Despite the Reserve Bank’s decision to leave rates untouched at its board meeting yesterday, one lender has decided to trim up to 85 basis points from its variable rate loans.
Yesterday, Think Tank announced the release of new standard pricing for all new loans which sees variable rates reduced by up to 0.85 per cent.
Full Doc pricing now starts at 6.15 per cent, with 75 per cent LVR loans at 7.10 per cent.
Lite Doc loans now range from 6.65 per cent up to 7.35 per cent at 70 per cent LVR, while Quick Doc loans are priced at between 7.15 per cent and 7.60 per cent at 65 per cent LVR.
Think Tank’s chief executive officer, Jonathan Street, said the lender had had the good fortune to substantially increase its funding programs which had allowed it to review its pricing.
“We’ve done this in context with our targeted lending volumes,” he said.
“With improved funding conditions emerging more broadly across the market, we have been able to substantially reduce our rates across the board, which is a great thing to be able to do for our SME borrowers.”
The rate reductions apply on all Full, Lite and Quick Doc loans approved from March 5 onwards.
“After a year or more characterised by subdued demand for credit in the commercial sector, we have begun to see encouraging signs of increasing activity from both investors and owner-occupiers. Lower interest rates have traditionally played a major role in re-stimulating demand and we are pleased to be able to add to that impetus with our rate change announcement today,” Mr Street said.
The new Think Tank rates are available to borrowers on all office, retail and industrial property types, and both to investors and owner-occupiers.
Funds may be utilised for purchase, refinance or equity release for up to $5 million on Full Doc and to $2 million on Lite and Quick Doc.