Consumers Should adopt A Wait And See Approach From Lenders

Industry watchers have stated that home loan borrowers are lucky as they are able to wait for the best available deals from lenders.

Banks are willing to match rates

Mitchell Watson analyst from Canstar Cannex stated that consumers were the fortunate ones even though the stock market had taken another hammering.

Mr. Watson also stated that banks were willing to match competitors' rates, and that consumers should ask for a better deal than what they are being offered.

RBA says rates are at the 'correct level'

Phillip Lowe RBA's assistant governor felt that interest rates were currently at the correct level, and that they would not be dropping rapidly.

The RBA recently dropped interest rates by 25 basis points for the first time in over 2 and a half years.

Some economists felt that this was the first of many, predicting that rates could fall by as much as 100 basis points over the next twelve months.

Three of "Big Four" banks followed the RBA

Most of the big four banks have passed on the full rate cut of around $50 on an average $300,000 loan, apart from the NAB who only reduced their rates by 20 basis points. However their rates are still the cheapest of the major banks.

The big four banks are offering fixed rates between 6.30 and 6.49 per cent and Suncorp is offering 6.2 per cent.

Craig James Commonwealth Securities chief economist stated that it was highly unlikely that the RBA would reduce rates again when the board meets in December.

Queensland's unemployment rose to 144,000 in October. Queensland has a growing unemployment problem with 6000 people being unemployed since the start of this year.

Get your quotes now

What to find out more? Enquire now

Published on November 11-th, 2011 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
Enquire about Home Loans
Please enter the estimated value of the property

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.