Small lenders have home loan deals

Dekemvriou crossed the Reserve Bank's rate was initially greeted with enthusiasm by his house owners.However, relief quickly turned to disbelief when the big banks proved reluctant to pass on lower interest rates.

This drag chain may reflect the difficult conditions in global financial markets, but also reinforces the need for borrowers to make some reduction in the percentage hesitation own.The these banks to reduce mortgage interest rates are a direct result of the crisis debt played in Europe.

The cash squeeze affecting the availability and cost of capital that banks use to provide mortgage loans here in Australia.

When the ANZ Bank announced that reducing standard variable rate in response to lower interest rates in reserve, the warning, "The importance of the crisis in Europe has real consequences for global economic outlook for the Australian economy and the bank in financing costs.

" The ANZ, also added, somewhat chillingly, that "the bank funding costs are now largely associated with movements in the official cash rate the Reserve Bank." This may happen, but while our largest banks - the Commonwealth Bank, National Australia Bank, Westpac and ANZ Bank - dominate the mortgage market, many smaller lenders still offer compelling prices for mortgage loans.

quick look at the top RateCity comparison shows non-bank lender loans.com.au charge a variable rate of 6.38%; UBank (the online arm of the National Bank of Australia) offers a rate of 6.39% for the refinancing of its customers and the State Trustees has offset loan with floating interest rate model of 6.47%. By comparison, the average standard variable rate at the time of writing, between the big four banks is 7.3%. With a wide selection of low-rate loans to choose from, many homeowners could afford a reduction in interest rates from their own simply by casting a net in the international market for smaller lenders.

There are other ways to obtain a lower rate. For example, ME Bank, which was one of the first lenders to pass on recent interest rate cut by the Bank, offers a constant discount rate of 0.45% mortgage customers who are members of a trade union or industry pension fund. Offset your mortgage from one lender to another involves a certain amount of discomfort.

article source :- http://www.gladstoneobserver.com.au/story/2011/12/13/smaller-lenders-have-home-loan-deals-interest-rate/