Non-bank trims fixed and variable rates

by AB04 Aug 2014
A non-bank lender has announced further cuts to its fixed and variable rates.

Homeloans has announced it will cut rates on its Homeloans Ultra 2-5 year fixed rate product, its Homeloans Optima 1-5 year fixed product and its Homeloans Classic variable rate loan.

The lender trimmed its Ultra and Ultra Plus product range from between 5bps and 77bps, bringing the product to as low as 4.79%. It cut between 10 and 50bps from its Optima range, bringing rates as low as 4.78%. Homeloans also cut its Classic product by 5bps, bringing the loan's new rate to 4.79%.

The lender is offering discounted fixed rates on combo loans, allowing borrowers to fix up to 50% of their loan. Homeloans general manager of national sales Ray Hair said the product was a good option for borrowers uncertain about whether to lock in their rate.

"The combo loan rate is a very popular option with borrowers who are interested in the fixed rates but are apprehensive about the commitment. It minimises the uncertainty and gamble for those borrowers, provides flexibility and enables them to maintain control," he said.