Home News Higher-lend customers eligible for a rate cut

Higher-lend customers eligible for a rate cut

Font size :
105% loan customers will now be able to switch their rate to the standard variable rate if they meet all their repayments on time for the first three years of their loan. It's a move designed to reduce the number of borrowers who switch lenders when their circumstances change. "We're aiming to provide a non-conforming loan today, but convert it into a prime (conforming) product down the track," said Gino Marra, Carrington National's managing director. Remaining on the same product could prove more cost-effective than undertaking a costly refinancing transaction, in which borrowers may be snared by exorbitant break costs. If the borrower is eligible, the rate will automatically revert to the lower rate after three years. While most borrowers would not be aware that their loan originally came from Mobius, products from the wholesale lender have distinguishable features, according to Marra. "Mobius has a unique fee structure. It doesn't charge any fees to the borrower - it passes the processing costs onto the mortgage manager, who then absorbs them. Mobius also has an in-house mortgage insurer, which results in quicker loan processing," he said.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

Choosing the right mortgage is hard for many first-home buyers Choosing the right mortgage is hard for many first-home buyers

Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

More mortgage news and articles

Sponsored Links

Monday, Jul 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords