The Reserve Bank’s announcement was good news in that it confirmed that interest rates weren’t going up, as many had been fearing in the weeks before the decision. However, it was also bad news for those people who have been watching talk of interest rate cuts growing in recent times.

As regular readers of these posts will know, we were talking about the move by the NAB to reduce interest rates on their fixed interest loans in OUR POST JUST FOUR WEEKS AGO. However, the news this week brought even more positivity to this discussion.

In case you missed it, the Commonwealth Bank announced this week that not only was it cutting their fixed rate home loans by as much as 0.7 per cent in some cases, CommBank was also reducing the interest rate on new variable rate loans by up to 0.35 per cent.

Now, for any existing customers of the Commonwealth with a variable loan, I should emphasise that whilst the change is for NEW loans, I’d be making a call to your loan manager this week to ask for a matching adjustment…just saying.

On a broader scale, however, this move is good news for everyone looking for a mortgage loan, as it signals an increased level of competition between the lenders who want your business. More competition means better deals, and that’s good news all round.

As we head towards the end of a Winter that has been a particularly good one for first home buyers, (ABS figures show that more than 42 per cent of owner occupied home loans in June were for market entrants, compared with 35 per cent at the same time last year), the coming Spring looks like being a more positive season for the local market than many were predicting.

So if you need any help in preparing for your next move, be sure to give us a call this week at Barry Plant Thomastown on 9466 3233.

Cheers,

Con Constantinou

Barry Plant Thomastown