Aussie Home Loans is adopting the strategy of reducing rates more often at a smaller amount, yesterday announcing a 40 point cut, following on from a 50 point cut preceding the November Reserve Bank announcement of a three quarter of a per cent reduction."It's becoming increasingly risky to become too aggressive in leading the pack," said Stephen Porges, Aussie chief executive officer."My gut feel is that we probably still have a number of cuts to come, but when somebody gets that wrong, that's dangerous."We will analyse each one as they get closer (potential rate cut), and take a leadership position and try and really put some pressure on to the banks. I think we are a leader."Porges is the chairman of the Aussie pricing committee. He said founder John Symond has input and views, along with six to eight other members."The beauty of this business as a sales organisation is that we don't have that heavy backend cost that the banks do, we can afford to work on a smaller margin, to keep pricing as aggressive as we can."We are constantly analysing the cost of our funding, no different to a bank. Our funding costs are going to be more correlated to the bank funding costs."Asked if the Australian mortgage industry has turned the corner, Porges said it potentially had."Sales were pretty quiet in August, but have definitely picked up since then. The lower end of the market such as the first-home buyers are coming in, but I think the top end of the market is still fairly quiet."The rate cut reduces the first-home buyer basic variable to 6.99 per cent, and the Aussie home loan variable to 7.65 per cent. The change will take effect from Monday, for new and existing borrowers.