Mortgage Choice has teamed up with Athena Home Loans to expand its white label home loan offerings, with a focus on rewarding existing customers.

The broker, which is part of REA Group, announced that it will launch two loans – Mortgage Choice Freedom and Mortgage Choice Flex that will incorporate two distinctive features offered by Athena in its own products.

Mortgage Choice chief executive Anthony Waldron said in a statement that existing borrowers would always receive the same rates as new customers on like-for-like loans.

And the loans will use a dynamic pricing structure that lowers the rate as the size of the loan reduces.

Waldron said research conducted by Athena and CoreData found that majority of home loan borrowers feel they are being penalised for their loyalty when their lender offers a better rate to new customers.

He said the rate reductions would depend on the loan type and customer’s loan-to-valuation ratio but did not go into details.

Athena’s own “auto reset” offer involves a rate reduction of around 5 basis points when the LVR falls below 70 per cent and then a second cut when the LVR falls below 60 per cent. Redraw amounts are not included in the calculation of the LVR.

REA acquired Mortgage Choice last year and merged it with its existing broker business Smartline. The group claims to have a network of more than 1000 brokers.

Mortgage Choice already has white label arrangements with Pepper Money, Bluestone Home Loans and Advantedge. The new loans will be in the market in the middle of next year and will be funded by Athena.