Loans.com.au defies RBA rate decision
Australia’s biggest online lender loans.com.au today ignored the Reserve Bank of Australia’s decision to leave official interest rates on hold, slashing its 3-year fixed rate home loan by 32 basis points to a record low of 3.67 per cent (3.88 comparison rate).
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The move capitalises on market uncertainty about the future direction of official interest rates to lock in the cheapest 3-year fixed rate home loan in the market.
Managing Director Marie Mortimer said it was unlikely that these super-low fixed rates would continue for long.
“Uncertainty around the future direction of official rates presented an opportunity for loans.com.au to offer the cheapest fixed rate seen in our lifetimes and we took it,” Ms Mortimer said.
“Frankly, we think other lenders have been too timid and should be offering lower rates.”
“There is now a terrific opportunity here for borrowers to lock in a record-low fixed rate before market sentiment changes and 3-year rates start rising again.”
Last month, loans.com.au was one of a minority of lenders to promptly pass on the full 0.25 per cent RBA rate cut.
Homebuyers can borrow up to $500,000 under the new 3-year fixed rate and there is a $350 rate lock fee.
The offer is available to owner-occupiers who are repaying principal and interest.
Ms Mortimer said that with housing values in Sydney and Melbourne increasing 10 percent in a year and most other capital city markets remaining strong, homebuyers needed to seek out the cheapest rate to maximise their firepower.
“We have always known that the smartest borrowers are with us and this decision to cut our 3-year fixed rate to unheard of levels will put more money in their pockets,” Ms Mortimer said.
“With rates at record lows, homebuyers should be seriously considering fixing all or part of their mortgages to lock in these unprecedented numbers.”
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. https://www.loans.com.au