Non-bank slashes P&I rates by 30 basis points

by Miklos Bolza28 Jun 2017
Mortgage provider Homeloans has announced reduced principal and interest rates for its tiered home loan system, the latest in a series of similar moves within the finance industry.

Consumers borrowing more than $200,000 in a Homeloans Ultra Plus loan will have their rates cut by 30 basis point compared with those seeking a $199,000 mortgage.

Homeloans has also removed the tiers for the higher loan amounts, general manager third party distribution Daniel Carde told Australian Broker.

“As a result of this, loans of between $200,000 and $499,999 have reduced by 12 basis points to 3.77% p.a. (comparison rate 3.93% p.a.), while loans over $500,000 have reduced by seven basis points to the same rate,” he said.

“Recent changes across the industry have been in line with guidance issued by the regulator, with the focus being more on loan type than loan amount, and in particular on investor and interest only loans. Many of our pricing and policy decisions are made to ensure we maintain an appropriate mix of loan types within our portfolio.”

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