Resi Mortgage Corporation has thrown down the gauntlet in the highly competitive home loan market by launching a cut-rate fixed/variable loan offer. This launch comes at a time when many lenders are hiking up their fixed rates.
Resi's Fixed & Free loan offer is available for a limited time and is tailored to meet the trend towards fixing rates caused by consumer concern over the possibility of another rate rise before the end of the year.
"This loan offer gives borrowers the benefit of Resi's competitive standard variable rate of 6.94% while also allowing them to lock in up to 50% of their loan for periods of three or five years at the same rate of 6.94%," said Lisa Montgomery, Resi's national manager for consumer advocacy.
At 6.94%, the five-year fixed component of the loan is the joint third lowest on the market, and is 0.44% below Resi's previous five-year fixed rate.
"It means that borrowers have the potential to save a lot of money on their mortgages if general interest rates rise, but that they also retain the flexibility to pay their loans off faster if they can," Montgomery added.
Montgomery said that Resi has consistently urged borrowers looking for certainty in their interest rates to consider splitting their loans, and the Fixed & Free loan enables borrowers to do just that.
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