Lender rolls out 3.29% mortgage

by Melanie Mingas28 May 2019

A new mortgage product offered at 3.29% variable (3.34% comparison) has launched in anticipation of an RBA rate cut “in the next two months”.

Funded by Mortgage House, the product launched with uno Home Loans today and, at the time of going to press, the early bird rate is the lowest on the market by 10 basis points.

The loan is offered to prime vanilla owner occupiers on PAYG, with 80% LVR or lower. The loan is P&I only and applicants must have a clear credit history, a CAT 1 location and a maximum requirement of $1m per borrower. The fees applicable are exactly as per Mortgage House prime loans and the offer is valid for deals submitted prior to 30 June 2019.

Mortgage house CEO Ken Sayer said, “We have launched this with uno Home Loans and we will definitely have three or four more partnerships before the end of this calendar year. Our proposition has been well received.

“This is an early bird rate, for which we are taking the risk ourselves ahead of an anticipated rate drop from the RBA next week,” he added.

In what Sayer calls the “unlikely event” of a rate hold or rise, the early bird rate will remain in place. If the RBA reduces the rate in two months then these customer won’t get the rate reduction again. If they do not reduce the rate then the offer stays as is.

He said, “We are fairly confident. If [the cut] isn’t in June it will be the following month and then the customers get a good kick along.”

“Our guys [internally] tell us there will be at least two and possibly three [cuts] before the end of the year, but at least two,” he added.

The launch is also good news for mortgage brokers, who can now take advantage of a suite of new tech tools when lodging applications.

Launched as a brokerage in 1986, Mortgage House started funding its own loans in 2007. Now the firm’s USP includes technological innovations to enhance broker processes and efficiency.

“What I hope to do is to increase broker conversions by increasing the automation and ease of customer follow up,” Sayer said.

“All the stuff that used to drive me crazy 30 years ago still drives brokers crazy today. Changing policies, the highs and lows, one day lenders want to do a 95% LVR, the next they don’t. It’s hard work to keep ahead.

“We can offer cradle to grave. If the broker has their own CRM, we can offer the faster turnarounds. If they have their own CRM and they have their own data entry, we can offer just simple products, just competitive home loans. It depends how big or small the brokerage is. We can reverse engineer into what they want,” he added.