It's a great time to be a borrower: InfoChoice's Vadim Taube

It's a great time to be a borrower: InfoChoice's Vadim Taube
It's a great time to be a borrower: InfoChoice's Vadim Taube

GUEST OBSERVATION

Since home loan rates have hit new historic lows in July after two 0.25 percentage point rate cuts from the Reserve Bank in the last two months, now is a great time to be a borrower.

Never before have we seen home loan rates this low. 

The property market is showing early signs of recovery, regulators have eased home loan serviceability guidelines and lenders are cutting rates.

The fees involved in refinancing have come down a lot in the last few years and lenders are actively competing for business.

In short, and depending on your personal situation, conditions seem quite attractive for borrowers and home buyers right now.

There are now so many lenders offering variable headline home loan rates under four per cent, it really is the perfect time to borrow.

And there is an increasing number of lenders going under three per cent, which is quite amazing.

The lowest advertised home loan rates currently listed by InfoChoice are:

Variable rate: 2.89 per cent p.a. (comparison rate 2.89 per cent p.a.) from Reduce Home Loan’s Low Rider Variable loan.

Fixed rate: 2.79 per cent p.a. (comparison rate 4.17 per cent p.a.) from Greater Bank’s 12 month Fixed Home Loan.

The highest savings rates currently listed by InfoChoice are:

At-call savings accounts: 2.55 per cent p.a. max bonus rate (base rate 1.15 per cent) from RAMS Saver (make $200 deposit & no withdrawals in a month)

12 month Term Deposits: 2.5 per cent p.a. from Qudos Bank.

VADIM TAUBE is the Chief Executive Officer of InfoChoice

Tags: 
Home Loans Savings

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