SME Blog & News
Market Update
- Details
- 01 December 2019
Following the Reserve Bank recent interest rates cuts, rates are at an all time low.
These historical low interest rates will obviously impact borrowings across many loan facilities – i.e. motor vehicles, business equipment commercial & industrial property, residential & investment properties. Some examples of what is now available are:
- Owner occupied, principle and interest home loans from 3..02%
- Commercial & industrial property loans from 4% - Larger transactions
(plus $5m will attract a further reduction in interest rates)
- Business and other equipment from 4%
Consider an example of a motor vehicle or equipment purchased for $150,000.00 and
financed over a 4-year term with a balloon of 40%
- In 2010 the monthly repayment would have been: $2,568.00
- In 2015 the monthly repayment would have been: $2,499.00
- Today in 2019 the monthly payment will be: $2,248.00
That is a staggering $320 per month reduction over a 9-year period
Many of the car and equipment dealers are also heavily discounting their stock so if you are considering any purchase at present, especially a motor vehicle, looking for a new home or you wish to refinance your current home loan, your timing may be perfect.
Phone (03) 8825 8888 or enquire through our website: