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What % of RE borrowers pay standard rates?

Discussion in 'Real Estate' started by Rickson, 9th Dec, 2005.

  1. Rickson

    Rickson Well-Known Member

    Joined:
    23rd Oct, 2005
    Posts:
    52
    I noticed the following quote in an article in the Herald Sun today, about NAB considering lending with different criteria and different rates to subprime borrowers.

    "The current standard variable rate (SVR) -- which only about 10 per cent of borrowers actually pay -- is 7.32 per cent."

    Are there any comments on this stat? We shouldn't feel so clever on professional packages if only 10% of borrowers pay the standard variable rate.
     
  2. Simon

    Simon Well-Known Member

    Joined:
    17th Sep, 2005
    Posts:
    520
    Location:
    Newcastle
    None of my clients pay the full rate. Either a basic loan or a Pro pack is usually my recommendation.

    Honeymoon rates generally lead into this high standard rate. I generally steer my clients clear of them too - when you do the sums they are not attractive.

    Cheers,