Aussie Home Loans launch Aussie Asset Power
Last November, Aussie Home Loans Chief Executive and founder, Mr. John Symonds forecast a big shakeout of the non-bank mortgage lending market. A key element for non-banks such as Aussie in attracting customers was the mortgage pricing differential between banks and non-banks.
Confirmation that the non-bank lenders are beginning to compete on a broader range of products and services comes with the launch of Aussie Asset Power, the newest product offered by Aussie.
The unique feature of the product is that it offers a low variable rate that is directly linked to bank bill rates. Mr Symonds points out that this is the only product in the residential lending market of its kind where the interest rate is guaranteed to remain below the standard variable rate with interest only repayments for the entire loan term.
The rate for Aussie Asset Power, currently 6.96%, will be set at the bank bill rate plus 1.35% and readjusted on the 15th of each month. Mr. Symonds says that borrowers should feel more secure in the knowledge that unlike other home loans, Aussie Asset Power is completely transparent in that there are no other margins built into the interest rate such as a risk margin.
Further features include:
* Interest only repayments for the 20 year term of the loan,
* Redraw facility
* Split Loan Option
* Capped to never exceed Aussie standard variable rate
* No maximum loan size
* Borrower allowed to make unlimited principal reductions
* No mortgage insurance to 80% LVR (Loan to Valuation ratio)
Aussie Asset Power is available to all borrowers, not just professionals, and may be also used for investing purposes.