Recently all the banks increased their variable and fixed rates.
The RBA has kept the cash rate the same for many months now. But the banks have still increased interest rates for home loans, investment loans and business loans.
Why did the banks increase lending rates now?
The banks can change their interest rates at any time, even when the RBA keeps interest rates on hold.
The banks believe the RBA will lift the cash rate in the coming months, so they’re factoring in future increases into their interest rates now.
Another reason is the banking regulator (APRA) may soon tighten lending restrictions across all loans. APRA is worried about “heightened risk” in the housing market and they fear a housing market bubble.
This potential move by APRA will limit banks’ future lending so they are keen to push-up their profit margins now while they still can.
What can you do about it?
Even though we’ve had recent interest rate increases, rates are still at historic low levels. But how do you know you’ve got the best rate for your loans?
Whether you have a home loan, investment loan or business loan, you should always try to negotiate a lower interest rate for these loans.
Also, if you’re coming to the end of your current fixed rate term, it’s the right time to make sure you have the right lender and loan package – and have the best deal in place.
It’s hard to know you’ve got the best deal
There are hundreds of different loan products on the market but no one has time to go through all that information.
It’s good to shop around, and you can use comparison websites, but because lenders call loan products by different names, it can get very difficult comparing apples with apples.
So it’s hard to know you’ve got the best deal. It’s worthwhile working with an independent and experienced broker to save time and get a well-rounded understanding of the advantages of each loan product.
We go a few steps further to help you make the right decision
At Craig Tracey Lending we take time to listen and understand you then we compare all the loan products in the market for you.
But what make us different to other Brokers is we go a few steps further to help you make the right decision.
Your borrowing plan gives you all the information you need
We give you all the information you need in simple language that is easy to understand – we call it your “Borrowing Plan”.
Your borrowing plan is personalised to your specific needs and shows you how to save thousands of dollars in interest, fees and charges over the life of your loan.
Read more here: Your BorrowingPlan
Avoid the paperwork hassle
When you’re looking for a better deal on your loans, it’s the hassle of paperwork and forms that makes things too hard.
Our FastDoc system is 3 simple steps to do the paperwork for you. All you need is internet banking and scanner to save your documents to Dropbox. We then do all the paperwork and complete the forms. FastDoc