One of Australia’s non-bank lenders has cut up to 100 basis points from its suite of custom products.
Yesterday, Liberty announced it would slash up to 1 per cent across its entire range of non-prime mortgages.
This out-of-cycle rate reduction follows this month’s Reserve Bank decision to keep rates on hold, and a recent report from Fitch Ratings concluding that homeowners need relief, with national mortgage delinquency rates rising from 1.20 per cent to 1.45 per cent in the past 12 months.
Interest rates for new custom full-doc customers will start from 5.74 per cent per annum.
In addition, low doc interest rates for self-employed borrowers will also be slashed and will start at 5.99 per cent per annum.
“We know people are feeling the pinch and we’re doing our bit to make our custom loans more affordable. Combined with our great prime rates starting at 5.34 per cent per annum, our customers and business partners have more choice and flexibility than ever before,” Liberty’s national sales manager John Mohnacheff said.
Liberty also announced it would increase its broker commissions to 0.7 per cent upfront for all prime loans.