All Topics / Finance / Interest Rate Margin

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  • Profile photo of McHenryMcHenry
    Member
    @mchenry
    Join Date: 2005
    Post Count: 45
    April 24, 2006 - 1:06 am

    I am looking at wrapping and would like to know what is a base interest rate that i can state in the contracts I charge a margin on.

    I do not wish to use a mortgage interest rate as this is a problem if I have not borowed funds for the IP.

    For example surely the RBA has a certain rate that banks use to set their rates on, so if the banks are 1 % above the rba rate i could state I charge 3% above the rba rate or similar.

    Thanks

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 24, 2006 - 1:33 am

    We use the Australian Reserve Bank Cash Rate + Margin.

    Rate is currently 5.50% and is easy to track. http://www.rba.gov.au

    Richard Taylor
    Residential & Commercial Finance Broker
    **Lodoc Commercial loans from 7.19%**
    Licensed Financial Planner
    http://www.yourstatefinance.com
    [email protected]
    Ph: 07-3720 1888

    Richard Taylor | Australia's leading private lender

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