Rate cuts from big banks upto 55bp

Discussion in 'Loans & Mortgage Brokers' started by JohnPropChat, 16th Jul, 2018.

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  1. JohnPropChat

    JohnPropChat Well-Known Member

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    Commonwealth Bank, Westpac Group and Suncorp are slashing honeymoon rates on home loan products, in a bid to stimulate growth as real estate markets slow.

    Three of the top five mortgage lenders are flexing their balance sheet muscle to offer discounts of up to 55 basis points for investors and home buyers on introductory rates.

    The new offers enable the banks to beat competition for lucrative new business but will increase repricing pressure for existing medium and long-term borrowers.

    CBA, Westpac and Suncorp cut discount rates by up 55bp
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Brings them in line with what some other lenders have been offering for a while now, but unfortunately many of these are honeymoon rates and quite expensive after a couple of years. The Suncorp deal is reasonable, but the CBA and Westpac offers are actually fairly awful.
     
  3. Barny

    Barny Well-Known Member

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    Peter with variables rates on the move perhaps shortly from the big 4, do you see discounting to current fixed rates for older borrowers?
     
  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I really haven't got a clue where rates are going, but the fixed rates with quite a few lenders are at about 4.2% (for investors). In many cases that's already a lot cheaper than the variable rates, and this is the one niche where the Big 4 are (just) beating certain second tier lenders. I guess I can't see a compelling reason for the Big 4 to discount fixed rates further, but this is coming from someone who fixed at 4.8% 5 years ago. :confused:
     
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