Why Shopping Online for a Home Loan Can Save You $2,000 a Year

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• The cheapest deals are driving a surge in online mortgages • Non-bank lenders still offer the lowest variable rates • Super Rate home loan – 6.99%, no fees, no strings

“$2,000 a year is a very material saving for an hour’s work"

Some of the cheapest deals in the home loans market are driving a surge in online transactions, and helping non-bank lenders maintain their competitive edge over the big banks, according to Sydney-based mortgage and financial services company Firstfolio.

A great example is the Super Rate home loan. It carries a 6.99% standard variable rate, with no exit or application fees, and a maximum loan-to-value ratio (LVR) of 95%. Super Rate is already saving online shoppers more than $2,000 a year compared with mortgages offered by the ‘Big Four’ banks. Visit SuperRate.com.au for details.

The significant interest shown in Super Rate since its launch in November is being driven by increasingly time-poor customers who are using the power of the Internet to hunt for the very best deals. Firstfolio forecasts that volumes in online transactions will double over the next 12-18 months, with online mortgages set to make up the majority of transactions within a decade.

Super Rate is powered by The Sherlock Group, with over 45 years’ experience in corporate financial planning, and funded by the wholesale unit of Firstfolio, an ASX-listed company with more than $21 billion under management.

“Customers are increasingly comfortable with shopping for a home loan online; and they’re seeing real benefits,” said Jonathan Sherlock at The Sherlock Group. “$2,000 a year is a very material saving for an hour’s work – the kind of money that can make a big difference somewhere else in a typical household budget.”

Non-bank lenders have competed effectively with the major banks for more than two decades by offering lower rates and saving customers thousands of dollars. Over the past 10 years prime non-bank lenders have offered standard variable interest rates that are on average 0.75% below those of banks.

With economists predicting as many as four interest rate hikes this year*, borrowers are urged to start shopping around for the best deals now before the major banks again take advantage of the opportunity to hike their standard variable rates beyond those of the Reserve Bank.

Through its online platform, Super Rate is able to cut overheads and pass on the savings to customers through lower standard variable rates than any major bank. Super Rate offers all types of borrowers a low rate over the life of the loan, no hidden fees or costs, 2-minute online pre-approval, and a dedicated home-loan consultant who will guide them through the process from application through to settlement.

Visit SuperRate.com.au for more information.
*The Australian Financial Review, 10 January 2011

Media enquiries:
Stuart Kelly
Sefiani Communications Group
T (02) 8920 0700
M 0421 108 691

About Firstfolio
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 31st December 2010, Firstfolio’s portfolio of loans under management or aggregation was more than $21 billion.

About The Sherlock Group

Established over 45 years, The Sherlock Group is recognised as a leader in the areas of life insurance, wealth creation, superannuation and retirement planning. The Sherlock Group works with clients to help identify financial goals and then plan to achieve them. They believe in building a strong professional relationship with our clients. They are licensed through Madison Financial Group (“Madison”) who only selects well established and experienced advisers. The Sherlock Group has access to over 90 associated advisers and interstate through their partner Madison. Madison currently looks after $2.5 billion of funds under advice.

Super Rate No Fees Home Loan
Super Rate No Fees is a variable rate loan with a very competitive rate. Unlike other lenders offering discounted interest rates, the Advantage Rate Loan is fully featured and includes unlimited free redraws, salary crediting and flexible repayment options.

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