Article by Patrick Lynch, Head of Operations at Long Property
From media reports, you’d think the Banks are in retreat. In reality, whilst it may be more difficult now to secure funding, the banks are keen for new business.
How do we know? Because of the offers now available.
Cheap rates and substantial cash-back offers
We are securing P&I home loans from reputable lenders at 3.64%, and Interest Only investment loans are now as cheap as 4.04% (potentially even less if secured by your home).
Interestingly, the major banks are also now offering substantial ‘cash-back’ offers, to incentivise new business:
- ANZ – up to $3,500 for refinances (loans > $700,000)
- CBA – up to $2,000 for refinances, also $2,000 for new investment loans
- NAB – $1,250 for refinances or purchases
- Bank of Melbourne (owned by Westpac) – $2,000 for refinances, also $1,500 new purchases
There are various costs associated with refinancing (e.g. discharge fees, new mortgage registration), but with the above incentives, many of our clients are banking $1-2k just by making a change, and at the same time they are also reducing their interest rates.
Lenders rely on idleness and won’t often pass on these better offers or rates to existing clients.
What to do next?
These offers are only available for a limited time, most are set to expire at the end of November or December. They are subject to assessment, eligibility criteria, and Terms & Conditions.
We encourage regular reviews (at a minimum, once a year) of your lending, as at any time there can be compelling opportunities to improve your position.
Now might be an opportune time. Please get in touch either with myself or Dan if you would like any further information.
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Long Property provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Nothing on our website constitutes legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
