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Daniel J.
Daniel J.
Freshwater, NSW
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Coming from Europe, any chance to launch LIBOR linked mortgages in Australia?

10 years ago

Responses

Daniel. Hi. LIBOR refers to the London Interbank Offer Rate, although I'll bet you already knew this. It is used by Australian Banks when accessing funding at a Wholesale level. This is just one of many avenues available for Lenders within Australia. I have also seen LIBOR based rates being available to large Corporate borrowers although the more common avenue for business would be a margin over the 90 day Bank Bill Rate (BBR).
For residential home loans at either a Owner Occupied or Investor level you would be looking at either a Standard or Base Variable rate, or their advertised Fixed Rates. Depending on the product / risk mix, it may be possible to negotiate on what you see advertised.
Hope this helps
Regards
Ken Olds

Comments

Thanks Ken

Hi Daniel. I don't believe so, as the comparison rate serves this purpose in Australia.

Comments

Thanks Ariel

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