Enquiries for business and commercial loans have soared in the wake of the Reserve Bank of Australia (RBA) reducing official interest rates, says leading mortgage broker Priority Lending.
Priority Lending Chief Operating Officer Dean Rushton said an examination of major mortgage industry web traffic using online measurement company Experian Hitwise showed a 133 per cent rise in searches for variations on ‘business loan’ since November 1, 2011.
Mr Rushton said Priority Lending’s own website had also seen enquiries for commercial loans increase over the past month.
“The first interest rate cut by the RBA in more than two and a half years has obviously had a positive impact,” he said.
“People are becoming more confident about taking on credit and they are looking to invest in their businesses.
“The prospect of interest rates rising has gone and there’s a strong possibility of the RBA further lowering the cash rate at its final board meeting of the year next month.
“Interest rates for commercial loans have also become more appealing with competition between the various lenders resulting in more attractive loan products being offered.”
Mr Rushton said data from Experian Hitwise had also noted a 78 per cent spike in searches for variations on ‘personal loan’ over the past four weeks.
“While personal loan interest rates don’t fluctuate like home loan variable rates, the increased interest in them is another by-product of greater consumer confidence and the competition between lenders.”
Source: Priority Lending
