Aussie Home Loans cuts rate and expects further moves

Friday, 4 November 2011

Aussie Home Loans today slashed its Optimiser Variable Rate by the full 25bps announced by the RBA last Tuesday, from 6.95 to 6.70 per cent and predicts that rates would fall again over the next six months. This rate remains one of the most competitive home loan rates in the market today.

The 0.25 per cent rate drop by Aussie represents a saving of about $52 a month, based on a $300,000 home loan, and Executive Chairman of Aussie, Mr John Symond said it may not be the last drop that borrowers can expect over the next six months.

He said: “Australia continues to be susceptible to economic shocks from overseas and I believe there is room to cut rates further over the next six months. Home owners and buyers have been doing it tough lately and we are heading into the crucial Christmas retail season.

“I expect the rate drop will boost sales and the rest of the economy, providing much needed confidence to consumers”, added Mr Symond.

He suggested that if they can afford it, borrowers should maintain their current level of repayments as they will potentially cut thousands of dollars and years off the life of their loans.

As one of the country’s largest non-bank providers of financial services, Aussie has a loan book of over $41 billion, with more than 700 brokers across the country.

An Aussie broker will offer guidance, assess eligibility, lodge the application and then support the first home buyer borrower through the home loan process. Aussie brokers are available seven days a week in your home or at one of our more than 140 stores at the request of customers who call Aussie on 1300 44 55 66.

Aussie’s new rate will apply to new and existing variable rate borrowers from November 14, 2011.

For further information please call:

John Symond
Aussie
(02) ) 8297 0702

Brooke Stoddart
Aussie
(02) 8297 0381

Tim Allerton
City PR
(02) 9267 4511 or (0412) 715 707