Important information
Please be aware of the following;
- As a blog style website there can be a lot of historical content contained within this website that is out of date and no longer applicable. This content must only be used for historical reference purposes.
- Ability Finance, through choice, no longer represent some lenders who may be historically referred to within this website.
- At present we are only prepared to discuss financial products for consumers with customers we are able to personally meet with on a face to face basis.
- No information or content contained on this site should be relied on as being current.
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Interest Rates
Home Loan Interest Rate
History to October 30 2008
The attached graph is factoring in the 1% drop announced by the RBA in the first week of October. A more recent graph of interest rates to January 2009 is available on this page.
Following this announcement most, but not all lenders, dropped their variable interest rates by 0.80 percent. A little later in October one competing bank dropped their rates by another 0.25 percent making them the lowest variable rate.
BUT another competing lender only had to drop their standard variable home loan interest rates 0.21 percent to equal the lenders rates who had just dropped 0.25 percent.
Since then other lenders have announced rate drops of even 0.30 percent.
Interest rates alone do not make the lowest cost deal.
- Application fees
- Legal fees
- Mortgage insurance
- Valuation fees
- Account keeping fees
- Early repayment fees
- Switch fees
- Discharge fees
- Deferred establishment fees
Any combination of these fees or charges can more than erode away any benefit of a low interest rate if comparisons are not calculated carefully.
