Rate war spurs further discounts

Smartline Personal Mortgage Advisers believes competition between the banks and non-bank lenders is at an all-time high, resulting in record low interest rates and strong levels of home loan activity.

The reason for this is very simple – the lenders can afford it, according to Smartline’s executive director Joe Sirianni.

“The cost of funds has reduced significantly for the banks in recent times and they are enjoying healthy margins, which gives them room to move when it comes to the rates they offer,” Mr Sirianni said.

“Competition is at an all-time high and most lenders are more than prepared to sharpen their pencil and, as a result, are offering some good deals,” he said.

“Back in 2008 we were usually impressed if we managed to negotiate a 0.70 per cent discount off a bank’s standard variable rate.

“We are now negotiating rate discounts that we would not have dreamed of in 2008.”

Mr Sirianni said now is the time for borrowers to put their brokers to work.

“Remember, their service is at no cost to you and the savings can be very surprising.”