First home buyers to benefit in latest home loan offer from online lender

Remy Taylor

Friday 22 March 2019

Veteran fintech, known for driving competition in the home loans industry with innovative and low-rate offers, has announced it will be offering loans with Loan-to-Value ratios (LVR) up to 90% at reduced rates, in a bid to help hoist first home buyers up onto the property ladder.  

First home buyers to benefit in latest home loan offer from online lender

It comes after saw an increase in activity from people entering the housing market for the first time, as property prices plummet.
“People buying for the first time haven’t usually been able to accumulate as much equity as those who have already enjoyed the capital gains from home ownership but we don’t think they should be penalised for that,” said Managing Director Marie Mortimer.

“To help them take advantage of this long-awaited opportunity to enter the market, we have reduced our interest rate on LVR 90 Offset home loans to the same as LVR 80 and offered our streamlined Essentials home loan at LVR 90 for the first time.”

What’s the offer?

Essentials Variable
  • Low 3.64% p.a. (comparison rate 3.66% p.a.)
  • Now available up to 90% LVR
  • No ongoing fees
Offset Variable
  • Rate cut from 4.04% p.a. to a low 3.72% p.a. (3.74% p.a. comparison rate).
  • Now available up to 90% LVR
  • Offset account to help you save on interest

This means Aussie first home buyers will not only need a smaller deposit but can score a lower interest rate, all whilst getting into the market quicker.

How does it compare? Essentials 90% LVR vs Average 90% LVR home loan rate

EssentialsAverage rate
Interest rate3.64% p.a.4.46% p.a.
Interest over 30 years$257,930$326,208

The Essentials OO PI offer at 3.64% p.a. (comp rate 3.66%) first home buyers with a $400,000 variable rate home loan with an LVR of 90% will pay $257,930 in interest over 30 years, whereas the average interest for Owner Occupier, Principal & Interest paid would be $326,208. That's a $68,278 difference! 

If you’re a first home buyer looking to break into the property market then this might be your chance. Check out home loan offers or head over to home loans comparison page for an overview of your options.

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