One of Australia’s most lauded home loans, loans.com.au’s Dream Home Loan, just got even better with its Blackboard Special variable rate of 4.54 percent pa extended to Loan to Value Ratio of 90 percent.
The Dream Home Loan is the winner of the Best Value Variable Home Loan and Best Value Full Feature Variable Home Loan categories by online comparison site Mozo, and holds the title of Best of the Best Cheapest Home Loan 2014 from Money magazine.
It has been rated Five Stars for Outstanding Value by Canstar since September 2011.
Extending the Blackboard Special to 90 percent LVR gives borrowers a 0.15 percent discount which is a saving of $36 per month in interest, or $12,960 over the life of a $400,000 loan.
Mr Kim Cannon, managing director of Firstmac, the financial powerhouse behind loans.com.au, said the move was designed to keep the pressure on the competition.
“It is an extremely competitive mortgage market at the moment with interest rates dropping to record lows and lenders working harder than ever to attract borrowers,” he said.
“Even though the Dream Home Loan is recognised as the market leader for value we are not going to rest on our laurels.
“We want to make sure loans.com.au holds its place at the top of the ladder and keeps doing what it does best, driving competition in the home loan market and delivering outstanding value to customers.”
Mr Cannon said the true measure of good value in a home loan was having a comparison rate very close to the interest rate.
“Borrowers should take care to make a valid comparison between interest rates when they are choosing a home loan otherwise they could find themselves out of pocket by tens, or even hundreds, of thousands of dollars,” he said.
“It’s no good getting a very low upfront interest rate if it only applies for a short initial term of the loan then reverts to a much higher rate for the duration of the life of the loan. The comparison rate will show the true cost of the loan and that’s how to identify the best deal.”
The loans.com.au Dream Home Loan Blackboard Special has a comparison rate of 4.56 percent pa. The extension to 90 percent LVR is available for a limited time.