Yellow Brick Road has launched a no-fee home loan, and founder Mark Bouris has challenged major banks to beat the product's rate.
The Better Basics Home Loan will carry a standard variable rate of 6.98% with no monthly or annual fees, no application fee and no redraw fee. The product has a maximum LVR of 95%, and is available for purchase, construction or refinance. The company said the no-fee offer is also available for owner-occupied investment properties.
YBR founder and executive chair Mark Bouris challenged major banks to undercut the product's rate, saying the banks had aggressively competed with one another, but not with the non-bank sector.
"We're calling on the banks to drop their rates and beat our offer. If the banks really want to compete, Yellow Brick Road is giving the opportunity today," he commented.
Bouris argued that while the majors had made significant moves on fixed rates, the products may not be the best option for consumers with a potential RBA rate cut on the horizon.
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