Smash down home loan debt

Online lender loans.com.au is taking the aggressive step of offering a 3.39 per cent loan in a bid to wrest lenders away from the big banks and to tap into the traditionally strong spring property season.Loans.com.au fonder Kim Cannon says the special variable rates they are offering, for a limited time, are almost 2 per cent lower than the big banks and borrowing online is easier and quicker than people think.“Online lending is currently 5 per cent of the Australian market but with rates like these loans.com.au is aiming to drive it to 25 per cent and beyond,” says Cannon.The Reserve Bank of Australia last cut the cash rate, to 1.5 per cent, in August and since then variable and fixed rate deals have continued to fall.Borrowers with a 0,000 30-year home loan on the average standard variable rate of 4.41 per cent can make significant savings by tipping more into each repayment.“The more you can set aside early on the greater the benefit you will get.”