Non-bank offers market-leading commission, drops rates

by Julia Corderoy28 Apr 2015
Non-bank lender and “staunch supporter of brokers” Mortgage Ezy has unveiled a suite of fixed rate cuts as well as an increased commission structure.

Speaking exclusively to Australian Broker, Mortgage Ezy chief executive Peter James says the lender has slashed its one, two and three-year fixed rates on its Economizer product below 4%.  

The one-year fixed rate has been reduced to 3.79%, the two-year has been reduced to 3.89% and the three-year fixed rate has been reduced to 3.94%. This comes after the non-bank slashed its Economizer variable rate below 4% in February, to 3.99%. 

James says this isn’t only the lowest headline rates he has seen, but it also comes with market-leading comparison rates.

“The headline rate for all of those is the lowest that I can see, but the big news is the comparison rate,” he told Australian Broker. “Our loans have no on-going fees and the reverting rate is very, very low.”

“The headline rates grab the customer’s attention but the comparison rate is a little bit more accurate in what you can expect to pay for the life of the loan.”

The one-year fixed loan has a comparison rate of 4.28%, while the two-year and three-year have comparison rates of 4.18% and 4.17% respectively. 

Mortgage Ezy has also announced an increased commission structure on its Prime fixed rate product, increasing upfront broker commission to a market-leading 1.3%.

James says the decision to cut rates and up commissions was to highlight Mortgage Ezy’s commitment to the broker channel.

“We are committed to not only have a low rate offering for brokers today, but from an on-going basis. So, brokers can rest assured that we will continually monitor where rates are and drag them lower. Secondly, Mortgage Ezy also prides itself in not just paying market leading commissions, but we pay our commissions within 24 hours of settlement and that is a huge thing for brokers waiting up to two or three months.  

Mortgage Ezy has been a staunch supporter of brokers; we have no cross-channel conflict. Brokers are the only way that we go to the market. We intend to continue to offer market leading rates and best in class commission to those brokers that support us and their clients.”

James added that the non-bank will follow up with an additional rate cut next week if the Reserve Bank decides to cut the official interest rate.

“We are not jumping in response to possible rate cuts, we are setting our rates and if there is a rate cut, we will be chopping our variable rate by the full RBA decrease,” he told Australian Broker.

All new rates and commission are available immediately on all applications.
 

COMMENTS

  • by Paul 28/04/2015 10:28:26 AM

    The fact that a lender can lower it's bottom line on both sides at the same time (ie increasing costs and lowering sale price) just goes to show how hard we're getting screwed by the lenders at large.