The move is part of YBR's 'aggressive' expansion into the financial services industry with a competitively priced range of mortgage products, plus further banking and wealth management solutions due in the market in 2013.
"This is a game changer that will take the big four head on," YBR executive chairman Mark Bouris said. "This venture is about bringing back choice, access and competition like there was in the 90's.
"Plenty of commentators, including politicians, talk about the need for competition, but there is only one way that is going to happen and that is Yellow Brick Road taking the initiative," he said.
YBR's opening move is a 1.15 per cent discount off the base rate of 6.65 per cent for the first 12 months on residential home loan products.
Following that, a discount off the base rate of up to 0.86 per cent is guaranteed for the life of the loan.
"The good news is that unlike the banks, it's not a discounted rate that's restricted to the chosen few. All successful applicants will get a discounted rate irrespective of what position they hold in the world," Mr Bouris said.
"Whilst the big four are madly competing amongst themselves over a basis point here and there, Yellow Brick Road's new discounted rate gives them plenty to think about," he said.
As part of the move, YBR will also include a special offer around its recently launched income protection offer, Smart Shield.
