This reduction takes the Rate Smasher Home Loan to 3.82% p.a comparison rate, the lowest variable rate Yellow Brick Road has ever offered. It’s believed the rate is also the lowest available from any branch based financial institution in Australia.

This cut will also deliver consumers a variable rate of 4.0% p.a. comparison rate on the Empower Home Loan.

Yellow Brick Road Group Executive Chairman Mark Bouris said rates have been low for some time and many thought it was impossible to go any lower – yet it’s happened again.

“My generation would never have believed rates could go this low. If customers have been ignoring the messages around slashing their interest rate and the savings potential over the last few years, they need to listen up now,” Mr Bouris said.

“The banks have not been doing the right thing by the customer for some time and the discrepancy between their rates and smaller lenders like ours has never been more clear. The big banks have been banging on in recent months about the cost of funding and the need to keep rates higher, yet smaller players like Yellow Brick Road whom operate under the same pressures have a rate that’s now well below 4% p.a. I think it’s time for customers to finally act with their feet and demand a better deal or say goodbye to their bank.”

The changes to Yellow Brick Road interest rates are effective immediately for new loans and changing on 25 May for existing loans.

“We have consistently delivered market leading rates to consumers and believes that in today’s historically low interest rate environment, consumers are doing themselves a disservice by not going out and getting the best possible deal on their home loan,” Mr Bouris said.