Wizard in reverse on rate rise
Resi Mortgage Corp said it would not increase interest rates on its cheapest home loan, and leave the interest rate at 5.85 per cent. As a result, Wizard Home Loans reversed an earlier decision and cut the interest rate on its own “rate breaker” home to loan to 5.83 per cent from 6.08 per cent. Wizard had increased the interest rate on the rate breaker loan only three days earlier. Wizard and Resi would both be losing money on the cheap loans. HSBC said it would provide home loan borrowers with a discount of a 0.25 percentage points in the second year of a loan, and a further discount of 0.5 percentage points in the third year.