Interest Rates

Business Finance / Commercial Bill based facilities

(based on the Australian Financial Markets)

Variable Short Term Interest Rates (90 day rate)

based on a $1m+ borrowing parcel, plus a bank margin/credit risk margin would be added to these base rates.

23/03/2016: 2.35%
28/01/2016: 2.33%
22/01/2016: 2.32%
22/10/2015: 2.21%
16/10/2015: 2.19%
16/07/2015: 2.19%
10/07/2015: 2.19%
23/04/2015: 2.31%
17/04/2015: 2.31%
29/01/2015: 2.66%
23/01/2015: 2.77%
11/12/2014: 2.80%
05/12/2014: 2.76%
23/10/2014: 2.79%
17/07/2014: 2.70%
30/01/2014: 2.68%
12/12/2013: 2.65%
09/03/2009: 3.26%
25/01/1995: 8.55%
 
 

Fixed Rate Interest Rates,

based on a $1m+ borrowing parcel, plus a bank margin/credit risk margin would be added to these base rates.

24/03/2016 3 Year 3.00%, 5 Year 3.10%, 10 Year 3.45%
29/01/2016 3 Year 2.95%, 5 Year 3.10%, 10 Year 3.50%
22/10/2015 3 Year 2.80%, 5 Year 3.05%, 10 Year 3.60%
16/10/2015 3 Year 2.80%, 5 Year 3.05%, 10 Year 3.60%
17/07/2015 3 Year 3.05%, 5 Year 3.40%, 10 Year 4.00%
10/07/2015 3 Year 3.05%, 5 Year 3.40%, 10 Year 4.00%
23/04/2015 3 Year 2.95%, 5 Year 3.10%, 10 Year 3.45%
17/04/2015 3 Year 2.85%, 5 Year 3.00%, 10 Year 3.35%
30/01/2015 3 Year 3.05%, 5 Year 3.15%
23/01/2015 3 Year 3.15%, 5 Year 3.25%
11/12/2014 3 Year 3.30%, 5 Year 3.50%
05/12/2014 3 Year 3.35%, 5 Year 3.55%
23/10/2014 3 Year 3.45%, 5 Year 3.70%
17/07/2014 3 Year 3.40%, 5 Year 3.75%
30/01/2014 3 Year 3.85%, 5 Year 4.35%
12/12/2013 3 Year 3.80%, 5 year 4.35%
09/03/2009 3 Year 3.90%, 5 year 4.50%
25/01/1995 3 Year 10.35%, 5 year 10.45%
 
 


 
 
Historical rates:
31/12/2012: 90 Day 3.07%
28/09/2012: 90 Day 3.37%
29/06/2012: 90 Day 3.49%
30/03/2012: 90 Day 4.34%
30/12/2011: 90 Day 4.48%
30/06/2011: 90 Day 5.03%
31/12/2010: 90 Day 5.04%
30/06/2010: 90 Day 4.92%
31/12/2009: 90 Day 4.28%
30/06/2009: 90 Day 3.19%
31/12/2008: 90 Day 4.15%
30/06/2008: 90 Day 7.84%
31/12/2007: 90 Day 7.24%
29/06/2007: 90 Day 6.44%

Most of the Bank’s Bill based Lending facilities are priced using the BBSY bid base rate. Which is the SWAP rate (BBSW) + 0.05%.
 

The following Margins are then added

 
• A Bank ‘Product Margin’.
Also known as a ‘Treasury Margin’ or ‘Liquidity Margin’.

• A ‘Customer Risk Margin’.
Note: Post GFC it is common to see the Customer Risk Margin broken down as 50% Risk Margin and 50% Line Fee (50/50 as a guide, assessed on a case by case basis and or by negotiation).

• Bill Roll-Over Fees.
Charged each month or quarter in line with the Roll-Over Term or Monthly Service Fees charged depending on the facility.

Note:
The Line Fee is charged based on the Facility Limit*, where as
The Risk Margin is charged based on the Balance owing (which would be base rate + risk margin).

*Therefore in most cases, this post GFC practice by the Banks will only negatively impact you if you have a large amount of Redraw available to you which you are not utilising.
 
 
 

Cash Rate based facilities

(based on the Reserve Bank of Australia)

This provides a basis for the Lenders base rate for their Cash Rate based products (ie Home Loans).
 

Cash Rate: 02 Dec 2015: 2.00%
Cash Rate: 04 Nov 2015: 2.00%
Cash Rate: 07 Oct 2015: 2.00%
Cash Rate: 01 Sep 2015: 2.00%
Cash Rate: 05 Aug 2015: 2.00%
Cash Rate: 08 Jul 2015: 2.00%
Cash Rate: 03 Jun 2015: 2.00%
Cash Rate: 06 May 2015: 2.00%
Cash Rate: 08 Apr 2015: 2.25%
Cash Rate: 04 Mar 2015: 2.25%
Cash Rate: 04 Feb 2015: 2.25%
Cash Rate: 03 Dec 2014: 2.50%
Cash Rate: 05 Nov 2014: 2.50%
Cash Rate: 08 Oct 2014: 2.50%
Cash Rate: 03 Sep 2014: 2.50%
Cash Rate: 06 Aug 2014: 2.50%
Cash Rate: 02 Jul 2014: 2.50%
Cash Rate: 04 Jun 2014: 2.50%
Cash Rate: 07 May 2014: 2.50%
Cash Rate: 02 Apr 2014: 2.50%
Cash Rate: 05 Mar 2014: 2.50%
Cash Rate: 05 Feb 2014: 2.50%
Cash Rate: 03 Dec 2013: 2.50%
Cash Rate: 06 Nov 2013: 2.50%
Cash Rate: 02 Oct 2013: 2.50%
Cash Rate: 04 Sep 2013: 2.50%
Cash Rate: 06 Aug 2013: 2.50%
Cash Rate: 02 Jul 2013: 2.75%
Cash Rate: 04 Jun 2013: 2.75%
Cash Rate: 08 May 2013: 2.75%
Cash Rate: 03 Apr 2013: 3.00%
Cash Rate: 06 Mar 2013: 3.00%
Cash Rate: 06 Feb 2013: 3.00%
Cash Rate: 05 Dec 2012: 3.00%
Cash Rate: 07 Nov 2012: 3.25%

www.rba.gov.au
 
 

Business Loans & Business Overdraft Interest Rates

The Lenders default Products for Business borrowings <$1m are based off the Cash Rate. The effective rate is inclusive of a product margin in the region of 5%-6% on top of the Cash Rate. In addition a Risk Margin may also apply if the security is other than Residential Property.   In some circumstances the Bill based pricing can apply rather than the Cash Rate pricing, which could provide substantial savings. As a guide generally when the Business borrowings are >$500k. A Risk Margin of 2-5% would also apply.
 
 

Debtor Finance Interest Rates

Assessed on a case by case basis.
 
 

Asset Finance Interest Rates

Assessed on a case by case basis.
 
 

Home Loan Interest Rates

Currently between 4.5% to 5.50% Variable as a guide for a Loan of $250k+ (after applying the Lenders Package discounts), these rates are guided by the Cash Rate. Therefore as you can see, the Lenders product margins are around 50% lower on these products, which is probably due to the fact that these loans are generally considered lower risk than business facilities and there are significantly more Lenders fiercely competing for these loans.
 
 


 
 

 
 
 

Share this:

• Share

• Twitter
• Facebook
• LinkedIn
• Email
• Print