Online lender loans.com.au has turned its sights on fixed rate home loans and launched a three-year deal at 4.48 percent p.a in a move that has observers predicting it could be time to fix your mortgage interest rate.
With a comparison rate of just 4.53 percent p.a, it undercuts the big four, who each offer three-year fixed rates of 4.94 percent with annual fees from $340.
Mr Kim Cannon, Managing Director of Firstmac, the financial powerhouse behind loans.com.au Pty Ltd, said increasingly customers were looking to fix the interest rates of their home loan.
“There has been a period of intense competition among lenders driving variable interest rates down and smart customers have kept a close eye on the market,” he said.
“There is speculation among some observers that interest rates have dropped as low as they are going to go so it has renewed the focus on fixed rate loans.”
“Loans.com.au has long been seen as the one to beat for low interest rates,” Mr Cannon said. “In an environment of intense competition, loans.com.au consistently strives to deliver the lowest comparison rate on the market and it continues to be recognised for its ability to deliver value to home loan customers.”
“This is the latest salvo to beat the banks, with loans.com.au offering its lowest ever fixed term rate with no annual fees.”
The Dream Home Loan Fixed, available during February, can be combined with other loan products for a mix of fixed and variable rates, available to owner-occupiers and investors, for purchase and refinance up to 90 percent LVR.
After the fixed rate period ends, the rate reverts to the Dream Home Loan Offset Variable, which currently has an interest rate of 4.52 percent.