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Yellow Brick Road is slashing interest rates on its Empower owner-occupier product range and its Rate Smasher Home Loan by 25 basis points.
The changes mean the variable rate for YBR’s Rate Smasher Home Loan will start at 3.82 per cent with a 3.82 per cent comparison rate – the lowest variable comparison rate the group has ever offered – while its Empower Home Loan will start at 4.00 per cent (with a 4.00 per cent comparison rate).
Yellow Brick Road group executive chairman Mark Bouris said rates have been low for some time and many thought it was impossible to go any lower – yet it’s happened again.
“My generation would never have believed rates could go this low. If customers have been ignoring the messages around slashing their interest rate and the savings potential over the last few years, they need to listen up now,” Mr Bouris said.
“The banks have not been doing the right thing by the customer for some time and the discrepancy between their rates and smaller lenders like ours has never been clearer,” he said.
“The big banks have been banging on in recent months about the cost of funding and the need to keep rates higher, yet smaller players like Yellow Brick Road whom operate under the same pressures have a rate that’s now well below 4 per cent p.a. I think it’s time for customers to finally act with their feet and demand a better deal or say goodbye to their bank.”
The changes to Yellow Brick Road interest rates are effective immediately for new loans and changing on 25 May for existing loans.
[Related: More lenders move on rates]