What is an interest-only home loan?
Interest-only mortgages require much lower repayments than traditional ‘principal and interest’ home loans. Interest-only home loans are particularly popular with property investors who want to rely on capital gain to make a profit.
Is my bank passing on the RBA’s interest rate cut?
Some of Australia’s biggest mortgage lenders are not passing on all of the Reserve Bank of Australia’s (RBA) historic rate cut for August 2016. The RBA has cut official interest rates to a new record low level of just 1.5 per cent. Many lenders still have their standard variable home loan rates set at well over 5 per cent.
Are any banks passing on the RBA rate cut?
The big four banks have angered many home loan borrowers in the last week. The big four have cut their variable home loan interest rates by about half of the Reserve Bank’s 0.25 percentage point August rate cut. However there are lenders who have delivered the full 0.25 percentage point rate cut to their customers. And variable home loan rates have reached a new historic record low level in Australia.
How to secure your own massive rate cut
Big bank profits are moderating as a result of increased competition in the home loan market. Borrowers are demanding and getting big rate cuts, up to 1.7 percentage points, from their lenders. To get a rate cut, you need to know what the competition is offering.
Help! I’m in mortgage stress!
Despite record low interest rates, many Australians are reporting they are struggling to keep up with home loan repayments. With many banks failing to pass on the full RBA rate cut, what can borrowers do to lower their mortgage bills? Contact us to find out more.