18 October 2011
Yellow Brick Road Holdings Limited ("Yellow Brick Road") (ASX:YBR) has challenged the big four banks to drop their variable interest rates in an effort to give consumers a better deal on their current home loan.
Yellow Brick Road has launched their Better Basics Home Loan offer, which has a standard variable rate of 6.98 per cent. The offer comes with no redraw fee, no monthly fee and no annual fee. For a limited time, Yellow Brick Road is also waiving the application fee and discharge costs to make their Better Basics loan a nil fee offer.*
“We’ve launched our Better Basics Home Loan to give consumers not only the best deal possible, but we’ve taken out all the fees and simplified the process to deliver a zero fee home loan with ample flexibility,” says Bouris. “The big banks are pushing hard to one up each other, but the real competition lies with non-bank lenders like Yellow Brick Road. We challenge CBA, NAB, Westpac and ANZ to beat our Better Basics offer and make Australian mortgage holders the winners.”
Recently, Commonwealth Bank launched a campaign to beat the fixed rates of any of the other three major banks. However, Yellow Brick Road believes fixed rates may not the best option for consumers as they offer less flexibility than variable rates. Additionally, the Reserve Bank of Australia has made their first hint toward a potential rate cut at next month’s Monetary Policy meeting, which means variable rates could likely follow.
“At a time when consumer uncertainty is high, people need good advice and a home loan product that offers peace of mind. That’s why we’re calling on the banks to drop their rates and beat our offer,” says Bouris. “If the banks really want to compete, Yellow Brick Road is giving them the opportunity today.”
The Better Basics loan not only has a low 6.98% variable interest rate and no fees, it offers a great deal of flexibility to appeal to a wide variety of consumers. The Better Basics loan has a maximum LVR of 95% and can be used for purchasing or constructing a new home or refinancing an existing loan. The nil-fee offer also extends to both owner-occupied and investment properties. The loan allows for consumers to split the low rate with a fixed rate or a line of credit account and permits unlimited additional repayments on variable rate accounts and limited additional repayments permitted on fixed rate accounts.
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