Mortgage EZY has thumbed its nose at the RBA with the release of its uCAP variable fee free home loan product.
The product, which has a current interest rate of 7.36 per cent, provides borrowers with an iron clad guarantee that the interest will not exceed 7.49 per cent within 2 years of settlement, no matter what the Reserve Bank does with the official cash rate.
Mortgage EZY’s head of sales Chris Wisbey said the home loan is not the same as a fixed rate because it does not have the traditional break fee.
Other standard features of the uCAP variable include a 100 per cent offset account, an LVR of up to 90 per cent, an interest only option of up to 10 years and an upfront and trail commission at the 7.36 per cent rate.
“This program isn’t something that’s completely new to the market. We believe the key ingredient in taking the uCAP Variable from concept to successful consumer adoption is only going to happen through the professional broker channels in Australia,” Mr Wisbey said.
“Throughout the next eight months what brokers will see is that the mortgage management sector is back in the business of being everything a bank isn’t. That’ll mean we’ll be creating genuine lending options for consumers rather than headlines to ease our corporate consciences.”