The Reality is that almost no-one pays
the Standard Variable Rate.
(if you are paying the Standard Variable Rate - talk to us now)
If all you were looking at was the Standand Variable Rate then it would be easy to work out what is the cheapest rate. See below a table of Standard Variable Rates as at 14th Feb 2012
Lender
|
Standard
Variable Rate |
Homeside/NAB
|
7.34% pa
|
ANZ
|
7.36% pa
|
CBA
|
7.41% pa
|
Suncorp*
|
7.43% pa
|
Westpac
|
7.46% pa
|
It all depends on what Discount are you getting?
What the lenders do not tell you is how much of a discount you can get of these rates. Some lenders also offer you a 0.50% discount and some will offer 1.0% or more.
How much of a discount can you get? Well that depends on a lot of things.
- How much you borrow
- How much equity you have
- Other loans you have
- Your Knowledge of the market (ie what is the Competituion Offering)
- The competency of your broker
Below is an example of the discounts offered for a $550,000 loan with a Lending Ratio of 70% (ie 30% equity position) as at 14th February 2012. As you can see the Standard Variable Rate is part of the story but it really does not matter. The actual Rate you pay is what counts (and this is before we even look at fees, charges, features and suitability of the loan). If you need advice - come and talk to us.
Lender
|
Standard
Variable Rate
|
Discount
Offered
|
Actual
Rate
|
Homeside
|
7.34% pa
|
0.95%
|
6.39%
|
ANZ
|
7.36% pa
|
0.90%
|
6.46%
|
CBA
|
7.41% pa
|
0.80%
|
6.61%
|
Suncorp
|
7.43% pa
|
1.03%
|
6.30%
|
Westpac
|
7.46% pa
|
0.80%
|
6.66%
|
