Non-bank lender Homeloans has cut the rate on its Ultra Plus loan for new business by five basis points – despite the Reserve Bank deciding yesterday to keep the cash rate on hold.
The loan is now available from 4.74% per annum. The comparison rate 5.08%, based on a $150,000 loan amount over 25 years.
“We’re on the record as stating we are serious about tackling our competitors head on – and a rate cut such as this reinforces our commitment to offering products that benefit our brokers and their customers,” said Greg Mitchell, Homeloans sales general manager.
The lender recently launched the low-rate Homeloans Classic and is also developing a low rate, fully-featured loan with 100% offset, Mitchell said.
“We continue to introduce different products designed to suit customers’ unique needs. The fact Homeloans has various funding lines enables us to offer a wider suite of products, covering a wider range of lending policies.”
Homeloans recently reported a strong six-month financial result, with a 12.4% increase in lending volumes and a net profit after tax on a normalised basis of $3.5m.