I was served an advertisement recently by a major banks for one of their credit cards which got me thinking – do credit card interest rates move in line with changes to the RBA cash rate? As it turns out – they definitely do not.
Credit card interest rates have remained stubbornly high and largely unchanged. Despite the broader downward trend in mortgage rates over recent months, many credit cards are still charging interest rates of 12–14% for standard low rate cards, and 18-22% for reward or premium cards – levels that haven’t shifted in years.
Roughly 14% of Australian credit card holders typically carry a balance from one month to the next, meaning they incur regular high interest charges. Given there are circa 12 million credit card holders in Australia, over 1.5 million people are being stung by this.
In this week’s newsletter, we take a look at a real life case study that came to us during the week from a grateful referrer.
We were recently introduced to a client, who for the purpose of this case study we’ll call Mary. The following account comes courtesy of the valued referrer who introduced us to Mary.
Mary was on the verge of losing both her land and build contracts due to complications with her finance approval.
Her solicitor had advised her not to proceed with signing the land contract because the lot was under a put and call option, so a standard finance clause couldn’t be included. With no safeguard in place, the land contract was cancelled, placing the already-signed build contract in serious jeopardy.
To make matters worse, her existing broker told her she didn’t have the available funds to pay the required land deposit, effectively halting all progress on the purchase.
That’s when Mortgage Domayne stepped in.
Within just two weeks, the Mortgage Domayne team worked quickly and decisively to:
- Unlock equity from Mary’s existing property to cover the land deposit
- Secure an unconditional finance approval, giving her the confidence and certainty she needed to move forward, and
- Liaise directly with her solicitor to arrange a new land contract, ensuring everything progressed smoothly and without further complications.
No other broker had been able to provide a viable solution, let alone execute it with such speed and precision.
Thanks to Mortgage Domayne’s expertise and commitment, Mary’s build is now back on track. The team didn’t just save the deal, they made sure she could move forward without compromise, stress, or further delays.
This is what Mortgage Domayne does best: solving complex finance problems with clarity, creativity, and care.
At Mortgage Domayne, we welcome feedback about the service we provide your clients. If you have any experiences you’d like to share, don’t hesitate to send them through to mark@mortgagedomayne.com.au.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
