Non-bank lender drops standard variable rates

by Julia Corderoy28 Oct 2014
Non-bank lender, Australian First Mortgage has dropped the standard variable rate on two of its home loan products.

The standard variable rate on the Complete/Alliance range has been cut 10 basis points, to 4.75% (comparison rate 5.14%) on new loans up to 80% LVR. The offer also includes no application fee, no valuation fee and no legal fees, with commission paid of up to 0.25% trail from day one.

The Flexible range has been cut by 20 basis points for loans up to 70% LVR. The Flexible range also comes with credit card facilities at home loan rates and free budgeting tools.

AFM Managing Director, David White says both initiatives demonstrate AFM’s focus on bringing meaningful product improvement to the market to support its third party network.

“Brokers want innovation from the non-bank sector, and this latest move is all about keeping our products competitive and providing genuine alternative options to help our brokers and their clients,” he said.

“The rate cuts, add-on features and free budgeting tools are there to help borrowers to get into attractive purpose-built products, and to pay down their home loans sooner.”

The changes are effective from 27 October, 2014.

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