
Good Morning,
It certainly was a busy week last week. There are a few lenders still to adjust their rates, as well as a few more dropping their fixed rates into the high 2’s.
The rate war continues as lenders jostle for new business. ME Bank being notable there with under 90% loan to value ratio at 2.88% fixed for 2 years under their members package. AMP have sharpened their rates with lending up to 90% on their pro pack, variable rate at 3.14% AMP’s turn around time is actually pretty good in the current market while ANZ and Suncorp still seem to be painfully slow.
ME Bank have also been very proactive with clients who are coming out of their fixed period and offering the ‘new to bank’ rates which is great news for clients.
As always when assessing a client’s situation, I ensure the scenario is work-shopped with the best lenders, to not only find the best rate and product for their situation but also to understand what that ‘best’ lenders time frames are so a client’s expectation is managed.
Often a client comes to me and has already been through an application process or has an accepted offer on a purchase that the clock is running out on. This plays a significant role in who is the ‘best’ lender for the client. This is part of why I am here and how I help you get the desired results.
I read some interesting data through the week that said that the ACT had the highest retail growth in the country. The shops certainly seem to be busy, though many of my retail business clients have said that things are steady rather than busy or growing. This is certainly in line with the small 1.9% growth noted.
The article also mentioned that building approvals have dropped by around 27% making it the lowest approval level since April 2008. It’ll be interesting to see how it pans out over the next quarter.
There has been a bunch of media around the governments posturing on a perceived lack of reduction in rate being passed on by the banks. I read articles by Switzer and Michael Pascoe around this, with both of these gents slamming the government and the opposition for their commentary.
This is mainly because while the RBA determines the cash rate this is not reflective of what the banks 'buy' their money at. I think that Michael Pascoe's article spelled out things very well and so I have included a link here it's worth a read.
All while a new enquiry into banking is launched by the ACCC on mortgage pricing. It would seem that the banking industry isn’t going to be left alone any time soon. For the sake of those out there who are reliant on what is an already paltry earn on bank deposits, I would hope that there are no further cuts to the cash rate as we get closer to zero or even as thought might happen a negative interest rate would spell very tough times indeed....
As always I am more than happy to health check any loans, to make sure you are getting the best deal.
Have a great week!
Justin
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