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Better Mortgage Management (BMM) has announced it will reduce rates for a limited time on one of its specialist products, following yesterday's rate cuts by three banks.
Until 21 August, the non-bank lender will reduce the alt-doc rates for its Flexi Ultimate loan by five basis points for loans with an LVR of between 55 per cent and 80 per cent.
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This means that Flexi Ultimate loans with an LVR of more than 55 per cent and up to 70 per cent will now start at a rate of 5.09 per cent with no risk fee.
Loans with an LVR of more than 70 per cent and up to 75 per cent will start at 5.19 per cent, while loans with an LVR of more than 75 per cent and up to 80 per cent will start at 5.39 per cent.
Murray Cowan, managing director of Better Mortgage Management, told The Adviser that the new 5.09 per cent rate – along with the already-offered 4.74 per cent rate for loans with an LVR of up to 55 per cent – are a “sweet spot” for the lender.
“The 70 per cent LVR band with a rate of 5.09 per cent coupled with no risk fee or LMI has been particularly popular, saving customers thousands of dollars in fees, and with a great rate compared to other similar products,” he said.
Mr Cowan said customers could benefit by refinancing out of an older or more costly alt-doc or specialist loan to the new products available by BMM.
“Now is an ideal time for brokers to review their existing customer base,” he said.
“If the property has gone up in value, then customers may now have lower LVRs, and could potentially save on rates and fees.”
These latest rate cuts come after St.George, Bank of Melbourne and BankSA all announced reductions for their variable and fixed-rate home loans.
[Related: Pepper drops rates by 65 basis points]
