Market leading online lender loans.com.au will pass on the full 0.25 percent rate cut to existing customers following the RBA’s announcement on Tuesday.
“Loans.com.au passed on the full rate cut to new business immediately and we are very pleased to be able to extend the rate cut to our existing customers,” said loans.com.au Pty Ltd Managing Director, Marie Mortimer.
Other lenders have decided not to pass on the full benefit of the rate cut to customers – at loans.com.au we have a proven track record of keeping rates low for our customers.
“It means they will save money every month on interest and own their home sooner.”
The loans.com.au Essentials home loan rate of 3.98 percent is 1.46 percent p.a lower than the average standard variable home loan rates announced by the Big Four banks in the wake of the RBA cut of 5.44 percent p.a, which means a loans.com.au customer with a $300,000 home loan and a 30 year term will have saved $94,789 over the life of the loan.
“Not all home loans are created equal and borrowers really need to check their contract to make sure they are getting a good deal,” Ms Mortimer said.
“The difference between interest rates and fees attached to the loans can add up to many thousands of dollars and years off your loan term.”
Ms Mortimer said loans.com.au customers had come to expect market leadership from the lender.
“Loans.com.au is very happy to be recognised as offering the cheapest home loan and our customers expect nothing less than the full rate cut to be passed on,” she said.
“We already had one of the most competitive variable interest rates in Australia and passing on the RBA cut in full will help us stay in top spot.”
Image credit: Scott Davies