It's the second Friday of the month and ANZ have made their rate announcement.
They're passing on a rate cut of 0.37% on residential mortgages. Here's a link to their announcements. Their standard variable rate will now become 7.05%.
As a summary of what various lenders have passed on from the RBA's 0.50% cut (this is obviously not a comprehensive list):
Lender Change New SVR
________________________________________
ANZ -.37% 7.05%
BOM -.41% 6.99%
CBA -.40% 7.01%
ING -.30% 7.02%
NAB -.32% 6.99%
Westpac -.40% 7.06%
Most of the new rates become effective next Monday so more comprehensive data will become available then. Fixed rates also tend to be dropping at the moment. They're changing so quickly it's hard to keep up right now.
Keep in mind that the figures above are essentially rubbish. Comparing a standard variable rate is useless because each of the above lenders have various discounted loans and professional packages significantly lower than their SVR.
Discounts are also offered based on the total loan amount and the LVR. Additional discounts are also granted depending on the applicant and the deal. It's completely impractical to try create a comprehensive list for borrowers to try figure it out.
Generally speaking, I feel that the cheapest deal from lenders is primarily about the size of the discount that can be obtained. Please note that 'cheapest' does not necessarily mean 'best' or 'most apporpirate'. Different borrower requriements will influence this.
A lender advertising the lowest SVR is really blowing smoke, because next month it could change. It's also meaningless if they're only offering small discounts when compared to their compeditor. A loan with a large discount margin is more likely to be cheaper in the long run than a lender offering little more than a low rate today.
The outlook is also looking confusing for borrowers. On one had there's predictions of additional rate cuts in the next 12 months due to various global uncertainty factors. On the flip side, unemployment figures are particuarly low this week, suggesting that the RBA may have been premiture to drop rates by so much last week. In the absence of additional indicators either way, I think the RBA will sit still for a while whilst they try to determine what the net effect of all this data is, and what's the eventual result of what they've already done.
They're passing on a rate cut of 0.37% on residential mortgages. Here's a link to their announcements. Their standard variable rate will now become 7.05%.
As a summary of what various lenders have passed on from the RBA's 0.50% cut (this is obviously not a comprehensive list):
Lender Change New SVR
________________________________________
ANZ -.37% 7.05%
BOM -.41% 6.99%
CBA -.40% 7.01%
ING -.30% 7.02%
NAB -.32% 6.99%
Westpac -.40% 7.06%
Most of the new rates become effective next Monday so more comprehensive data will become available then. Fixed rates also tend to be dropping at the moment. They're changing so quickly it's hard to keep up right now.
Keep in mind that the figures above are essentially rubbish. Comparing a standard variable rate is useless because each of the above lenders have various discounted loans and professional packages significantly lower than their SVR.
Discounts are also offered based on the total loan amount and the LVR. Additional discounts are also granted depending on the applicant and the deal. It's completely impractical to try create a comprehensive list for borrowers to try figure it out.
Generally speaking, I feel that the cheapest deal from lenders is primarily about the size of the discount that can be obtained. Please note that 'cheapest' does not necessarily mean 'best' or 'most apporpirate'. Different borrower requriements will influence this.
A lender advertising the lowest SVR is really blowing smoke, because next month it could change. It's also meaningless if they're only offering small discounts when compared to their compeditor. A loan with a large discount margin is more likely to be cheaper in the long run than a lender offering little more than a low rate today.
The outlook is also looking confusing for borrowers. On one had there's predictions of additional rate cuts in the next 12 months due to various global uncertainty factors. On the flip side, unemployment figures are particuarly low this week, suggesting that the RBA may have been premiture to drop rates by so much last week. In the absence of additional indicators either way, I think the RBA will sit still for a while whilst they try to determine what the net effect of all this data is, and what's the eventual result of what they've already done.