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Bank offers 'low' rates and 100 per cent offset account

by Staff Reporter9 minute read
The Adviser

Bank of Sydney has revealed plans to offer borrowers a variable rate of 4.69 per cent.

The new third-party lender is currently conducting a "soft launch" with some boutique aggregators and select brokerages ahead of a full launch in early 2015.

This is designed to give it a chance to resolve unexpected problems and test the online lodgement platform.

Consultant Steve Sampson said Bank of Sydney would provide more competition through its pricing and products.

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"Borrowers will benefit with a low variable interest rate of 1.69 per cent off our standard variable rate for the life of the loan. This currently equates to 4.69 per cent per annum," he said.

"We offer a free 100 per cent offset account and an annual fee-free credit card. We'll also give the customer a $500 cashback on the package after they settle. Standard application fees and standard valuation fees are covered too."

Mr Sampson confirmed that Bank of Sydney would pay an upfront commission of 0.70 per cent and trail from year one of 0.20 per cent, as reported in The Adviser in August.

"We've also listened to what irks brokers, and one of their major gripes is clawback provisions after all the hard work has been done," he said.

"To this end we think we have one of the fairest clawback policies in the market at 70 per cent of the upfront in year one only."

Mr Sampson also revealed that the bank is negotiating with larger aggregators ahead of its full launch.

[Related: Bank of Sydney records minimal loan growth]

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