Non-bank lender, intouch Finance, has thrown down the gauntlet to the majors, launching a standard variable rate of just 7.07 per cent.
The rate forms part of the lender’s Premium Home Loan and is up to 0.72 per cent below the majors’ average standard variable rate.
The non-bank lender’s chief executive and founder Paul Ryan said the loan also boasts no application fees and no annual fees.
“The fact that it has no annual fees is a significant difference to the banks discounted rates,” Mr Ryan said.
“The non bank sector is alive and well. The intouch Premium has all the bells and whistles, you can borrow up to 80 per cent of the value of your property, access to redraw facilities, there is a 100 per cent offset account and you have all the capabilities you need in a home loan.”