Banks Falling Over Themselves to Win Business

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Be you a home-owner, investor, or business owner, the banks are falling over themselves to win your business at the moment.

As the property market normalises, the banks are now working harder for your business.

In the past two years, the boom has meant that the banks have had no shortage of finance applications as people rushed to buy property.

But now, they are offering sweeteners to win or keep business. The most obvious way is with ultra-sharp interest rates – but there are also a few other inducements they are using to compete in a smaller pool.

One mortgage broker recently reported that, such is the banks’ aggression to win business off each other that 28.5 per cent of broking business is for refinancing owner-occupied homes, compared to 25 per cent for owner-occupied purchases.

Latest figures from the Australian Bureau of Statistics show that the share of owner-occupied loans for refinancing is now at 36 per cent compared to 32 per cent a year ago.

Such is the competition amongst the banks that many will offer a sweetener of up to $1,500 for you to switch banks or 250,000 frequent flyer points.

And interest rates remain low; one lender recently returned to the investor market with a 3.99 per cent 3-year fixed investor loan.

Competition is also sharp for business lending. If you are a business owner looking to improve cash flow, one major lender will lend up to 100 per cent of the value of your home as a line of credit to be used in your business.

As we get closer to tax time, it is worthwhile reviewing your loans to make sure that you still have competitive rates. For a no-obligations consultation, please contact  on 1300 30 67 67.

 

Graeme Salt

Graeme Salt

Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.

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