Online lender loans.com.au cuts rates for investors and home buyers

Online lender loans.com.au has cuts home loan interest rates for homebuyers to just 3.52 percent.

Its managing director Marie Mortimer said the decisive 12 basis point cut would force the banks to lower their rates or continue losing market share to loans.com.au.

“We have grown from nothing in 2011 to almost $6 billion in loans under management today by consistently offering the lowest interest rates to Australian borrowers,” Ms Mortimer said. 

For owner occupier borrowers who are purchasing or refinancing, the site has dropped the rate on its streamlined Essentials product to just 3.52 per cent, and its Offset product to 3.60 per cent.

For investors, the innovative Smart Loan Package starts at 3.89 percent.

Mortimer said the new rates would help the site in its mission to rapidly drive online lending from five to 25 per cent of the Australian lending market.

Parent company Firstmac has surged to become the 14th largest residential mortgage lender in Australia, ahead of household names including Citbank, Heritage Bank, and Newcastle Permanent.

It is also Australa’s largest non-bank lender with aspirations to become an ADI.