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ISCOVER
Staff Reporter
Australia’s non-banks, second tiers and majors continue to battle for market share, with more lenders slashing their fixed rate home loan products.
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The latest lender to join the cutting frenzy is Mortgage House, which yesterday cut almost 1 per cent off its full doc and low doc home loan products within the Advantage range.
Effective from today, the lender will now offer fixed rates starting from 6.4 per cent p.a. for a 2 year term.
The Mortgage House Advantage range of fixed loans also feature a free rate lock for up to 60 days from issuance of contracts, providing further peace of mind that in the event of the fixed rate increasing before the loan settles the borrower has locked in the lower interest rate. However, if the fixed rates reduce within this period, the customer receives the lower rate.
Furthermore the Advantage range includes a 100 per cent offset account, allows redraws during the fixed term period and accepts additional repayments (without incurring additional fees) of up to $20,000 per annum.
Mortgage House managing director Sarah Roberts said the rate cut would give borrowers an additional $183 to play with each month.
“Fixed home loans are evolving and now offer a greater level of flexibility than in the past. Whilst still having peace of mind that their repayment won’t change during the fixed term, our customers have the option of making additional repayments during the fixed term without incurring additional fees,” Ms Roberts said.
“The most recent innovation with regards to fixed loans is the ability to ‘toggle’ between offset accounts. Where our customer has decided to split their loan – part fixed, part variable – an offset account is created for each component allowing them to be in control and switch (‘toggle’ ) between offset accounts to ensure they are always offsetting the account with the higher interest rate.”
