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Non-bank sharpens pricing

by Staff Reporter11 minute read
The Adviser

Jessica Darnbrough

In a bid to inject greater competition into the mortgage market, one of Australia’s non-bank lenders has cut 20 basis points from its entire home loan suite.

Effective from today, LJ Hooker Finance will cut 20 basis points from its Classic Home Loan range.

In addition, LJ Hooker Finance’s ‘Special Spring Rates’ offer new customers with an LVR of 75 per cent or lower, a 20bps life-of-loan discount on the Standard Classic Home Loan and Pro Pack Classic Home Loan. The offer is also available on LJ Hooker Finance’s low doc version of these products.


LJ Hooker Finance’s general manager Peter Bromley said the rate cut would ensure the lender’s products could go head to head with the banks.

“The subdued mortgage market requires an innovative approach to attract customers. However, lenders need to provide their brokers with attractive products and services that also promote responsible lending,” Mr Bromley said.

Under LJ Hooker Finance’s ‘Special Spring Rates’, new borrowers, with a minimum 25 per cent equity, wishing to purchase or refinance can access interest rates of 6.79 per cent per annum through the Standard Classic Home Loan and 6.69 per cent per annum through the Pro Pack Classic Home Loan.

LJ Hooker Finance ‘’Special Spring Rate’ is effective for all loan applications received from 1 August to 30 October 2011, which are formally approved by 15 November, 2011.

“There is no doubt that competition between the big banks is intense at the moment. Unfortunately, in many instances, non-banks are forgotten. We wanted to change this," Mr Bromley told The Adviser.

“At LJ Hooker Finance we have taken our Canstar Cannex 5 star rated product and applied a rate discount without detracting from broker commissions.”

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