Expect a Flurry of Mortgage Rate CUTS!
Martin North| Digital Finance Analytics| 24 July 2017
http://www.digitalfinanceanalytics.com/blog/
The round of mortgage rate repricing which we have been tracking for the past few weeks, with investor loan portfolios being strongly repriced, and owner occupied loans less impacted, has created a significant well of opportunity for banks to selectively offer attractor rates to principal and interest borrowers.
In addition, funding costs are now lower, and the yield curve is less strongly indicating future increases, thanks to changes in the US financial markets and news that the ECB will continue its bond buying programme.
So we expect to see a flurry of selective, targetted offers, aimed at acquiring new business and supporting loan portfolio growth.
ANZ for example is offering a 31 basis point drop for new two-year fixed residential investment loan for customers paying principal and interest (P&I), falling from 4.34 per cent per annum (p.a.) to 4.03 per cent p.a.
First time buyers may also benefit from keen rates, but only in some cases by asking for them.
Remember this will be for new loans. Existing borrowers will still be saddled with higher costs.
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