Online mortgage provider, loans.com.au, today officially launched its brand and product to the Australian market with an aggressive interest rate, set to ramp-up competition and liberate Australian borrowers from the choice-poor regime dictated by the major lenders.
loans.com.au is proudly 100% Australian-owned and the online vehicle of established and independent mortgage funder, FirstMac Limited. It provides simple, fully-featured mortgages with highly competitive rates to make it easier for people to own and invest in property and ensure Australian's have greater choice when selecting a lender.
Managing Director Mr Kim Cannon said that in response to the major lenders' attempts to kill off competition, loans.com.au is releasing the market's lowest online offering.
"loans.com.au's new variable rate of 6.69% pa will have a special 0.11% discount for new loans during the month of June, making it 6.58% pa, the lowest online mortgage rate; and the 0.11% discount applies for the life of the loan," Mr Cannon said.
"Our competitive rates are not the only weapon in loans.com.au's arsenal," he said.
"We're a serious competitor ready to meet the major lenders head on in providing Australian borrowers with greater choice, lower rates and excellent features on their home loan.
There has been much speculation that recent moves in the industry may be the start of a price war, and loans.com.au's presence in the market will help ensure that consumers are not the casualties of any short-term assaults by the major lenders.
Rather, loans.com.au will create a position where borrowers will emerge the victors from industry skirmishes.
Variable interest rates have been kept artificially low to entice borrowers through short-term incentives.
loans.com.au will not use any covert tactics like this. Our loans will track the official RBA cash rate for the first five years. They will only move if the RBA rate moves and the rate movement will match the RBA's.
Unlike other online mortgage providers, loans.com.au will also offer borrowers a 100% redraw offset account attached to their loan. So their money can work for them - not their banks.
The advanced technology loans.com.au has invested in, and will continue to enhance, will ensure its customers can access and enjoy all the transactional features they need attached to their loan.
As more people turn to the internet for their everyday life, they are becoming increasingly comfortable with sourcing their home loan online.
While we can look at instances where other online mortgage providers have failed in the past, I think it was a case of those providers possibly being ahead of their time.
loans.com.au benefits from the stability of FirstMac's funding from investors, including a cornerstone investment in FirstMac's RMBS program totalling $1.4 billion since 2008 from the Federal Government's Australian Office of Financial Management (AOFM).
The support the AOFM offered competition in the mortgage market during the GFC and the recovery period has ensured Australian borrowers have more choice when it comes to their home loans.
It has meant that a few lenders have not been able to dictate the terms and rates available to consumers. loans.com.au is set to extend this competition."
Mr Kim Cannon is available for interviews.
High resolution images available on request.
About loans.com.au introductory mortgage product
loans.com.au will offer a variable interest rate of 6.69% pa for new home and investment property loans.
For the month of June, borrowers will receive a 0.11% discount - making loans.com.au's rate of 6.58% pa the lowest in the market for a fully featured mortgage that also rate tracks with the official RBA cash rate for the first 5 years.
loans.com.au's mortgage also comes with zero applications fees, a 100% redraw offset account with a linked Visa debit card, and unlimited free online transactions.
Applications can be made online at loans.com.au or by phone only.
For all media and analyst enquiries, please contact Duncan Macfarlane, Public Relations and Communications Manager for loans.com.au, on 0434 184 264 or: