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ISCOVER
Staff Reporter
Fears the online revolution could pose a threat to brokers may soon be realised, with the launch of a new aggressively priced online mortgage provider.
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Funded by FirstMac, loans.com.au comes to the market with the cheapest online variable rate.
“loans.com.au’s new variable rate of 6.69 per cent pa will have a special 0.11 per cent discount for new loans during the month of June, making it 6.58 per cent pa – the lowest online mortgage rate; and the 0.11 per cent discount applies for the life of the loan,” FirstMac managing director Kim Cannon said.
But, according to Mr Cannon, competitive rates are not the only weapon in loans.com.au’s arsenal.
“We’re a serious competitor ready to meet the major lenders head on in providing Australian borrowers with greater choice, lower rates and excellent features on their home loan,” he said.
“There has been much speculation that recent moves in the industry may be the start of a price war, and loans.com.au’s presence in the market will help ensure that consumers are not the casualties of any short-term assaults by the major lenders.”
Mr Cannon said as more people turn to the internet for their everyday life, they are becoming increasingly comfortable with sourcing their home loan online.
“While we can look at instances where other online mortgage providers have failed in the past, I think it was a case of those providers possibly being ahead of their time,” he said.
“loans.com.au benefits from the stability of FirstMac’s funding from investors, including a cornerstone investment in FirstMac’s RMBS program totalling $1.4 billion since 2008 from the Federal Government’s Office of Financial Management (AOFM).”
