Aaron WhybrowGeneral Manager, Strategic Mortgage Broker

New servicing rates time for a review

Name: New servicing rates time for a review
Uploaded: 2019-08-12T00:05:54Z
Duration: 1 min 27 s
Channel: Aaron Whybrow
Description: Banks lowered the serviceability rate they use to assess mortgages from 7.25% to 5.8%, which means you can borrow more. If you were rejected for…

12 Aug 2019 · 1 min

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1:27

Banks lowered the serviceability rate they use to assess mortgages from 7.25% to 5.8%, which means you can borrow more. If you were rejected for refinancing earlier this year, check again. Current rates sit around 3% to 3.5% for owner-occupied loans.

Questions this video answers

5.8%

About 7.25%

Just under 3% to 3.5%

Approximately 3.5% to 4%

The bank's calculators to afford money. Hey, it's Aaron from Diagnostics and Finance. I've been playing around with these calculators for about a week now with the new serviceability rate. So what that means is that if you're going to apply for a mortgage that's going to have a 3.3% interest rate, the bank's going to consider that money at 5.8. So what that means is that it used to be considered at 7.25 or thereabouts depending on the lender. Now it's at 5.8. So there's a little bit of extra capacity coming out of the calculators at the moment. So have you looked at the refinance lately? Were you told back in February, March, April, May, even June that you couldn't afford the refinance? Now it's time to have a look at that. If you're looking for rates on owner occupied mortgage, they are sitting between just under three to three and a half. Some of the investor loans, depending on principal and interest, are sitting between 3.5 and 4. Some of the interest only is on the investor sitting sort of around that 375 through 245 at this point in time. So if you haven't looked at the new rates at the moment, or you were talking about not being able to achieve things for a few months, probably time to get a review. Hey, it's Aaron from Diagnostics and Finance. Reach out if you just want to have a review, whether it is a yes or a no.