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Two lenders reduce rates

Two lenders reduce rates

A major bank and a lender that recently re-entered the market have made significant cuts to their variable and fixed mortgage rates following Advantedge’s decision to drop four of its rates below 4 per cent.

NAB Broker announced that its two-year fixed rate will now start at 3.75 per cent (with a 4.84 per cent comparison rate), while its three-year rate will start at 3.89 per cent (with a 4.79 per cent comparison rate), and its one-year and four-year rates will start at 3.99 per cent (with comparison rates of 4.97 per cent and 4.75 per cent respectively).

The big four bank has also made further reductions on its Homeplus variable rate specials on new applications with a maximum LVR of 80 per cent and an aggregated loan amount of $250,000 or more.

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For owner-occupiers, the rate will be 3.99 per cent for principal-and-interest loans (with a 4.17 per cent comparison rate) and 4.09 per cent for interest-only loans (with a 4.54 per cent comparison rate).

For investors, the rate will start at 4.14 per cent for principal-and-interest loans (with a 4.31 per cent comparison rate) and 4.24 per cent for interest-only loans (with a 4.68 per cent comparison rate).

Meanwhile, Virgin Money has slashed a number of interest rates for investors and owner-occupiers on one of its home loan products.

The non-bank lender’s Reward Me Home Loan has seen its three-year fixed rates for owner-occupiers and investors drop by 20 basis points to 3.79 per cent and 3.99 per cent respectively.

Virgin’s variable rate for investors has been reduced by 15 basis points to 5.04 per cent, while variable-rate loans of $75,000 to $499,999 have also been cut by 15 basis points to 4.29 per cent with a maximum LVR of 80 per cent, and by 10 basis points to 4.54 per cent with an LVR of between 80.1 per cent and 90 per cent.

Variable investor loans of $500,000 to $749,000 have seen a 15-basis-point rate cut to 4.24 per cent with a maximum LVR of 80 per cent, and a 10-basis-point cut to 4.49 per cent with an LVR of between 80.1 per cent and 90 per cent.

Variable investor loans of $750,000 or more have seen a 15-basis-point rate cut to 4.19 per cent with a maximum LVR of 80 per cent, and a 10-basis-point cut to 4.44 per cent with an LVR of between 80.1 per cent and 90 per cent.

Virgin’s owner-occupier variable rate has been reduced by 5 basis points to 4.79 per cent, while variable-rate loans of $75,000 to $499,999 have also dropped by 5 basis points to 4.04 per cent with a maximum LVR of 80 per cent, and to 4.24 per cent with an LVR of between 80.1 per cent and 90 per cent.

Variable owner-occupier loans of $500,000 to $749,000 have seen a 5-basis-point rate cut to 3.99 per cent with a maximum LVR of 80 per cent, and to 4.19 per cent with an LVR of between 80.1 per cent and 90 per cent.

Variable owner-occupier loans of $750,000 or more have seen a 5-basis-point rate cut to 3.94 per cent with a maximum LVR of 80 per cent, and to 4.14 per cent with an LVR of between 80.1 per cent and 90 per cent.

Virgin announced its return to the mortgage market in April with the introduction of its Reward Me Home Loan.

[Related: Advantedge slashes rates by up to 60 basis points]

Two lenders reduce rates
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