Online lender undercuts the majors

Loans.com.au has cut its three-year fixed rate to its lowest ever level, adding to speculation that the Reserve Bank will not lower the cash rate any further.

The online lender’s Dream Home Loan Fixed product now offers a rate of 4.48 per cent with no annual fees, and undercuts the 4.94 per cent three-year fixed rates offered by the big four.

Kim Cannon, managing director of Firstmac – the parent company of loans.com.au – said an increasing number of customers were looking to fix the interest rates of their home loan.

“There has been a period of intense competition among lenders driving variable interest rates down, and smart customers have kept a close eye on the market,” he said.

“There is speculation among some observers that interest rates have dropped as low as they are going to go, so it has renewed the focus on fixed rate loans.

“This is the last salvo to beat the banks, with loans.com.au offering its lowest-ever fixed term rate with no annual fees.”

The Dream Home Loan Fixed product is available during February, and can be combined with other loan products for purchase and refinance up to 90 per cent LVR.

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