Loans.com.au unveils new intro rate that starts with a 1
Online lender loans.com.au, which recently turned 10, today unveiled a new intro rate for purchasers and refinancers on its Smart Booster Home Loan.
The loan offers owner occupiers a discounted variable rate of 1.85% p.a. (2.21% p.a. comparison rate*) on loans of up to $1 million. This is available for two years before rolling over to 2.25%.
Both the intro rate and the ongoing rate compare favourably to similar home loans. Among providers we track, the average variable rate (OO, P&I) currently sits at 3.25% p.a.
That means the average borrower could save around $354 per month in the first two years by switching to the Smart Booster.
“This is the lowest variable rate we have ever offered, and we are very excited to help more Australians achieve their dream of owning a home, or to start saving thousands on their existing loan,” said managing director, Marie Mortimer.
Mortimer launched loans.com.au in 2011 as a direct-to-retail business for its parent company, Firstmac. It now has approximately $6 billion in loans under management.
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The loan is available for owner occupiers making principal and interest repayments and comes with a loan-to-value ratio of 70%. That means borrowers will need to have a deposit of 30% of a property’s value saved up.
It also comes with an offset account, which can help reduce the amount of interest you pay on your loan if used correctly. However, the benefits of this feature should be weighed against the cost — an extra 0.10% on your interest rate.
We’ve included a brief overview of the Smart Booster offer below. To see how it stacks up against other offers on the market, head over to our home loan comparison page, where you’ll be able to filter your search by rate and type.
Smart Booster Home Loan (2 Year Discounted Variable Rate)
- 1.85% p.a. (2.21% p.a. comparison rate*) intro rate for two years
- Offset account available for extra 0.10% p.a.
- Borrow up to $1 million
With the Smart Booster 2-year Discount Variable, owner occupiers can take advantage of interest rates as low as 1.85% p.a. (2.21% p.a. comparison rate*), which are available for two years before reverting to a variable rate of 2.25% p.a. There is a 70% LVR, meaning borrowers will need to have a deposit of at least 30% to be eligible. Loan amounts go up to $1 million, and an offset account is also available, however this will add an extra 0.10% p.a. to your interest rate.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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