Non-bank cuts rates, ups commissions

by Maya Breen07 Apr 2015
A non-bank has further cut rates and increased upfront commission on one of its popular home loan products.

Homeloans has slashed rates on all new Ultra fixed term loans, with its three-year fixed rate on split loans starting from 4.09% (comparison rate 4.73%) for owner-occupier loans.
Homeloans has also increased upfront commissions on the Homeloans Ultra range by 10bps to 70bps and will cover the cost of one standard valuation up to $300 at conditional approval.
“We have been working hard to enhance the appeal across our product suite, highlighted by the multiple rate cuts to date this year,” said Homeloans general manager sales, Ray Hair.
“We are delivering on what brokers are telling us is important, including competitive product and remuneration and greater local sales support.”
Homeloans recently announced rate reductions on its Optima, MoniPower and Classic products, along with its review of the get-in fee structure including the provision of free valuations.
“The current environment is unprecedented in terms of the low rates and fees, and the Ultra Combo loan (part fixed, part variable) enables borrowers to take advantage of low fixed rates and benefit from any further interest rate reductions,” says Hair.
“For brokers and their customers, this is a great opportunity to lock in immediate savings whilst retaining some flexibility.”