“There is a lot of customer uncertainty around the movement of home loan rates and their relationship to RBA cash rate. This is a great product, and we are excited and proud to be first to market with this offer."
Sydney (PRWEB) November 22, 2010
ASX-listed Firstfolio has today launched Australia’s first and only variable home loan that will track the RBA cash rate for three years from settlement, with no entry or exit fees other than standard external valuation and legal fees.
The product, the Cash-Rate Linked Loan, is to be launched under Firstfolio’s New-Loan brand. The loan will have a starting interest rate of 7.25%; more than 50 basis points below the average standard variable rate offered by the big four, and is directly linked to movements in the RBA Cash Rate Target for three years from settlement.
The product will initially only be available online via http://www.newloan.com.au.
Firstfolio Executive Director, Mark Flack, said: “There is a lot of customer uncertainty around the movement of home loan rates and their relationship to RBA cash rate.
“We decided it was possible to offer a home loan product that was linked to the RBA cash rate and today released the New-Loan Cash Rate Linked Loan. This flexible home loan with all the major features will provide new New-Loan customers with certainty, very competitive pricing and all the features of a standard home loan.
“This is a great product, and we are excited and proud to be first to market with this offer. Our aim is to ultimately bring a product to market that is linked to the RBA cash rate for the life of the loan. We are actively exploring new options to achieve this outcome. We believe this style of product will become very popular with our customers,” Mr Flack added.
Further details available at http://www.newloan.com.au.
Firstfolio is a specialist mortgage and financial services distribution business, with a diversified distribution network through its aggregation business and Australia’s leading online mortgage platform, eChoice. Firstfolio is one of Australia’s top tier mortgage aggregator/referrer platforms, and has secure lines of funding through a range of wholesale providers including ING, Adelaide Bank and Origin.
As at June 2010, Firstfolio’s portfolio of loans under management or aggregation was more than $18 billion.