Helping The Home Starters
Sun Herald
Sunday April 4, 1999
A SMALL Sydney home lender has slashed its home loan rate to 5.60 per cent for first home buyers.
Eurofinance Corporation's variable rate is based on a fully optioned loan, including redraw and split loan facilities.
Eurofinance has also dropped the application fee from $695 to $500.
"The Great Start loan is not available to borrowers who want to refinance," managing director Jim Socratous said.
"We have been inundated with calls. We're continuing to offer this product because we want to help people and, while the Australian economy is in a healthy state, the first home buyers are being left behind by other lenders."
The move comes as several lenders have abolished their application fee for so-called honeymoon loans, where the rate rises after the first year.
The cheapest honeymoon rate is AMP Banking's 5.19pc, but after a year this reverts to the standard variable rate of 6.35pc.
Mr Socratous said the Great Start loan was not a honeymoon product and was guaranteed to have no ongoing fees but would still "allow people to be in their own home sooner".
© 1999 Sun Herald