Fix the best rate

Competition in the home loan market increased at the end of July with three of the big four banks cutting their five year fixed interest rates to under five per cent.

Commonwealth Bank, Westpac and NAB all lowered their five year rates to 4.99%p.a., with Citibank, AMP and CUA also announcing interest rate reductions.

Matching the other banks, Citibank lowered its five year rate to 4.99%p.a., but went even further by dropping its two and three year rates to 4.74%p.a.

AMP Bank also reduced its two and three year rates to 4.85%p.a. and CUA conservatively lowered its five year rate to 5.10%p.a.

So what does all this mean and why is it good news for your clients?

Market movement like this highlights the intense competition between lenders, both big and small to win new business and stay in top spot.

Such extreme measures to grab more market share is excellent for the property market.

Winter is normally a slow period but August started very strong. The low interest rates are appealing to both buyers and sellers alike so more and more people are taking the plunge into property.

While many clients choose a standard variable rate on a home loan, fixed term packages at low rates are looking more attractive and could be a smarter option over the short to medium term.

Any overseas interest rate rises in the next year or so are likely to influence the Australian market. The significant upside for customers fixing their rate now is the certainty it brings on repayment costs and the benefits of low interest for a set period of time.

Now is a great time to reach out to your clients who are homeowners and encourage them to talk to me about reviewing their current loan structure. First home buyers can also take advantage of the low rates and the comfort a fixed mortgage structure brings.

And there’s still deals to be be done if customers decide they want a variable rate. With access to over 30 lenders you know and trust I have the insider’s edge on negotiating rate discounts and will do the legwork to get the best deal for your clients.