With the RBA cash rate still at a record low of 0.25% as at 1st September 2020, lenders are now offering variable interest rates at very competitive levels. As is usual during the annual “spring season”, lenders become very competitive for new business. Some lenders are even offering generous “cash-backs” for existing borrowers to switch lenders.

Most of the best deals during this period are for borrowers who possess a large deposit for purchasing as well as those who have built up good equity in their existing property if they are re-financing.

It is evident that lenders will also price competitively if the borrower makes principal and interest repayments as opposed to interest-only. Also, some second-tier lenders price their rates according to the LVR (loan to security value). For example, a loan of 70% LVR would be different to a loan of 80%.

Whilst funding are currently at low interest rates, the finance application is still subject to the lender’s current credit criteria and especially given the current Covid-19 situation, additional risks assessments are applied.

If you are considering refinancing or purchasing a new property for investment or owner-occupied purposes, contact Paul today to discuss all the options available as conditions and terms have changed drastically.


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