(6 October 2010 – Australia) Mortgage EZY has beefed up its low doc product range and cut 20 basis points off the variable rate of its Low Docs Solutions products, as tight funding conditions for the self employed shows signs of easing.Mortgage EZY has reduced its Low Docs Solutions product from 7.09 percent 6.89 percent.
The company’s chief executive officer Garry Driscoll said self-employed borrowers had been penalised by the GFC for too long.
In reality, the risk dynamic for us is no worse than a full doc loan, Mr Driscoll said.
Under the company’s multi option low doc platform borrowers can secure LVRs of up to 80 percent without BAS on purchases with very flexible cash out options at lower LVRs.
Mr Driscoll said the policy enhancements combined with the 20 basis point rate cut would help Mortgage EZY establish its dominance in the low doc market.
The distinct lack of price point competition in low docs has helped one or two bank brands become very successful, however with policies continuously being enhanced by mortgage managers, I suspect this market monopolisation will rapidly disappear before the end of 2010, Mr Driscoll said.