News

Aussie challenges home owners and buyers
to seek a better home loan with cash incentive



30 April 2008

Australia’s leading mortgage broker, Aussie, is challenging home owners and buyers to fight back against the latest interest rate rises and seek a better deal – with the unique incentive of $300 cash if the company can not find them a better deal.

Chairman of Aussie, Mr John Symond said, "Borrowers should not just cop the recent rate rises, but do something about them by seeking a better deal and consolidating their debt into lower interest rate products".

“We are providing this program as an incentive to home loan borrowers to do a health check on their home loan and find a better deal for themselves to counteract the effects of the recent interest rate rises".

“I am so confident that our 500 accredited Mortgage Advisers can find buyers and owners a new, cheaper loan to replace their existing mortgage, I am putting my money where my mouth is! Aussie is offering this unique cash incentive for those who have invested the time and cost to explore better mortgage options".

“We will compare the customer’s loan with hundreds of others provided by our panel of 17 lenders, including the major banks, and if we can not find them a better deal, we will pay them $300 as compensation for taking the time out to meet with us”, he added.

Mr Symond said he anticipated some might portray the cash bonus as a move to increase lending volumes but Aussie, but retorted “it is more a small incentive to get borrowers to not just accept they have to pay higher mortgage repayments, but spur them on to improve their financial position”.

He added, “Our research shows that more than 50 per cent of customers who speak to an Aussie mortgage adviser do not have the best home loan deal. Now is a great time to take advantage of the red hot competition amongst lenders and drive a better deal”.

Aussie’s research also shows that home owners who refinance through the mortgage broker generally save up to 0.75 per cent on the standard variable rate, which could amount to tens of thousands of dollars over the life of the mortgage.

In a month long campaign during May, 2008, Aussie will provide the cash for any existing or new home loan borrower who makes an appointment and meets with an Aussie Mortgage Adviser and can not find a better home loan deal*.

Aussie is rapidly building its presence across Australia, recently opening its 25th Aussie Shop and launching a recruitment program for mortgage advisers.

Despite the current market volatility, Aussie continues to experience strong lending volumes, with an average of about $1 billion a month worth of home loans processed over the last six months by the group’s 500 mortgage advisers.

Aussie’s mortgage advisers, all of whom are accredited with the leading industry body, the Mortgage Finance Association of Australia (MFAA), use the company’s proprietary Mortgage Explorer software tool that selects the best home loan to suit the individual needs of customers.

Aussie Home Loans has provided loans to more than 220,000 customers with a loan portfolio worth more than $20 billion. The Aussie Shops are now a very popular destination for customers, while the mortgage advisers continue to visit customers at their home or office, 24 hours a day, seven days a week.

For further information, please call:

Tim Allerton
City Public Relations
(02) 9267 4511

John Symond
Aussie Home Loans
(02) 8297 0702


*How does the cash promotion work?
Customers will attend an appointment. Our Aussie Mortgage Brokers will compare their current home loan deal with hundreds of loans available through Aussie panel of lender. If a better deal can’t be found we’ll give them $300.

How long does it run?
1st May to 31st May 2008.

How is a better deal calculated?
As each loan has different features, fees, charges, and interest rates, we need a method to compare loans on a like basis to make a comparison fair. For this we use an AAPR calculation. A lower AAPR rate = a better home loan deal.

What is an AAPR calculation?
The Average Annual Percentage Rate (AAPR) is also known as the “True Rate” and can be used as a tool in determining the cost of ongoing fees associated with taking up a loan. The AAPR is the average interest rate payable over a 7 year period for a given loan amount including all upfront fees, ongoing fees, interest rate [and a revert to rate for the case of fixed term, introductory and honeymoon loans] and the interest payable on that loan amount over that period.

Who’s eligible?
18 years and over
Loans need to be greater than $150,000
Loans need to be readily available to the general public by an Australian home loan provider

Existing Home Loan Owners?
Variable home loans only are eligible
Split and Fixed loans are not eligible

New Home Loans?
Variable, Fixed and Split home loans are eligible

Who’s not?
Aussie Employees or family member of someone that works for Aussie
Existing AHL Customers
Existing panel lenders customers seen prior 1st May that have a pre-approval for AHL or AMM

What do customers need to bring to an appointment?
Information that will enable the Advisor to calculate the AAPR:
Interest rates and associated terms over the next 7 years
Loan Amount
Application Fee
Ongoing Fees
Discharge Fee
Settlement Fee
Existing home loaners (Variable only): Originals and photocopies of loan documentation- signed contract, current fee schedules and terms and conditions
New home loan enquiries: Original and a photocopy of a loan pre-approval from a lender on letterhead. Offer must be dated between 20th April 08 and 31st May 2008.