Finance Market Summary

All major and 2nd tier lenders have responded to the Reserve Bank's decision to lower the cash rate to 2.5% pa by announcing similar reductions to their standard variable rates commencing this week. The standout was Westpac which moved by 28 points, although it still has the highest varaible rate of all the majors.  Over the past few months 1 to 3 year fixed rates have continued to trend down with leading fixed rates over these terms remaining below the best discount variable rates.  

Overall the Sydney property market remains supply constrained.  This has lowered the level of lending activity so many lenders are releasing special offers to attract higher volumes.  If you have a loan that is more than 4 years old it is a good time to review it and perhaps take advantage of this opportunity to further reduce your interest costs.