Homeloans slashes rates
Non-bank enhances position as a price leader
National non-bank lender Homeloans Ltd has cut its rates by 0.25 per cent, bringing its total rate reduction over the past two months to 60–65 basis points. The December cut comes hot on the heels of the lender’s early November cut of an unprecedented 35-40 basis points.
“These two significant rate cuts show we mean business,” says Greg Mitchell, Homeloans’ general manager sales. “We’re keen to take on the major lenders with these huge reductions in variable rates.
“Some industry members had doubted whether we would match the RBA again following last month’s move, but we’ve proved that we’re serious about tackling the Big 4 head on.”
The two rate drops in the past two months mean Homeloans’ flexible MoniPower product has reduced by 65 basis points and the Ultra and ProSmart loans by 60 points.
“We’re reinforcing our strategy of positioning Homeloans as a price leader with one of the most competitive offerings in the marketplace,” Mitchell adds.
Since Homeloans cut its rates in November it has experienced a surge in demand. “We’ve seen a 20 per cent increase in submissions since last month’s rate reductions,” Mitchell says. “And applications are across the board – from first home buyers, those upgrading to investors.”