A little more shopping around might be worthwhile right now, if you are in the market for a new home loan.

You might do better than you originally expected with an unconventional lender, like the AMP, or a small State-based bank.

The AMP’s chief executive, Craig Dunn is sounding very upbeat about his organisation’s prospects, right now.

Indeed, he has just announced that his organisation is slashing 10 basis points from its basic variable home loan rate.

Not a lot, perhaps, but a worthwhile saving, nevertheless, especially in the early years of a new loan.

That, of course, is when repayments are usually at their most painful levels.

Mr Dunn has also written to the Federal Treasurer, Wayne Swan, saying:”We are also hopeful that we will be able to further reduce our interest rates in the coming  months.”

He said this could happen  “as we gear up our operations in the light of ongoing improvements in the securitisation market.”

That’s where organisations, like the AMP, get much of the money that they subsequently lend to homebuyers, like you.

The Federal government is helping, too.

It has just ordered the Australian Office of Financial Management to invest up to $16 billion in Australian residential mortgage backed securities.

Mr Swan says it has done this to bolster competition among the nation’s home lenders.

The government, of course, has its own motives, too.

This move will help to keep activity levels high, in Australia’s home building industry, as temporary measures, associated with its stimulus packages are gradually withdrawn, over the year ahead.