For a broker the simple question is how much is your Interest rate. If your client is paying more than 3% or even higher why, as a broker, would you risk losing your licence. ASIC requires brokers to give their clients the best rate in today’s market. Your client should not be paying more than 12% per annum. 1% per month will give brokers more flexibility than ever before in this market. The serviceability is workable for every SME Australia-wide. Prime Finance is the only lender in Australia providing 1% per month up to 80% LVR in 2nd mortgages/caveat loans.
The increase in loans since we dropped the interest rate has been 10 fold. I would like to see other lenders drop their interest rate instead of charging higher rates. Over 10 years ago Prime Finance came into the market at 3% per month where the standard was 5% and higher. It took a number of years for other lenders to follow but it happened. Now there has been another adjustment in the market I believe only genuine lenders will follow and this will give brokers and their client’s affordable access to short term finance.
Business loans 1%per month “not starting from its just 1 % per month”.
Residential loans a flat 2% per month no default rate.
1st and 2nd mortgages, caveat loans.