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.