Car Loans Australia :: Articles

Rash of rate rises not necessary

Rash of rate rises not necessary

Felt by many home buyers, the current interest rate level has sure applied pressure..., but was it necessary - asks Robert Projeski, managing director of Australian Mortgage Options.

Despite the Reserve Bank’s decision to put on hold plans to raise interest rates in April, Australian Mortgage Options managing director Robert Projeski believes the decision is one rise too late.

“We shouldn’t have had the last increase in March, on the back of a rate rise in February - the Reserve Bank didn’t let the effects of the first rise kick in.

It was impossible to gauge the real effects of the first rise on inflation and consumer confidence in February before they introduced the next one in March.

And with the actions of lenders in recent weeks, it is little wonder people are wary of investing in property. ”

In recent weeks 86 different Australian lenders, including the four major banks, either increased their rates or withdrew loan products out of the market, according to Mr Projeski.

“Cannex announced recently that lenders had increased their rates by up to 0.76%.

“We believe consumers are concerned about what is going on so we have introduced a new type of loan to counteract a drop in consumer confidence.”

Using a unique methodology, AMO have added up the combined 3 year fixed rates of the four major banks, come up with an average rate between the four and taken off a further quarter of a per cent from that figure.

“In short, what the banks have taken away, we have given back to the customer. We have also fixed the rate of the loan for peace of mind, particularly in light of predictions we will see another rate rise in May.”

The three year fixed loan offers up to $100 million at this 3 year rate, which is up to 0.37% off some of the majors, to coincide with AMO’s 10 year anniversary.

Designed to offset the reserve bank increase, it is simply the lowest fixed rate on the market.


Finance Articles
Choosing the Right Bank
Financial institutions are located all around the world. If you are looking to open a bank account, whether that bank account is a transactional account or a savings account, you have a number of banking options. - read more
Co-Signing Loans - Risky Business
There may come a time in your life when you are asked to co-sign for a loan or credit card. If this is the case, there are several things to consider before making a final decision. Technically, you are putting yourself at risk of damaging your own credit in the event that the loan goes unpaid. - read more
5 Credit Killers
A good credit score speaks volumes about your financial habits. It's the evidence most creditors need to evaluate your credit worthiness. - read more

Finance News

Personal Loans to help Australians in need: FSO
Oct 29 :: As Australia prepares to clean up following devastating fires and floods, Financial Services Online CEO, Andrew Clark, has announced a package... read more

Small business loans to help Aussie businesses through tough times
Nov 27 :: Financial Services Online has today announced a new credit facility for Australian business customers who are seeking loans for amounts of up... read more

Police issue warning about bank scam
Nov 20 :: Melbourne police are warning people about a scam in which fraudsters pose as bankers and ask for money.They say they cold call customers... read more


Need Help Finding a Loan?
Get a free car loan eligibility assessment and compare offers tailored specifically to your circumstances.
Loan Amount:
Postcode:
All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Consumer Credit Code:
An act of Parliament that governs the relationship that exists between borrowers and lenders.