Banks tout deeper mortgage discounts
Among other lenders to notify interest rate increases on mortgage finance, at least two more brokers, were Interstar and Resimac. The rise will flow on to variable rate home loans and take the notional standard variable home loan rate to 7.57 per cent. However, banking monitor InfoChoice noted that the more typical rate paid by Australian borrowers, as measured by the InfoChoice Benchmark Variable Rate, will rise from 6.79 per cent to around 7.05 per cent. InfoChoice’s surveys of actual market interest rates suggests a discount to advertised “standard” variable rates of 52 basis points. The typical rate discount may be even larger than this. Plenty of lenders tout discounts on larger home loans of between 60 and 70 basis points. And in a ring around of mortgage brokers yesterday, there was talk of major banks offering selected discounts of 80 basis points.