We  all know the news that all banks and smaller lenders have passed on the full 0.25% rate cut.

The question is, when will they pass it on? As mentioned in an earlier post lenders are quick to pass on interest rate increases but slow to pass on interest rate decreases. Below is a table comparing the differences between the banks between the November and December interest rate decreases.

The biggest difference between the rate announcement and the time they are going to pass on the rate cut is Bendigo and Adelaide Banks. In the last 2 months their customers are paying an extra 0.25% over 50 days. CBA was the quickest to pass on the rate cut in November but has taken eleven extra days this time round.

From this data it is important to choose a lender that pass on rate cuts as soon as possible. So called comparison rate schedules never really show the true cost of a loan and you need to be aware which lenders serve their customers best.

Yesterday saw ANZ to be the first of the big banks to pass on the full interest rate cut to its variable rate customers.

Later that day NAB, ING Direct and Commonwealth Bank followed. Westpac waited until the evening to announce their intention. I expect all the second tier banks and other lenders to follow.

Obviously, from this behaviour I expect that we will not see full interest rate cuts in the future or interest rate increases outside the Reserve Bank of Australia’s recommendations.

We will keep you updated when the lenders will be passing on the interest rate cuts and the new standard variable rates for each bank and lender.

The Bank of Queensland announced today that they will pass on the full 0.25% interest rate cut but what’s the catch.

The catch is they will not reducing their interest rates until the 16th December and this will bring their standard variable rate to 7.36%.

Assuming that the other banks and lenders pass on the full rate cut there are much better offers.

If you would like to compare your mortgage to hundreds of other loans complete the contact form below to speak to one of  our licence mortgage brokers. A 0.25% difference on a mortgage of $300,000 will save you $750 yearly.

The Reserve Bank of Australia cut interest rates from 4.50% to 4.25% today.

This may seem to be an early Christmas present for mortgage holders but there are rumors that the banks will not pass on the full rate cut. So here we go again. Let us wait and see what ANZ, NAB, Westpac, Commonwealth Bank, ING Direct and the other lenders do. As always we will keep you updated on the following in the next coming weeks;

- which banks passed on the full rate and those who did not
- when the banks will be passing on the interest rate cut. This usually ranges from 3 and 28 days
- new loan discounts for fixed and variable mortgage rates

The RBA are on holiday over the Christmas period and their next meeting is at February 2012.

If you have any questions about your home, investment or commercial loan please do not hesitate to contact us for free advice or go to our mortgage website.

It came to our attention today that 2 year and 3 year fixed rate home loans and investment loans have dropped below 6%.

As discussed last week we saw a trend that fixed rates falling and now 3 year fixed rates have dropped below six percent.

These rates are available  from Australia’s most recognised lenders. To take advantage of this offer please contact one of our brokers by completing the form below. They will show you what type of fixed rate loan suits you lending needs.

Since the last interest rate cut, home loan interest rates have come down. Fixed interest rates are also falling and for the first time in 2 years we see a 2 year fixed rate fall below 6%.

Below are some of the better interest rates from various lenders around Australia that include ANZ, NAB, Westpac, Commonwealth Bank, ING Direct, Bank West and many more.

Basic Variable – 6.66

Variable Offset – 6.55%

2 Year Fixed – 5.99%

3 Year Fixed – 6.20%

3 Year Fixed – Interest in Advance – 6.05%

5 Year Fixed – 6.39%

Low Doc -  6.66%

Line of Credit -  6.63%

If you would like to take advantage of speaking to one of our professional mortgage specialists to discuss which home loan or investment loan suits your needs please complete the form below.

Update: ANZ reduces its variable mortgage rates by 0.25% and in a surprise NAB reduces rates by 0.20%. Despite not passing on the full interest rate cut NAB still has the lowest standard variable rate amongst the big four banks.

As predicted interest rates were reduced by 0.25% yesterday giving borrowers a reprieve before Christmas. The rate reduction meet instant reaction from Westpac and Commonwealth Bank announcing that they will pass on the full rate cut. ANZ and NAB have not made announcements but we expect them to do the same. NAB may even go even further since they have been the most aggressive amongst the big four in keeping interest rates lower than its competitors.

The recent rate reduction means that the average mortgage holder will save approximately $700 to $800 annually on interest repayments. Fixed rates still remain below most variable rate loans and there are some good bargains out there. Some economists are predicting further cuts but it seems rates will be on hold until after Christmas unless a major economic catastophy happens.

To see indicative home, investment and commercial loan rates please visit our main site Smart Search Finance. These will be updated in the coming days as lenders pass on the rate cut.

Smart Search Finance has a network of  ASIC licenced Mortgage Brokers that are experts in home, investment and commercial loan solutions. All of our brokers deal with the major banks as well as many other lenders.  They can help you compare loans, negotiate better interest rates and find loans that you may never have considered.

Please complete the form below if you would like to speak to one of our brokers in your local area.

More than ever mortgage brokers can significantly save you time finding a home or investment loan due to the new  regulatory requirements.

The new legislation requires that all lenders and brokers assess an applicant before they can recommend products. Often this requires supporting documentation that includes;  tax returns, pay slips, identification, other loan statements such as car, personal and home loans and other forms of documentation. Also, if there are two applicants then both have to be present at the interview.

If you were to shop around for a mortgage then this process can be very time consuming. Using a mortgage broker can take one lot of documentation, one interview and compare your requirements to hundreds of loans. It is really that simple.

Most brokers have at least up to 30 lenders to choose from that include the major banks, second tier banks as well as non bank lenders. Therefore, you are likely to get one of the most competitive loan solutions based on your finance needs.

If you are interested in speaking to a licensed and experienced mortgage broker in your local area please submit a mortgage quote.

Only a day ago Westpac reduced its fixed rates by 0.40%. Today they reduced their fixed rates by a further 0.20% after the Commonwealth Bank announcement.

The competition is heating up.

Commonwealth Bank has reduced its fixed rates by 0.60%.

1, 2 and 3 year fixed rates will be at 6.74% and 6.59% with a package

4 and 5 year rates will be at 7.14% or 6.99% with a package

To find out if these fixed rates are suitable for your lending needs please send an online enquiry to one of our mortgage brokers