One non-bank lender has launched an innovative new home loan in a bid to grow its share of the mortgage market.
Yesterday, Homeloans unveiled its ‘combo loan’ deal, which enables borrowers to save a quarter of a per cent by combining the discount earned on a split loan with the savings on lower LVR loans.
Speaking to The Adviser, Homeloans general manager Greg Mitchell said the new product, which has a starting rate of 5.99 per cent, provides borrowers with the flexibility of a variable interest rate and the reliability and security of a fixed interest rate.
Should borrowers not have the deposit to afford them a loan of below 75 per cent LVR, they can still save 0.15 per cent by fixing up to 50 per cent of their loan.
Mr Mitchell said the combo loan offer helps overcome the confusion and indecision which “currently defines the marketplace.”
“Borrowers know there are opportunities out there, but they are incredibly confused as to which is the best deal; they are undecided about whether to choose a fixed or variable loan, and they are very nervous about what is the right choice to make. It’s a real gamble,” he said.
Mr Mitchell said Homeloans is committed to being the lender of choice for borrowers, and to do that the lender needs to be innovative when it comes to its product suite.
“It is critical for non-banks to exercise product innovation. This proposition on our split loan, is just the latest in a number of offerings that Homeloans has provided to the market. Others include the flexible Accelerate loan, and the Self-Manager Super Fund loan,” he said.