Powered by MOMENTUM MEDIA
the adviser logo
Growth

Loan Ave to offer 3% variable rate discounts

by Huntley Mitchell5 minute read
Loan Ave logo

Loan Ave has officially launched a revolutionary new product that offers customers heavily discounted home loan rates.

Earlier this year, the mortgage manager became a licensee of Loan Reducer – an online calculator designed to provide borrowers holding an owner-occupier loan and an investment loan with a lower home loan rate by leveraging the investment interest rate against the lender’s desired total return on funds.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

Loan Ave has rebranded the white-label product to ‘Rapid Freedom’, and says customers could receive discounts of up to three per cent for standard variable rates through its new offering.

“Once upon a time, people purchased their home armed with the motivation of that great Australian dream – owning your own home,” Loan Ave director Paul Collins said.

Advertisement
Advertisement

“In today’s market, savvy buyers must be armed with the best financial tools.”

Mr Collins is concerned that most people still feel a mortgage is something they’ll be chained to for the rest of their lives, and said there has been little innovation in this area of the market.

“Rapid Freedom is set to challenge current thinking by helping people restructure their loan portfolio to achieve their goals and get ahead sooner,” he said.

“This is an opportunity to take advantage of record-low interest rates and make serious headway down the path to home ownership.”

Loan Reducer is a patent-protected system that allows the lender to establish their required interest margin for risk against each loan, set the overall interest rate required, and calculate the appropriate interest for each loan.

The calculator operates with a ceiling rate on the investment loan (the Reserve Bank’s cash rate plus 3.5 per cent) and a floor rate on the owner-occupied loan as low as 2.5 per cent (RBA cash rate plus 0.5 per cent). The Loan Reducer calculator enables a lender to set their required interest rate return – arriving at the level of discount possible on the owner-occupied loan and the interest rate in the investment loan.

[Related: AFG launches new white-label offering]

Loan Ave to offer 3% variable rate discounts
loanavelogo  x
TheAdviser logo
loanavelogo  x

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

daniel tuttlebee resimac asset fInance ta l27zun

Resimac takes controlling stake in Sonder

Resimac Asset Finance has expanded its acquisition stake in equipment finance business Sonder Equipment Finance...

READ MORE
asic ta 2

ASIC seeks ‘common-sense solutions’ to breach reporting

The Australian Securities & Investments Commission (ASIC) has committed to “improving” the operation of the...

READ MORE
andrew mills homestart ta htfetw

HomeStart drops graduate loan deposit to 2%

HomeStart Finance, a non-bank lender backed by the South Australian state government, has lowered the deposit hurdle...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more