Australia’s largest online lender loans.com.au today said borrowers disappointed by the Reserve Bank’s decision not to cut the official cash rate should move to lock in a rate cut for themselves by shopping around online.
Managing Director Marie Mortimer said that a typical cut to official rates was 0.25 per cent but many borrowers from Big 4 banks could save a much larger amount just by refinancing with loans.com.au where the variable rate on its Essentials product was 3.39 per cent (comparison rate 3.41 per cent) for home purchases.
“It is always exciting when the Reserve Bank cuts rates but the rewards for borrowers who are willing to do their homework and consider the online opportunity with loans.com.au is so much bigger,” Ms Mortimer said.
“They just need to reject the assumption that the banks are the first stop to borrow money for a home and search out a better deal.”
The Big 4 banks’ standard variable rate to owner occupiers with an offset account currently averages 5.26 per cent (comparison rate 5.39 per cent), compared to just 3.49 per cent (3.51 per cent) at loans.com.au.
Ms Mortimer said that loans.com.au had an easy application process and offered the free property reports and other services that the banks were promoting but with much lower rates.
It pioneered online mortgage lending and is aiming to rapidly drive growth in online lending from less than 5 per cent of the market today to more than 25 per cent.
Loans.com.au also offers fixed rate car loans at much cheaper rates than the major banks.
Loans.com.au offers innovative online finance products backed by Firstmac, Australia’s largest non-bank lender, with 35 years’ experience and $8 billion in mortgages under management.
Loans.com.au has five stars for Outstanding Value from Canstar, and was named the Best of the Best Cheapest Home Loan and Cheapest Flexible Home Loan 2015 by Money magazine. It holds Financial Review Smart Investor’s Blue Ribbon Award for the Best Property Investment Loan - Variable 2015.
Image Source: Image Library of RBA website