Auswide Bank has come out with a new Rate Tracker home loan, which sets a course to help the battle of homeownership for Australians. This RBA Rate tracker keeps an eye on the cash rate at the Reserve Bank of Australia (RBA). The reason it does this is so that when the interest rates change either positive or negative, the home loan changes accordingly.
“The People want transparency in how much their loans will cost but prefer variable rates. “ Says Auswide Bank’s Managing Director Martin Barrett. “We’re committed to being competitive against the majors, but even more to providing Australians with another option; and delivering more value than the big 4 would ever be willing”
This new RBA Rate Tracker home loan sure does the trick, and with little to no hassle as well. Starting up requires a small up-front establishment cost of $300, but no monthly fees after that; and the borrow needs to have a transaction account with Auswide, that’s it.
Once you get into the nitty gritty of it all, these loans are available for new or active owner lived in homes for loans of $150,000 and up. LVR up to 80% with the options for additional payments and redraws as well. You’re started off at 3.99%p.a interest rates, which again will fluctuate as the RBA does. There is a ‘floor’ worked into it as well, and should the cash rate ever drop below 0%, then a fixed margin will be used. The guarantee is that within 2 days of a cash rate change at the RBA, that Auswide will adjust the rate. Giving borrowers that added certainty that they want, from an entity that isn’t one of the majors!
The creation of this new loan markers a change in the banking landscape of late, giving rise to the tracker loans gaining popularity in Europe as of late, as well it give stark realization to the changing times in the Australian banking climate. Even the Chairman of ASIC has made note of Auswide’s initiative in this area and the steps it makes to give Australians more choice and maneuverability.
Should you want more in-depth information on how this loan could work for you, you should contact an Auswide Bank branch near you or contact an expert mortgage broker accredited to Auswide.