Morning Briefing: Non-major launches new ‘rate tracker’ style home loan

Auswide Bank launches new ‘rate tracker’ style home loan
Auswide Bank has introduced a new home loan that will track the RBA cash rate, claiming it is one of the first loans of its kind in Australia. 

The interest rate of the new loan, launched with a variable rate of 3.99%p.a. (comparison rate 4.01%p.a.), will shift by the same percentage as the Reserve Bank shifts its rates up or down.

The loan has a ‘floor’ - if the RBA cash rate falls to 0% or below in the future the customer will continue to pay the fixed margin.

Auswide Bank managing director Martin Barrett, said tracker mortgages are a popular loan product internationally particularly in Europe. “The availability of tracker mortgages in Australia has been a topic at the current inquiry into the major banks having been highlighted by the parliamentary standing committee.”

The loan will be available on new owner-occupied home loans of $150,000 or more for purchase or refinance with an LVR of up to 80%.

HashChing processes another $1 billion worth of loan applications in record three months 
Online mortgage marketplace, HashChing has doubled the value of its negotiated loans within three months to $2 billion after reaching its first $1 billion loan milestone within a year of operation.

“The fact that we’ve hit this next billion-dollar milestone so quickly is testament to the huge demand for our technology,” said Mandeep Sodhi, CEO of HashChing.

“Nearly four thousand customers to date have used HashChing to negotiate home loans with interest rates that are well below the banks’ standard advertised variable rates.

“Being able to access mortgage brokers directly is something that previously hasn’t been possible, and it’s saving our customers tens of thousands of dollars over the life of their home loans,” he said.

HashChing is a finalist for ‘Fintech Business of the Year’ and ‘Startup for the Year’ with the Optus Small Business Awards, and it has also been nominated as one of Business Insider’s Hottest Tech 100 innovators.