Home » BTC article

BTC article

Hello BTC,
 
I just thought it may be helpful for you all if I put together a bit of a post interest rate rise summary so can see where all the banks finished in the pecking order and hopefully get a better understanding of your options.
 
Personally I find it very frustrating that the Media do not give an accurate representation of the market, and certainly the press releases from the major banks do not tell you the full story either.
 
The most important thing to note is that in the press they always quote the banks “Standard Variable Rates” or SVR. You should not actually be paying the SVR as all banks have products or discounts available that will take you to at least 0.7% lower than the variable rate.
 
 If you are paying the standard variable interest rate this could be costing you $2,700 per year or a massive $67,000 over 25 years????
 
At the time of writing there are a number of smaller lenders that have not yet declared their hand. But there are some that have only chosen to pass on the 0.25%. Below is a summary of the major banks changes.
 
2nd November Rate Rise (RBA 0.25%)
CBA
Westpac
St George
Nab
ANZ
Banks Rate Rise
0.45%
0.35%
0.37%
0.43%
0.39%
Standard Variable Rate
7.81%
7.86%
7.80%
7.67%
7.80%
Discounted Variable Rate*
7.11%
7.16%
7.10%
6.97%
7.10%
 
So what does this all mean?
It is very important that you take time to assess your current position. Unfortunately a lot of people do not make it a priority and will look when they get around to it. We all have internet banking these days, so go on have a look…. You know you want to…
 
Things to consider
 
1.       What is my current interest rate?
2.       Is my Lender charging me unnecessary fees?
3.       Can I get the same thing elsewhere and save on fees?
4.       Is there a loan product that is better suited for my needs?
5.       Do I need the security of a fixed interest rate
 
You can and should talk to someone to find out if you are getting a good deal. It may be time for a home loan health check. I offer a free Home Loan health check For Balmoral Tri Club members so why not give me a call to get some reassurance.
 
I also have a free E-Book for home buyers, it is a great little book if you are buying your first home or a refresher if you are buying your second or third… - If you are interested feel free to shoot me an email.
 
See you at track
 
Regards
David Johnson (aka Johno)
Qualified Mortgage Broker & Mortgage Planner
Noble Financial Services
m: 0412 218 568
 
* most banks will charge an annual fee to give this discount, or else you could choose a basic loan with low fees and get a similar rate