Package up for a five per cent mortgage

Banks and other lenders are said to be offering sub five per cent loans as part of package deals for big loans. The InfoChoice benchmark rate is currently at 5.36 per cent.

The InfoChoice benchmark is the weighted average of the rates offered on full featured variable loans of approximately 100 big and small lenders around Australia.

The average standard variable mortgage rate now being offered by the second tier of lenders and credit unions is 5.60 per cent.

Some second tier lenders in Australia have used the February 2009 rate cut to boost margins slightly while, of the majors, only ANZ increased its margins in February. The second tier lenders have fattened their margins less than the big five banks over the last few months.

Source: The Sheet