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Wave of rate cuts continues: who and how much

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Maya Breen | 05 Feb 2015, 08:32 AM Agree 0
Following the RBA’s decision to cut the cash rate, others have followed suit
  • Bill | 05 Feb 2015, 09:10 AM Agree 0
    Amazing that more people don't look at the smaller lenders. Westpac cuts their SVR to 5.70% - smaller bank/mutuals have got theirs lower than that BEFORE the cut.
  • Tom | 05 Feb 2015, 09:54 AM Agree 0
    Bill, nobody pays the SVR rate, so I'm perplexed at why we keep quoting it.

    You used Westpac as an example, most borrowers will be signed up under their package, and will generally receive at least a 0.7% discount, meaning the actual rate is 5.0% or less.

    Oh, and that's before applying the special pricing that has been available for 18 months or more, and we brokers are more than happy to help our clients by requesting special pricing from the major lenders.

    And besides, a loan is about more than just an interest rate. After all, what good is a cheap SVR from a small lender if their credit policy excludes most borrowers from an approval?

    What's more important, a cheap headline rate, or a tailored solution that allows a borrower to live the dream?

    I'm all for making the dream a reality, and a quick efficient approval combined with a competitive rate is what I'm looking for, and that's where the small lenders fall.
  • Richard | 05 Feb 2015, 10:02 AM Agree 0
    Bill, nobody pays SVR. If you are comparing lenders based on SVR I'm afraid you don't know what you are doing. All my clients have loans with significant life of the loan discounts which reduces the variable rate to significantly below SVR. Comparing loan rates of lenders based on an arbitrary and vague concept like SVR is just plain incorrect.
  • GC | 05 Feb 2015, 10:41 AM Agree 0
    Bill, The STV is just a benchmark. Nobody gets that rate unless their loan is below $150K.
    The prime reason for NOT looking at the 2nd & 3rd tier lenders is that they are slow and obstructionist and wont look at the unsual applicants or complicated structures.
  • Nick | 05 Feb 2015, 11:12 AM Agree 0
    Further to SVR comments, yes it is discounted by most but the comparison rate is what should be considered as most important. Fee heavy loans don't look so attractive. A lot of the alternative lenders don't have the level of ongoing fees of the bigger banks.
  • Dave robinson | 05 Feb 2015, 11:22 AM Agree 0
    The SVR is sold exclusively by branches, so if you meet anyone on the SVR it's not hard to show them that you are working for them as opposed the bank staff member who sold them the SVR, that's why the majors keep quoting it. 52% and rising....hehehehehe.
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