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ISCOVER
Staff Reporter
Yellow Brick Road has joined ING DIRECT in passing on the full rate cut to borrowers.
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The rate reduction will put the Empower home loan range’s variable rate at 5.25 per cent for the first year and as low as 5.54 per cent per annum over the life of the loan.
“We negotiated hard for this 25 basis point rate reduction because we believe our clients deserve it and we want to help them enjoy their holiday season, even if that means that we have to eat some of our margin,” Yellow Brick Road’s executive chairman Mark Bouris said.
“We hoped the major banks would do the same for their customers, but with NAB, CBA and Westpac only going 0.20 per cent, consumers aren’t feeling the confidence that our economy desperately needs right now.”
Whilst Yellow Brick Road Empower customers will receive the full 0.25 per cent rate cut, the company is determined to do right by its clients who are savers. Yellow Brick Road’s Smarter Money fund has had a net return of 7.7 per cent per annum since its inception in February 2012 and has delivered steadily higher returns over the past 10 months.
“For us, this is not just about home loans; it’s about planning for the future,” Mr Bouris said. “A major goal for us is to ensure that our customers are getting the best deal on their home loan so they can put more into their retirement savings. We haven’t had to slash the rates on our savings solutions because we’ve been preparing for these rate cuts and have invested accordingly to deliver a higher rate of return.”
