Home loan rate

Quick question for the lurking brokers or other people in the know.

I have a friend (honest I do!) who is applying for a new loan - first home owners borrowing approx $500,000. Their mortgage broker said that most appropriate loan for them had a 5.98% interest rate (which had reasonably flexible loan with full offset facility etc). Should they be able to be getting a better rate than this currently?


There are a lot of very important factors to consider with any loan product.
The rate is not the number one factor. Nor the number 2 or 3, in my opinion.
imo its a fair enough rate.

but to tell a tale and in line with Robs comments...

I've got a deal on my desk where anz is kind enough to be charging 13% on a commercial loan (ouch.)
borrower is constantly late with payments, defaults, court judgements etc. ANZs issued a notice of repayment demand which expired a week ago - hes late with getting me info as well. it just doesnt compute for some. Dont know why.

we've placed it significantly lower than anz but the point is you think he going to whinge about 20 points here or there or be happy hes not losing everything and keep what hes got?

What I told him quite candidly is to forget the 6% as he stuffed things up himself and beggars cant be choosers.

sometimes depending on the circumstances you lost your power to choose and negotiate due to your actions... dont let it happen to you
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Whats been said already ...............rate isnt a major, but I will answer the queston directl

5.98 is quite good, depends whats on the hook and who the funder is too though ! There are many a lender where the deal is nice on the surface..............till u try and move or change things, then the transformers strike :)

depending on the Loan to value, a 100 % IO loan with proper offset is possible down to as low as 5.72 ( but more like 5.82 assuming they dont have a 25 % deposit ) with someone like the NAB, with a known funding base and defined exit cost