For yet another time for 2019, the Reserve Bank of Australia (RBA) lowered its cash rate by 25 bps to a new record low of 0.75 percent during its September meeting, in an effort to boost the Australian economy.
What will this drop in interest rate mean for your commercial property loan? We’ll look into some of the details below.
October 2019 Interest Rate Drop To 0.75%
The less financial information that can be provided the higher the interest rate tends to get, although at Commercial Loans Melbourne we have access to very competitive low doc commercial loan rates and high LVR’s.
Your fees and charges maybe a little bit higher when compared to full doc loans, but with our guidance, we can get you through the application process and on to loan approval in no time and with ease.
What Will Happen To the Australian Economy With An Interest Rate Drop?
According to Investopia, as interest rates fall, it becomes easier to borrow money, causing many companies to issue new bonds to finance new ventures. The RBA is hoping that this drop in interest rates will help the Australian employment market.
How Are My Repayments Likely To Change With The Rate Cut?
With the cut in interest rates, depending on the size of your commercial property loan, we have made some projections on what you can likely save.
|Loan Amount Examples||Likely decrease in repayments|
|$150,000||$21.45 per month|
|$250,000||$35.75 per month|
|$350,000||$50.05 per month|
|$450,000||$64.35 per month|
|$550,000||$78.65 per month|
|$650,000||$92.95 per month|
Commercial Property Loans
Here at Commercial Loans Melbourne we are local specialists with intimate knowledge of the Melbourne property market. We are also just one phone call away from a cup of coffee to discuss your commercial property finance needs.
If you’d like to have a chat with us about a tailored finance solution, simply hit the button below, give us some preliminary information and we’ll book in a convenient time at either of our offices, or a spot convenient for you!