National non-bank lender provides ‘best of both worlds’ with new ‘combo loan’ offer
With more and more borrowers increasingly uncertain about whether to choose variable or fixed interest rates, non-bank mortgage provider Homeloans Ltd is offering the best of both worlds with its new split loan proposition.
The Homeloans ‘combo loan’ deal enables borrowers to save a quarter of a per cent by combining the discount earned on a split loan with the savings on lower LVR loans. Not only does this provide the flexibility and freedom of a variable interest rate and the reliability and security of a fixed interest rate, it also has an amazingly low rate which starts from just 5.99%.
Should borrowers not have the deposit to afford them a loan of below 75% LVR, they can still save 0.15% by fixing up to 50% of their loan, and thus enjoy the benefits of the split loan option at a very competitive rate.
Greg Mitchell, Homeloans’ general manager – sales, says the combo loan offer helps overcome the confusion and indecision which “currently defines the marketplace.”
“Borrowers know there are opportunities out there, but they are incredibly confused as to which is the best deal; they are undecided about whether to choose a fixed or variable loan, and they are very nervous about what is the right choice to make. It’s a real gamble,” Mitchell says.
“This is where the combo loan offer comes in. It minimises the uncertainty and gamble for those borrowers, provides flexibility and enables them to maintain control. Each part of the loan is treated separately when the contract is drawn up, but the overall loan amount is still considered the total.”
Homeloans’ combo loan offers savings of up to 0.25% on split loans, meaning the Homeloans Ultra Plus is available from just 5.99% per annum (one, two or three-year fixed) on loans of 75% LVR or less. Fix up to 50% and save 0.15%, and combine this with a further saving for loans of 75% LVR and below to save a total of 0.25%.
“By having a loan that’s partly fixed and partly variable, borrowers can have the best of both worlds. The Combo loan provides greater options, flexibility and security for the future,” Mitchell adds.