Two home-loan lenders — NAB and Virgin Money — recently announced changes to their fixed-rate mortgage products in the hopes of staying competitive and keeping up with other lenders who are joining the trend.
After announcing fixed-rate cuts last month, NAB announced a further rate reduction for its Tailored Home Loan product. Principal-and-interest (P&I) loans for owner-occupiers will now bear an interest rate of 3.79%. NAB also reduced the rate of its P&I loans for investors, now down by 20 basis points to 3.89%.
The bank also slashed the rates of its interest-only (IO) offering. The fixed rate of IO loans for owner-occupiers will now start from 4.29%, while that for investors will now start from 4.09%.
Virgin Money, a subsidiary of Bank of Queensland, also repriced its fixed-rate home-loan products. The lender slashed the rate of its P&I offering for owner-occupiers by 40 basis points to 3.69%, bearing a comparison rate of 3.9%. It also reduced the rate of its P&I product for investors, which now has a fixed rate of 3.89% and a comparison rate of 4.17%.
Virgin Money also cut the rate of its IO home-loan product for investors, bringing it down by 30 basis points to 3.89%. It now has a comparison rate of 4.14%.
Recently, Virgin Money launched a home loan product packed with rewards to woo first-home buyers.
The Virgin Money Reward Me home loan product has a two-year fixed interest rate of 3.68% and offers borrowers the chance to double their Velocity Frequent Flyer Points. Qualified borrowers will also be rewarded with a $100 gift card and 10,000 Velocity Points if they purchase a Virgin Money home and/or contents insurance policy before settlement.
Non-major lenders such as customer-owned P&N Bank, non-bank Bluestone, and Heritage Bank also joined the industry-wide rate cut trend in recent weeks.
Collections: Mortgage News
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