One of Australia’s non-bank lenders has cut the interest on its suite of variable rate products in a bid to enhance its competitive edge in the marketplace.
Yesterday, Homeloans announced it would trim its Ultra and Ultra Plus Loans by 8 basis points, taking the lender’s lead-in variable rate to just 5.89 per cent.
Additionally, rates on the MoniPower full doc loans have been reduced by 4 basis points on the Term Loan to 6.19 per cent and by 19 basis points on the Line of Credit to 6.29 per cent.
“We are focused on remaining a nimble, competitive alternative to the majors, both in price, features and service,” Homeloans’ general manager, sales Greg Mitchell said.
“It’s why we regularly review our rates and provide offerings that benefit both our broker network and home buyers.”
The rate drops also mean Homeloans’ split loan (‘combo loan’) proposition now has rates starting at 5.42 per cent per annum for a three year fixed loan – one of the lowest in the market.
The ‘combo loan’ deal enables borrowers to save up to a quarter of a per cent by combining the discount earned on a split loan with the savings on lower LVR loans.
“We’re serious about tackling our competitors head on – and rate drops such as these show we mean business,” Mr Mitchell said.
“But obviously having outstanding product features such as free redraw is also vital. In these uncertain economic times, it’s crucial to provide flexibility and enable borrowers to maintain control.”