Aussie Home Loans Throws Down Gauntlet To The Major Banks With New, Low Rate Home Loans

Monday May 16, 2010

Aussie Home Loans has thrown down the gauntlet to the major banks’ domination of the mortgage market, cutting its variable rates to just 6.99 per cent per annum on new home loans.

Features of the new home loans include:

• New low variable rate of just 6.99 per cent p.a.;
• No ongoing account keeping fees; and
• One simple rate for all borrowers.

Executive Chairman of Aussie Home Loans, Mr John Symond said, “With new funding lines worth billions of dollars, we are back in the market taking the fight up to the banks with low rate home loans for everyone from first home buyers to investors.

“The Global Financial Crisis has seen the big banks regain the ascendancy in the mortgage home market and we intend to take back their market share gains through a combination of lower rates than the major banks and great service”, he added.

Aussie’s Optimizer home loan is just 6.99 per cent p.a., around 0.8 per cent below the major banks’ average advertised Standard Variable Rates (average is 7.785%), regardless of the loan amount and loan to valuation ratio.

This will be especially popular among young first home buyers, who in many cases are now paying more in rent than mortgage repayments as a result of housing shortages in capital cities.

A funding partnership with Macquarie Bank has allowed Aussie to launch the market-leading home loans.

Mr Symond concluded, “We have seen the opportunity to re-ignite our Aussie product offering as there is a gap in the market for very competitive mortgage rates and services and we will be aggressively marketing them.

“We are delighted to be teaming up again with Macquarie Bank, as together we  revolutionised the home lending market in the 1990’s with securitisation, which forced the banks to drop their high rates by nearly 3 per cent.

“We plan to kick start much needed and fierce competition again in this market as we are providing consumers with a safe alternative to the major banks”, he said.

Aussie now has a loan book worth close to $40 billion and more than 140 stores, with customers being serviced 24 hours a day, seven days a week by Aussie’s expanding mobile lending force of more than 750 accredited mortgage brokers.

All of Aussie’s products and services are accessible via its national contact centre (on 13 13 33) or by visiting www.aussie.com.au

For further information please call:

Brooke Stoddart
Aussie
(02) 8297 0381

Tim Allerton
City PR
(02) 8916 4848 or 0412 715 707

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