Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Online lender doubles demand after cutting rates

Online lender doubles demand after cutting rates

Loans.com.au has doubled its number of home loan applications since it dropped its interest rate to 4.23 per cent following the Reserve Bank’s cash rate cut.

Kim Cannon, managing director of Firstmac – parent company of loans.com.au – said the response from borrowers has been “really heartening”, with an increase of more than 100 per cent in applications in a week.

“The RBA move has really shaken up the home loan market and prompted people to take a close look at their interest rate,” he said.

Advertisement
Advertisement

Mr Cannon said home loan customers have come to realise that they can get better value by seeking out alternatives to the major banks.

“They are refinancing in record numbers for a better deal, and they see the value of using a mortgage offset to save even more interest over the life of the loan,” he said.

“The majority of borrowers are opting for the offset facility and paying off their home sooner.”

Mr Cannon said that while loans.com.au offers competitive fixed rates, a majority of borrowers are still keen to stay with a variable rate loan.

“Some sectors of the market speculate that the RBA is not quite finished with cutting the cash rate, which would mean we could see another drop before the year is out,” he said.

“With variable rates being as low as they are, many barrowers feel they have nothing to lose by watching and waiting to see if they go any lower.”

Loans.com.au is an independently-owned, Australian online lender that does not operate in the third-party channel.

Online lender doubles demand after cutting rates
mortgagebusiness

 

Latest News

The major bank has lowered its interest rate floor for mortgage serviceability assessments, becoming the third major bank to amend its polic...

A big four bank has announced the appointment of a new chief executive officer. ...

Digital neo-lender 86 400 has been granted a full authorised deposit-taking institution licence by APRA and expects to launch its mortgage ...

FROM THE WEB
podcast

LATEST PODCAST: A shift in serviceability requirements

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.