More lenders slash mortgage costs

Homeloans Ltd launched a cash-back offer and service guarantee on Friday. It will pay A$600 to all new applicants for full and low doc loans in its Ultra product range. Homeloans’ general manager for third-party distribution, Tony Carn, said the offer applied to applicants for owner-occupied, investment and refinance loans.

Homeloans is also offering to waive the application fee if it cannot provide a full loan assessment and a written response within 48 hours. The undertaking applies to loans of $150,000 or more that are electronically submitted with the required supporting documentation. On Tuesday, Mortgage House announced a 10 basis point cut in rates in its Advantage range of home loans.

And, on Thursday, BankWest sent an update to brokers with the news that it would pay an additional 10 basis points of upfront commission for any loan with a loan-to-valuation ratio of less than 75 per cent. BankWest also waived the application fee for all products and reduced the minimum borrowing on its Premium Select Home Loan from $750,000 to $400,000.

Source: Banking Day