Wizard Home Loans and the Rate Breaker Loan

Non-bank lenders have an essential role in keeping our home loan market competitive. Competition from companies such Wizard Home Loans forces down home loan rates by efficiently competing with the major financial institutions.

Wizard Home Loans launched in the mortgage market in 1996 and in just over ten years is now one of Australia's leading non-bank lenders with a network of more than 250 branches.

Wizard has won many industry awards including the Mortgage Industry Association of Australia's (MFAA) Mortgage Manager of the Year (2004, 2005, 2006 and 2007), Money Magazine's Cheapest Home Loan (for the last six years), and has been voted best non-bank lender by Australian Banking and Finance Magazine three times.

One of the perceived flaws of non-bank lenders is their vulnerability to changes in the global credit market. Wizard is unique because it has financial backing from GE Money, with assets of US$130 billion and over 115 million customers worldwide.

Wizard Home Loans offers a Rate Breaker Loan of 6.96% p.a. variable with a comparison rate of 7.00% p.a. (at the time of writing). This loan is specifically targeted at people who own and occupy their own property. It is not intended for people building a new home, seeking a business loan, line of credit or wishing to refinance an existing loan.

Wizard Home Loans Rate Breaker Loan allows you to borrow up to 80% for loans up to $400,000, with a term of 30 years. This home loan gives you the option of upgrading into a Smart Choice Loan or Clear Value home loan. However, interest-only payments are not available and paying out the loan within the first four years incurs a deferred administration fee.

Most other options are only available by upgrading your loan for a fee of $1,000. Wizard has however, introduced a range of Discount Premium Home Loans that offer VIP advantages to new clients.

If you are looking for finance to buy a home to live in or to invest in property, you may be eligible to receive a 0.3 to 0.45% p.a. discount on your interest rate with an application fee of $350 and an annual fee of $295 on loan settlement and on each anniversary date of loan settlement.

With such a competitive price, but limited features, this loan is not for everyone. Rate Breaker is ideal for borrowers who want to get into their own home making the minimum repayments so they can put any extra funds where they are needed most.

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Published on December 12-th, 2007 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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