More lenders are starting to reduce their variable rates outside of any movements by the Reserve Bank.
Yesterday, Australian First Mortgage (AFM) announced it would reduce the variable interest rate on all of its full doc loans by at least 5 basis points.
The lender also said it would trim 8 basis points from loan amounts over $200,000 with an LVR between 75 per cent and 90 per cent.
Speaking about the changes, AFM’s director Iain Forbes said the move is part of the non-bank’s continuing commitment to the third party distribution channel.
"While lending is competitive, AFM promises to continue to be flexible in both lending and product," he said.
AFM, which this month celebrated its 10th birthday, specialises in full doc lending, SMSF loans, commercial property finance, leasing hire purchase as well as low doc loans.