By: Jessica Darnbrough
Carrington National is ramping up its competitive position in the industry with the announcement that it will pay the lenders’ mortgage insurance premium on all prime loans up to 90 per cent loan-to-value ratio.
The non-bank lender, which already offers a cheaper standard variable rate than the big four, hopes its innovative product announcement will make it a viable alternative to the majors.
Carrington National’s managing director Gino Marra told The Adviser that the non-bank sector has emerged from the global financial crisis stronger and ready for action.
“We are determined to become more competitive against the banking sector. Non-banks have traditionally been very innovative and product focused. Now as liquidity starts to filter back into the market, we have the chance to not only be cheaper than the big four, but more innovative as well,” Mr Marra said.
According to Mr Marra, the decision to pay the LMI on all prime loans up to 90 per cent LVR will help both first home buyers enter the market as well as established borrowers refinance their mortgage.
"It will also be beneficial to borrowers whose loan was originally 80 per cent but has dropped in value, because it will allow them the opportunity to refinance without significant costs," he said.