Spring is in the air with a noticeable increase in enquiry for home loans.
Spring is certainly in the air with a noticeable increase in enquiry for home loans. The banks are fighting with each other for market share and some excellent pricing on rates and cash back is able to be achieved at present. Lower than expected inflation figures and soft commodity prices in the logging and diary sectors are keeping rate rises off the agenda at present. The economic commentators are now not expecting interest rate rises until about September next year.
Below is a snap shot of rates on offer as at 10 November 2014 (including specials)
Floating 6.59 (Westpac)
1 year fixed 5.59 SBS Bank
2 year fixed 5.49 SBS Bank
3 years fixed 5.69 SBS Bank
4 years fixed 6.50 Co-operative Bank
5 years fixed 6.19 SBS Bank
Product change- Interest only loans
As property investors interest only loans are often appealing as they can provide taxation benefits. Westpac have recently introduced a 30 year interest only term which is a significant move from the competing banks where 5 or 10 year interest only terms are the norm.
Not happy with your lender or been told no to new lending?
A few weeks ago I was contacted by one of the McPherson Property Management’s clients. The client owns 4 rentals and sought to buy a 5th property. The client had approached her own mortgage broker and was advised the 2 banks holding her mortgages now (she had 2 properties with each bank) wouldn’t approve further lending as she was at her capacity on debt servicing. I analysed the clients information and although the other broker was correct in that the existing (and some other) lenders couldn’t support her aspirations there was in fact a bank that could make it work. As a result my client is now approved and is due to settle on her 5th rental property at the end of November. If you need a review or want to purchase further properties please get in touch.