Who Has The Best Rate?...An Updated Look


Who has the best rate? … An updated look.

Such a simple question – yet it doesn’t have a simple answer.

  1. Lenders used to price your loan based only on loan size – the bigger your loan the lower your rate. (some still do this)
  2. Post GFC many lenders added another factor – the bigger the loan size AND the bigger your deposit the lower your rate – a double reward system if you like
  3. We now have a third factor – is it an owner occupied loan or an investment loan?
  4. And a fourth factor – is it a Principle & Interest (P&I) or Interest Only (I/O)?

If you have a large loan and a small deposit - we would look at the first group of lenders.

If you have a big loan and a big deposit – we would in all probability look in the second group of lenders.

If you are buying an investment property we would need to find a lender who rewards you with a good rate.

Fees also play a big part and here’s the idea :

  • Rate is proportional has the most effect on bigger loans
  • Fees are constant and have the biggest relative effect on smaller loans

On smaller loans it is usually cheapest to find a lender with no fees and a reasonable rate rather than a lender with a lower rate but higher fees.

Who has the best rate? – is more complicated than most people realize – that’s why it makes sense to Ask Alan.

I will find the best loan for your specific and personal circumstances.

Call or email me anytime... it's what I'm here for...