Home loans under six per cent

A number of lenders are still offering standard variable rate home loans below six per cent. They include ING Direct, AMO, BMC Mortgage Corp, Gateway Credit Union, Heritage Building Society, HomeStar, ME Bank and QuickDirect.

Resi’s Complete Home Loan has gone up 75 basis points over the past three months and is 6.37 per cent. The group is doing most of its business with a product called Switch and Save, which offers a discounted intro rate (currently 5.7 per cent) for two years.

Resi Mortgage Corp’s head of consumer advocacy, Lisa Montgomery, said it was a myth that small lenders had a limited amount of finance available. Some do.

Last week Citibank’s head of mortgages, Steve Ramage, said the bank had been quiet in the mortgage market this year because of funding cost issues.

Montgomery said that constraint did not apply to all small lenders. Resi is funded by Advantedge (the new name for the mortgage management business sold by Challenger to NAB) and supply is not an issue.

Montgomery said: “We have plenty of capacity and our volumes have been growing at around 30 per cent over the past few months.”

Source: The Sheet