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Variable rates held steady again this week with both the 30 Day and 90 Day rates tightening a fraction to now sit at 7.5700% and 7.7717% respectively. There certainly seems to be a greater stability surrounding the bank lending rates in recent times but the gap between these and the official cash rate remains stubbornly high.

Rates have come down fractionally this week with the 30 day rate now in to 7.5833% and the 90 day rate tightening to 7.7867%. Fixed rates over 1-5 years continued to fall and are down by 0.14%-0.29% to range between 7.29% and 7.73%.

John Stewart, CEO of NAB, commented last Friday that he believed, on balance, further rate rises by his bank by greater than further official rate movements looks unlikely. This is an interesting statement and suggests NAB has formed the view that credit markets have become more stable with the bank cost of funds now more predictable.

BBSW rates converged this week with the 30 day rate edging up to 7.5867% and the 90 day rate coming in slightly to 7.7967%.

The nervy market reaction to higher inflation figures reported the week before has worn off with fixed rates coming back down again almost to where they were beforehand.

Fixed rates over 1-5 years fell by up to 0.29% and now range between 7.45% and 7.87%.

No Application Fee on Citibank Commercial Mortgages - ends this month.

Discount Variable interest rate for loans between $500K and $1.5million (add 0.20 percent for low doc )

Applicants: New to Bank Customers only

Full doc up to 75% lvr

Low doc up to 65% lvr (investment only)

Waived Application Fee (if settled within 90 days from submission, a saving of 0.25 percent of loan amount) . Loan must qualify as a commercial express loan for no app fee.

No on-going Fees on variable rate products

Application must be received by 31st May 2008

What Do We Mean By Rollover Risk?

A commercial lender we represent offers commercial property borrowers a loan for a 25 year term. Borrowers can elect to take the first few years as interest only, which most tend to do.

Most other commercial lenders offer short term, interest only, loans. These loans require repayment or re-negotiation at the end of the term, which is usually 3 or 5 years.

The “Rollover Risk” applies to borrowers who have a short term loan reaching maturity. The borrower faces the following uncertainties:

Think Tank Interest Rates Outlook

The Bank Bill Swap Rate has settled into a narrower range in the last few weeks. BBSW30 is up slightly this week to 7.6400 percent with BBSW90 edging out again to 7.8700 percent. Fixed rates moved out a little more to range between 7.42 and 7.84 percent.

For a limited time, Suncorp is offering its Commercial Small Business 2 Year Fixed Rate at a special rate.

The offer is available on all full & low doc applications received from Tuesday 15th April 2008.

The offer is available on Suncorp Small Business 2 Year Fixed Rate loans with:

• Minimum loan size of $250,000
• Must be new borrowings (no internal refinances)
• Available on both FULL & LOW DOC loans
• No discount on fees are available
• Add Loans are eligible, provided the minimum loan size of the offer is met