly shows that the margins that banks expect have boosted significantly after GFC. The figures show that indicative rates offered by the banks have remained over the 6% mark. The suggested real rates are usually the standard variable rates. The next conclusion is that the real rate that homeowners are paying to clear their current home loans has dipped under the 6% range just the once since the middle of 2009 and the rate for cash then was just 3%.
This means that the banks are offering significant discounts at the moment when compared to the standard or normal rate, that is always variable and is accessible by most home loan providers. Borrowers who are receiving rates at a discount are benefiting.
To see what major banks are currently charging as the standard variable rate you can look at the Commonwealth Bank and ANZ who are currently working at 6.4%. NAB has their figures set at 6.38%, while Westpac is the highest of this selection at 6.51%.
Nevertheless, the Commonwealth Bank claims that its typical and standard variable rate is purely a rate referenced by the bank which then selects different mortgage rates for individual customers. They don’t expect anyone pays the bank’s 6.4% standard variable rate.
As a comparison, Easy Street and State Custodians, which are both non-bank lenders, have rates which are variable and under 4.99%, currently on offer. The best way to find out which deals are available for you is to speak to your mortgage broker in Rockingham, Kwinana, Baldivis or wherever your location is.
The RBA figures also show how steeply that fixed rates over three years have dropped in recent years, keeping it matching with the maturity swap rate considered over three years.
All of the major banks are currently offering a 4.99% deal for a fixed-rate over two years. Some of the offerings from smaller lenders are at the same rate but fixed for three years.
While the difference between cash rates and real rates for lenders are staying quite healthy, speaking to a professional mortgage broker is the best way to find out what is available for you.