With the RBA cash rate still at a record 0.10 % as at 4th August 2021, lenders are still offering variable interest rates at very competitive levels. Some lenders are even offering generous “cash backs” for existing borrowers to switch lenders.
Most “cash back” deals are for customers re-financing as opposed to first home buyers. Borrowers who are re-financing with the view of “cash back” need to consider competitive interest rates and costs such as fees. Another question to ask is, “Will the “cash back’ amount that is going to be paid more than the extra interest over time?”
We have seen recently that the Fixed Interest Rates for a 4-and 5-year term have increased as lenders are anticipating that official interest rates set by the Reserve Bank will be rise over time. Although funds are now at low interest rates, the finance application is still subject to the lender’s stringent credit criteria.
If you are considering re-financing or purchasing a new property for investment or owner-occupied, contact Paul today to discuss all your available options.