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Smaller lenders challenge majors

by Staff Reporter8 minute read

Smaller lenders are going head to head with the majors, ramping up their home loan offering in a bid to grab further market share.

Opportune Home Loans plans to offer homebuyers a competitively priced standard variable home loan.

The company will market the standard variable rate at 6.24 per cent, 25 basis points cheaper than NAB at 6.49 per cent.

"We want to be the next generation of Aussie, RAMS and Wizard," the company’s principal Paul Ryan told the Herald Sun.


"We're expecting to double our lending to $500 million this year."

However, Opportune Home Loans is not the only lender to ramp up its lending capabilities.

New Loan, a direct lending arm of listed financial services group First Folio, has said it will offer a variable interest rate mortgage, primarily to investment borrowers, at 5.89 per cent.

First Folio's managing director Mark Forsyth said New Loan had obtained funding lines through ING's wholesale arm and Bendigo Bank.

"We've got unlimited funding," he said.

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