Mortgage House Slash Fixed Interest Rates by Up To .9%

Date: 24/08/2011

Mortgage House, major non bank lender, has slashed its fixed interest rates by up to .9% on all full doc and low doc home loan products within the Advantage range.

Effective today, for all new business, Advantage fixed rates start from 6.4% p.a. for a 2 year term (comparison rate 6.74% p.a.). This move sees Mortgage House offering fixed home loans at lower rates than its standard variable home loans for the first time in many years.

The Mortgage House Advantage range of fixed loans features a free Rate Lock for up to 60 days from issuance of contracts, providing further peace of mind that in the event of the fixed rate increasing before the loan settles they have locked in the lower interest rate. However, if the fixed rates reduce within this period, the customer receives the lower rate.

Furthermore the Advantage range includes a 100% offset account, allows redraws during the fixed term period and accepts additional repayments (without incurring additional fees) of up to $20,000 per annum.

Of the drop in fixed interest rates, Mortgage House of Australia Managing Director, Sarah Roberts had the following comment:

"This is welcome news to our customers, as a saving of 0.9% on their mortgage interest rate equates to, approximately, an additional $183 in our customers' pockets every month of the fixed term*."

"Fixed home loans are evolving and now offer a greater level of flexibility than in the past. Whilst still having peace of mind that their repayment won't change during the fixed term, our customers have the option of making additional repayments during the fixed term without incurring additional fees.

"The most recent innovation with regards to fixed loans is the ability to 'toggle' between offset accounts. Where our customer has decided to split their loan - part fixed, part variable - an offset account is created for each component allowing them to be in control and switch ('toggle' ) between offset accounts to ensure they are always offsetting the account with the higher interest rate.

The Advantage range of home loans currently offers free application and free valuation up to the value of $300 per security.

With over 25 years in operation, Mortgage House is a home loan lender in its own right and has also retained its mortgage management and broking capabilities. The group has over 50 branches nationwide and also offers its range of products through a network of accredited brokers. More information is available at mortgagehouse.com.au.

* Based on an average loan size of $300,000 over a fixed term of 3 years.