Non-bank lender eMoney offering 5.2% three-year fixed rate: the lowest mortgage rate offerings

Non-bank lender eMoney offering 5.2% three-year fixed rate: the lowest mortgage rate offerings
Non-bank lender eMoney offering 5.2% three-year fixed rate: the lowest mortgage rate offerings

While borrowers wait to hear how much of the 25 basis points the major banks will pass on following yesterday’s cash rate cut – ANZ borrowers must wait until Friday 12 October – Property Observer has compiled a list of the lowest fixed and variable rate offerings currently in the market.

Non-bank lender eMoney is offering a three-year fixed home loan at 5.2% – the lowest advertised rate on offer.

eMoney operates as an online lender, based in Homebush, Sydney. Customers can also call to arrange their mortgages. The lender says it can offer such cheap rates by “cutting out the middleman”.

ME Bank, which offers a three-year fixed home loan at 5.39%, says fixed rates continue to be in high demand and now account for 45% by value of all new applications, up from 14% earlier in the year.

Even when the major banks do make their announcements, rate changes are unlikely to take effect immediately.

Bank of Queensland yesterday trimmed 20 basis points from its standard variable-rate home loan to 6.71% per annum, but only effective from Friday,  October 19, 2012.

The following results are based on advertised mortgage rates listed by ratecity.com.auMozo.com.au and infochoice.com.au as of October 3:

Lowest variable rate offerings:

Provider

Loan name

Rate

Comparison rate*

eMoney

Pro Pack 75

5.6%

5.94%

UBank

uHome Loan for refinancing

5.62%

5.62%

Loans.com.au

Dream Catcher

5.65%

6.01%

Lowest one-year fixed-rate offerings

Provider

Loan name

Rate

Comparison rate*

My Mortgage Freedom

Fixed Rate loan

5.34%

5.98%

QT Mutual Bank

Choice Residential One Year Fixed

5.39%

6.05%

ME Bank

Super Member Home Loan Ultimate Offset

5.39%

6.57%

Lowest three-year fixed-rate offerings

Provider

Loan name

Rate

Comparison rate*

eMoney

Pro Pack 75

5.20%

5.87%

ME Bank

Super Member Fixed Three years

5.39%

6.05%

UBank

UHomeloan for refinancing

5.48%

5.68%

Have your say on mortgages and other aspects of the property market. Complete our five-minute spring 2012 property outlook survey for your chance to win an iPhone 5.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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