13 September 2011
Yellow Brick Road Holdings Limited ("Yellow Brick Road") (ASX:YBR) is imploring consumers to shop outside of the major banks for home loans off the back of Commonwealth Bank’s announcement to beat any other major bank’s advertised rate. Yellow Brick Road, Australia’s fastest growing independent financial services company, has noted that their rates are still lower than CBA’s current Home Loan Guarantee promotion.
Yellow Brick Road currently offers a standard variable rate of 7.34% and a basic variable rate of 6.98%. According to leading rate comparison website Canstar Cannex, CBA’s rates currently sit at 7.81% for standard variable and 7.11% for basic variable. Yellow Brick Road also beats CBA’s one year fixed rate loan at 6.69% versus CBA’s 6.74%.
“Commonwealth Bank has guaranteed that they’ll beat any rate offered by ANZ, NAB and Westpac, but their real competition lies with Yellow Brick Road and other non-bank lenders,” says Executive Chairman Mark Bouris. “Even with CBA’s rate drop from last week, Yellow Brick Road still offers a better rate for consumers. Australians need to know that there are options outside the big banks and with competition continuing to heat up, there’s no better time to look for a better deal. ”
Yellow Brick Road has been outspoken in the debate about fixed versus variable rates and as the banks continue to drop fixed rates in an effort to lock in customers, Yellow Brick Road believes that variables rates will come down and that consumers should wait it out before making the decision to fix their loan.
“What consumers need more than anything is good advice and information to make a well informed decision,” says Bouris. “The big banks are creating headlines with their promotional rates, but they still don’t offer the best deals out there. The volatility in the market is fertile ground for competition for both fixed and variable rates, so consumers need to know what’s out there and not be easily enticed by short-term discounts.”
Copyright © 2012 Yellow Brick Road
