Loans.com.au has delivered the Australian home loan market a variable interest rate with a three in front with its decision to pass on the RBA’s 0.25 percent rate cut in full to new customers immediately.
“Following the RBA’s move to cut the cash rate this month, we have decided today to pass on the full rate cut to new business, effective immediately,” said loans.com.au Pty Ltd Managing Director, Marie Mortimer.
“We are very pleased to be bringing to the market a variable interest rate that starts with a three, which is a genuine rate with no ongoing fees and no hidden catches.”
The rate cut means the Dream Home Loan Essentials has an interest rate of 3.98 percent p.a, which will apply to new loans and applications already in progress. The cut takes the Dream Home Loan Offset interest rate to 4.02 percent p.a.
“There is tremendous competition in the home loan market and loans.com.au is accustomed to leading the market on low interest rates,” Ms Mortimer said.
“It’s a first for loans.com.au and a first for the Australian home loan market that will enable customers applying for new loans to get more for their money.”
Loans.com.au was one of the first lenders to pass on the RBA’s full 0.25 percent rate cut in February. For more information visit https://www.loans.com.au.
Ms Mortimer said loans.com.au was considering its position on how the rate cut would apply to existing customers and hoped to make an announcement in the coming days.
“For many months there has been much speculation about interest rates with a three in front, and some lenders have used promotional rates with a three to win new business, but these loans tended to work out quite expensive,” Ms Mortimer said.
“Customers are smart enough to do the sums to determine what is a genuinely good deal on their home loan interest rate.”