Borrowing options for property investors and home buyers are heating up with lenders now rallying for borrowers’ business online.
Wholesale lender FirstMac yesterday launched its aggressively priced online mortgage provider loans.com.au which managing director Kim Cannon claims offers the cheapest online mortgage on the market.
“loans.com.au’s new variable rate of 6.69 per cent per annum will have a special 0.11 per cent discount for new loans during the month of June, making it 6.58 per cent per annum, the lowest online mortgage rate – and the 0.11 per cent discount applies for the life of the loan,” he said.
“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.
loans.com.au’s mortgage products will track the official cash rate for the first five years, Mr Cannon said, with the rate of interest moving only if and when the Reserve Bank does.
Just last month the National Australia Bank's internet-based subsidiary Ubank announced that it would offer a standard variable rate mortgage of 6.59 per cent.
loans.com.au’s Mr Cannon said Australians were becoming increasingly comfortable sourcing financing 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.”