Allstate Home Loans has announced it will increase the discount on some of its variable rate home loan products.
According to a company statement, new variable fully verified loans over $250,000 with an LVR less than 80 per cent will be discounted so that the interest rate is cheaper than loans under $250,000 or with an LVR greater than 80 per cent.
Allstate’s general manager Tony Shields said the new rate discount would reward borrowers who have a larger deposit or greater equity in their properties.
“The risk involved in holding fully verified loans under 80 per cent is far less than those above 80 per cent, and the interest rate should reflect this reduced risk,” Mr Shield said.
“This is the type of business we are encouraging all broker to write.”
Mr Shield said the new discounted variable rate would be available from 1 March.
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