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In a bid to remain competitive in the mortgage sphere, second tier lender AMP has announced it will cut its basic mortgage rate.
According to a report in The Daily Telegraph, AMP will drop its basic mortgage rate for new homebuyers by ten percentage points to 6.24 per cent.
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While AMP's mortgage rate of 6.24 per cent is still higher than most of the majors, AMP says its loans have flexibility the big lenders can't provide, such as an offset account.
"This reduction in interest rates has only been possible because of the improvement to the securitisation markets flowing on from the Government's support," AMP's managing director Craig Dunn said last week.
"We are also hopeful that we will be further able to reduce our rates in the coming months, as we gear up our operations in light of ongoing improvements in the securitisation market."
