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Tracker mortgage makes Auswide debut

The debate over the pros and cons of a "tracker rate" home loan product in the Australian market has been overtaken to a degree.Niche lender Auswide Bank released the 'RBA Rate Tracker' home loan on Friday. Auswide said its RBA Rate Tracker home loan, Auswide would "track the movements of the Reserve Bank of Australia cash rate." If the RBA shifts interest rates up or down, the interest rate attached to the home loan also moves by the same percentage. ??Martin Barrett, Auswide Bank managing director said the "loan has a 'floor' - if the RBA cash rate falls to zero per cent or below in the future the customer will continue to pay the fixed margin."The Auswide loan debuts with a variable interest rate of 3.99 per cent.

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