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Lenders announce pricing changes

One lender has unveiled new fixed rates for specialist borrowers, while a non-major bank has reduced its variable rates by up to 40 basis points.

The specialist lender’s three-year fixed rate is now 30 basis points lower than the current variable rate, while its two-year fixed rate has been cut by 20 basis points.

Bluestone CEO Campbell Smyth said fixed rate loans make up between 15 and 20 per cent of the prime mortgage market, but have traditionally been unavailable to specialist borrowers who have had to deal with a limited choice in loan structures.

The thinking in the specialist lending space has been that these types of borrowers would not benefit from fixed rates, as their goal is to refinance into a prime mortgage as soon as possible.

“The reality is that just the opposite is true. Fixed rates are more suited to specialist borrowers in some ways. A fixed rate means a fixed payment, which gives borrowers certainty and allows them to choose the period of time in which they intend to get back into a position to re-enter the prime market,” Mr Smyth said.


Meanwhile, ME announced yesterday that its Basic Home Loan – Owner Occupied with an 80 per cent or less LVR will be cut by 0.20 per cent to 4.24 per cent.

ME’s Basic Home Loan – Investment (with an LVR of 80 per cent or less) has been cut by 40 basis points to 4.24 per cent.

The bank’s Flexible with Member Package – Owner Occupied (with an LVR of 80 per cent or less) has been reduced by 6 basis points to 3.89 per cent, while the same home loan for investment purposes, also with an LVR of 80 per cent or less, has also been reduced by 6 basis points to 4.09 per cent.

ME’s Flexible with Member Package – Owner Occupied loan (with an LVR for 80 per cent to 90 per cent) has been reduced by 15 basis points to 4.09 per cent, while the same loan and LVR band for investors has been reduced to 4.29 per cent.

[Related: Loans.com.au slashes mortgage rate despite RBA decision]

Lenders announce pricing changes

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