Firstfolio mortgage links to RBA cash rate
Firstfolio has launched a variable rate home loan under its New-Loan brand that will track the Reserve Bank of Australia (RBA) cash rate for the first three years after settlement.
The cash-rate linked loan will start at 7.25 per cent, around 50 basis points lower than standard variable rates at the four majors, and will move in line with the RBA cash rate for the first three years. It has no entry or exit fees other than external valuation and legal fees, according to Firstfolio.
Firstfolio executive director Mark Flack said that there is uncertainty among customers about future rate rises and their relationship to home loan rates.
“We decided it was possible to offer a transparent home loan product that was linked to the RBA cash rate,” he said.
“Our aim is to ultimately bring a product to market that is linked to the RBA cash rate for the life of the loan. We are actively exploring new options to achieve this outcome.”
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