There’s a lot of recent media attention on interest rates, some saying that they will stay low and others that rates are going to go lower.

The Reserve Bank Governor this week that they might even say interest rates go down by another half a per cent – to be at 0.50%.

The problem now that we are seeing for clients is that the banks aren’t lending money. This is totally against the way that the government is trying to get more lending, and so more people are spending and increasing economic and business activity. It also doesn’t make sense, as the Reserve Bank doesn’t want consumers to lend more money – but want businesses to do so. If consumers can borrow to buy a house, or complete a renovation, or able to purchase new goods, then it assists other businesses. Also, banks don’t want to lend to property developers and builders, which are generally the mainstay of the economy.

For home loan clients, all of the talk at the moment, in the media and the government is that everyone should check interest rates. You should have an interest rate that’s got a three at the front of it, and so on, is excellent.

But all of the criteria in the credit departments from the banks is a different story. It’s challenging to get the credit process, and then who knows what you’re going to get approved for in terms of a loan amount or an interest rate.

In our view, it’s a bit like being given a golden ticket to a ball, but you don’t have money to afford the dress or the suit to go to the ball. Or for those clients that would remember the ads in the 80s – it is a Clayton’s Interest Rate – the interest rate you get when you can’t get the interest rate! (If you want to take a trip down memory lane, or for those that want to know more about old Australian culture, check this link.

If you have any questions or concerns regarding this matter, please call the Client Services team on (08) 9227 6300 or email

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Important information and disclaimer

This publication has been prepared by AustAsia Group, including AustAsia Finance Brokers Pty Ltd (Australian Credit Licence No 385068), and AustAsia Real Estate Pty Ltd (REBA Licence No. RA1736).

Any advice in this publication is general only and has not been tailored to your circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance, or other decision. Please seek personal advice before acting on this information.

Information in this publication is accurate as at the date of writing, 5 August 2019. Some of the information may have been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.

Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of AustAsia Group, nor their employees or directors give any warranty of accuracy, nor accept any responsibility, for any errors or omissions in this document.

Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.

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