The non-bank has cut the base rate for its long-term first mortgage products to 5.85%, a cut of 40 basis points.
In a note to the market, Avanti said it had “passed on savings to clients” amid “downward positive pressure” on rates, following the Reserve Bank’s Official Cash Rate cut in August.
The lender, which provides loans to non-prime customers, believes the rate cut will be attractive to “clients who do not fit traditional bank offerings for a variety of reasons”.
“We expect that the majority of our approvals will be in the 5.85% p.a. to 7.50% p.a. range so we remain competitive in our target market and will continue to provide common sense, flexible, logical solutions, which are well priced,” said Stephen Massey, Head of Sales & Channel – Consumer.
The saving will also be extended to their existing long-term variable mortgage clients who will also receive .40% reduction in their rate.