We are very pleased to announce that we have recently been awarded Best Commercial Broker for Northern NSW by AFG for the 3rd year in a row. This could not have been done by our wonderful clients, business referrers and partners, family and friends, and we thank each and everyone of you for your ongoing support. Our business is to look after your business and personal finance requirements and this is testament that what we do is a much more preferable alternative to the chop and change service you receive from the banks.
Another and very important factor has been the reduction of a further rate cut some 2 weeks ago by the Reserve Bank. Ongoing patchy global economic data suggests continuation of a low interest rate environment and the RBA wouldn’t be lowering rates unless they are nervous about the economic landscape. For borrowers this represents a great time to not only grab lower loan interest rates but also to pay down debt quicker.
However as a borrower it also becomes frustrating not to see the full RBA rate cuts passed on. Over the past 12 months there have been three 0.25% rate cut announcements – October 2015, May 2016 and August 2016. During this time the majors have only passed on an average of 17 basis points compared to 75 basis points as the banks were forced to maintain rates in October 2015 to meet additional costs imposed by the regulator ASIC. For many of the second tier lenders we have seen between 45 – 75 basis point reductions which produces what I describe as the “Great Interest Rate Divide”. This unfortunately will continue because low rates can hide the reality and most borrowers still believe they are getting a great deal. This is a perfect time to switch by using our services or negotiate yourself and just to emphasise this point, for a home loan of say $500,000 this can represent a maximum saving of up to $3,750 per annum or $70 per week!
For business owners we have lenders offering between 4.49% – and 4.59% on commercial loans secured by residential or commercial property, so now is time to create your own divide by getting a better deal to that being offered by your current lender!
If you are getting a poor commercial or home loan deal from your existing lender, we would be happy to take your call, which is much less of a cost then the savings you would receive on your loans!