Homeloan interest rate - below 5%?

Hi

Recently I read a news article the reserve bank chairman or some fella saying "if you're paying above 4.9% you're paying too much".

He said we should call the bank and ask for a lower rate than 4.9%. Is it that easy?
 
The rate you can negotiate will depend on the lender, the loan amount and the LVR. I'd suggest that the statement is reasonably accurate for loans above $250,000 and 80% LVR or lower; we're often negotiating quite a bit better than 4.90% in these circumstances.

If it's a 95% loan of $200k, the rate is still likely to be above 5%.

Call the bank or your broker. It's usually fairly quick and easy to do.
 
It's a general headline grabbing statement that holds no weight.

As Pete said - it's usually all dependent on loan size and LVR.

Cheers

Jamie
 
Yep another off the cuff comment from someone who has no idea about how the lending market is going right now. Having said that, I agree with Peter that if you are below 80% and above $250k, below 4.90% should be easy to achieve.
 
<5% for <90% LVR >$250k

Should be able to get a better rate then 5.9% even at $167,000. But remember rate is only 1 small piece of the pie, don't be fooled.

Edit - I'm sure it was 5.9% before, but even 5.45% could be low.

But it's not really that bad a rate for the loan amount, need to tell more...

- Are you paying annual fees?
- Are you paying monthly fees?
- Do you have an offset account?
- Does the offset accout have fees?
- Then there is the technical side of is the lender suitable, cash out etc.
 
Yep another off the cuff comment from someone who has no idea about how the lending market is going right now. Having said that, I agree with Peter that if you are below 80% and above $250k, below 4.90% should be easy to achieve.

Off the cuff comment from someone who has no idea? LOL, what are you? Have something against me personally? LOL. You're like a petty old granny for no reason.
 
Off the cuff comment from someone who has no idea? LOL, what are you? Have something against me personally? LOL. You're like a petty old granny for no reason.

Although I don't like Aaron, I don't believe he wasn't talking about you personally. I would think that he was referring to the RBA Chairman or some fella who you referred to in your OP.
 
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Off the cuff comment from someone who has no idea? LOL, what are you? Have something against me personally? LOL. You're like a petty old granny for no reason.

I think Aaron was referring to the "reserve bank chariman or some fella" you had in your first post..... not you.


The Y-man

ps Brady beat me to it!
 
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