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Yet another non-bank lender has revealed its plans to offer borrowers a competitive alternative to the big banks.
Provident Capital yesterday announced it would increase its standard variable rate 35 basis points – significantly cheaper than three of the big four.
The company’s head of distribution – lending Steve Sampson said the lender’s competitive rate was good news for customers.
“The 35 basis points increase across our home and investment Provident Premium products is at the lower end of the spectrum of increases. It provides a very attractive standard variable rate of 7.19 per cent for a fully featured home loan, including 100 per cent offset,” Mr Sampson said.
“It’s good news for first home buyers too, because we will continue to capitalise LMI on our 95 per cent LVR Premium home or building loan.”
According to Mr Sampson, Provident is actively trying to improve its competitive position in the residential loan market.
“ With the recent backlash against the big banks we want to provide a real alternative so borrowers can ‘vote with their feet’ and make the switch,” he said.
Capital refers to the financial resources that are available to be used for income generation.