Mortgage House, a major non bank lender, is distancing itself from other non bank lenders by avoiding the temptation to increase interest rates or introduce application fees to cover the prohibition on charging deferred establishment fees for loans discharging within 5 years.
In line with the new ban on deferred establishment fees now in place, Mortgage House appears to be one of the few lenders prepared to remove this fee without stinging customers elsewhere.
Recent reports have shown other non-bank lenders have increased their interest rates, introduced upfront fees or increased their application fee to cover the establishment costs of a loan. This largely defeats Treasurer Wayne Swan’s reform designed to ‘give Australians a fairer go’.
Mortgage House has removed the deferred establishment fee for all new settlements whilst continuing to keep offering it’s special of no application fee and no valuation fee (up to the value of $300) on it’s existing home loan product range.
Of the new changes within Mortgage House of Australia, Managing Director, Sarah Roberts had the following comment:
“We hear first hand from customers wishing to move their loan to us that the upfront costs are prohibitive even though they know they will save more in the long run. The reform removes this hurdle from the customers and provides them with greater ability to find home loan finance that suits their needs.
We make it easier for them to bring their business to us by eliminating a large portion of the initial set up costs including application fees and valuation fees. “
With over 25 years in operation, Mortgage House is a home loan lender in it’s own right and has also retained it’s 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.
