22 March 2022
Interest Rates
• The RBA cash rate still currently sits at 0.10%. Many economists expect to increase this year due to underlying inflationary pressures (from global supply chain issues & large increases in energy and commodity prices).
• Due to this expectation of rates increasing, most lenders have already started raising their fixed rates over the past few months.
• In contrast, we are seeing variable rates on the low end still below 2% and fixed rates around the 2.59% mark (for 2 years fixed).
Cash Back Offers
• We are seeing strong demand from clients seeking to refinance their lending to ensure they have the best deals at the lowest rates. Banks have responded to this and are offering from $2,000 right up to $6,000 as a cash back incentive to refinance your current mortgage (paying customers to refinance!). This is a cash payment made to the customer once the refinance loan settles.
Credit Policy Changes
• Self-employed borrowers are set to benefit from a part of the mortgage market that has been evolving over the past few months.
• Historically, self-employed borrowers need to show 2 years history for all businesses they are involved in but there are a few lenders who are now allowing self-employed borrowers who pay themselves a regular salary to be assessed as if they are a PAYG employed borrower (significantly reducing red tape and complexity for self-employed borrowers who traditionally find it harder to access lending). There are strict criteria but, in many instances, this is proving to be a great solution for self-employed customers.
Bank Turnaround Times
• We are seeing improved assessment times for approval right across the board with most major & many smaller banks only 24- 48 hours to pick up and assess/approve applications.
• In some instances, we have had approvals in 1 hour or less!
If you or someone you know needs assistance with borrowing or refinancing, please don’t hesitate to contact Simon Orbell, Team Leader & Director – Smartmove on sorbell@smartmove.com.au or 0403 403 899.
