Mortgage manager reduces rates to encourage buying

by Caroline Dann10 Jul 2012

Australian First Mortgage has announced a 0.2% reduction in its commercial variable rate, which it says should encourage businesses to shun renting.

Effective immediately, the rate reduction brings a variable loan with an LVR of less than 65% to 7.89%, and a fixed-rate loan to 6.64%.

AFM cited relocation costs associated with renting – new signage, IT support, stationery and logistics – as a key reason to buy a commercial property.
AFM director Iain Forbes is hoping the reduced rate will encourage businesses to make the switch permanently.
“We are determined to pass on every rate reduction to our borrowers,” he said.