Sydney-based mortgage manager, Iden Group, has a new loan reducer product offering for brokers which will shave up to 3% off owner-occupied interest rates.
The Rapid Home Loan Reducer product will allow brokers to bundle a client’s owner-occupied and investment loan together, giving the client access to owner-occupied rates as low as 2.5%.
According to Iden Group, a product ruling from the Australian Taxation Office (PR2015/2) allows the Rapid Home Loan Reducer product to operate with a ceiling rate on the investment loan – the RBA
’s cash rate plus 3.5% – and a floor rate on the owner-occupied loan as low as 2.5% – the RBA’s cash rate plus 0.5%.
The Loan Reducer calculator determines the level of discount possible on the owner-occupied loan as well as the interest rate on the investment loan. Rapid Home Loan Reducer is under licence from Loan Reducer.
Iden Group director, Barrie Gaubert says Loan Reducer is an exciting and innovative product, especially in a period of rising interest rates.
“We’re excited to release this disruptive and innovative product to our accredited brokers. We appreciate that interest rates is a currency that everyone understands, so we decided to provide qualified customers with an extraordinary discount on the home loan of up to 3%.
“Due to the uniqueness of this product Rapid Home Loan Reducer may not be for everyone, however, it is great to have a product that gives qualified customers the opportunity of home ownership sooner.”