The non-bank lender has cut rates by up to 0.50 per cent and increased trail commissions on all loans.
Mortgage Ezy has moved out-of-market by reducing interest rates by up to 0.50 per cent for new borrowers, despite the Reserve Bank of Australia deciding to hold the cash rate for the month of October.
The interest rates have dropped by an average of 25 basis points across loans in its whole suite - with some loan products seeing larger reductions than others.
The lowest variable rate broker clients can now access is 5.44 per cent on prime loan refinances, or 6.19 per cent on self-managed super fund refinances.
The non-bank said the decision was made following the “disappointing” move by the RBA to keep the cash rate at 3.60 per cent (and forecast shifting to reduce the number of upcoming rate cuts in this cycle) - and aims to provide “meaningful relief” a time when affordability challenges remain high.
Peter James, the group executive chairman and founder of Mortgage Ezy, commented: “We’re not waiting for the RBA’s direction, we’re taking action.
“By slashing rates… we’re delivering sharper pricing for borrowers.”
As well as reducing rates, the lender has also increased trail commissions by 0.05 per cent on all loans.
The lender currently enables brokers to choose how they are remunerated; either by receiving all their commission up front or by choosing to split between upfront and trail commissions.
It has said that it will now move to increase trail by 0.05 per cent across all products.
Brokers can now tailor their remuneration between a higher upfront of up to 1.05 per cent or a higher trail up to 0.40 per cent, paid twice-weekly.
The lender said the decision to reduce interest rates for borrowers while increasing trail commission for brokers aims to ensure both customers and their brokers receive benefits.
Speaking of the changes, Vlad Murphy-Mulcahy, the head of distribution at Mortgage Ezy, stated: “Brokers are at the heart of everything we do. They’re on the front line, helping Australians navigate complex lending conditions and achieve their homeownership goals.
“We’ve built our business around listening to brokers, responding quickly, and delivering real value, not just through innovative products, but through meaningful support.
“This latest increase in commissions is another step in that journey, ensuring our brokers are rewarded and recognised for the vital role they play in helping their customers achieve their goals.”
James added that the move forms part of its “broker-first strategy” (which included removing clawbacks across its top funding lines in 2023) and its wish to be one of the most broker-friendly and borrower-focused models in Australia.
The group executive chairman and founder said that Mortgage Ezy was showcasing its commitment to brokers and their clients by providing “more sustainable income for brokers” while offering reduced interest rates for new borrowers.
“This industry-first move showcases our commitment to our brokers and their clients in the belief that when brokers thrive, the entire industry benefits.”
The non-bank lender has been evolving its offering since launching in 2001 and recently became a fully securitised lender, achieving residential mortgage-backed securities (RMBS) status and enabling it to have more control over it lending solutions.
The group now only relies on banks to provide the warehouse facilities that facilitate its own loans, which will be securitised in the company’s bond issues, to be known as the Pearl series.
The lender said it hoped that its move to become fully securitised and take greater control of its service proposition would result in it being appointed to more aggregator panels, thereby “expanding access for brokers across Australia and enabling more clients to benefit from its specialist products and common-sense lending philosophy”.
[Related: Mortgage Ezy Group becomes a fully securitised lender]
