According to the Reserve Bank of Australia’s (RBA) latest Lenders Interest Rates data, existing variable rate home loan customers were charged an interest rate over 30 bps (0.30%) higher than new customers over the month of December.
For owner-occupiers, borrowers with newly originated loans were paying an average interest rate of 3.28 per cent, compared with existing customers with an average interest rate of 3.61 per cent. The interest rate for new owner-occupied loans now sits at an average of 2.87 per cent, a decrease of between 41-74 bps.
The gap widens among investors, with new customers charged an average interest rate of 3.65 per cent, while existing customers were charged an average of 4.01 per cent – 36 bps higher. Currently the average investment interest rate being charged is 3.05 per cent, 96 bps lower than existing customers.
The drop in interest rates has experts urging borrowers to shop around for a better rate and refinance their loans.
If you think you are not getting the best possible rate, contact Richard or Kelly at Suttie Financial Group today.
Ref: Charbel Kadib, Mortgage Business, 11 February 2020
Full Article: Mortgage Business
