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.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Sep 23, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • 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