9 September 2014

Finance Update from Portfolio Capital

Both bank and non-bank mortgage lenders are currently experiencing intense competition with record low rates on offer - primarily due to lenders' access to cheap capital from the international money markets.  Many lenders have reduced their 5 year fixed rate offerings to sub-five percent levels with rates going as low as the mid-4% range for shorter fixed rate terms.

Some lenders are even offering 100% offset accounts or unlimited extra payments and redraw on their fixed rate loans.  This provides all the flexibility of a variable rate loan as well as the certainty offered by a fixed rate.

Of course, it's not just fixed rates that are attracting stiff competition.  Depending on loan size, rate discounts of 1.05% or more are available from some lenders on their variable rate packages.  This is also seeing variable rate loans dropping well below the 5% mark.

In this environment it may well be time to review your current financial arrangements - both in terms of your current financing costs and to ensure that your loan structuring is providing you with the flexibility to meet your future needs.

If you would like to undertake an obligation free review of your existing loans simply contact us at info@portfoliocapital.com.au and we'll get straight back to you.  

Authorised Credit Representative Number 458789