Firstfolio yesterday launched a home loan whose rate will track changes in the Reserve Bank of Australia's cash rate for three years from settlement. The new Cash-Rate Linked Loan will have a starting interest rate of 7.25 per cent - 250 basis points over the cash rate. Firstfolio executive director Mark Flack said the company had not done any deals with its funders -  ING, Adelaide Bank and Advantedge - on rates.Flack said: "We have no guarantees from our lenders. We think there is enough margin for us to take on the risk ourselves."He said that in the long term the plan was to find funding from sources such as superannuation funds and life insurance companies that would approach a portfolio of loans tied to the cash rate as part their income allocation."What we are doing with this launch is testing demand. Potentially, funding will come from institutions looking for a different style of return. We have had some discussions with investors."Firstfolio will lend a maximum of A$2 million up to a loan-to-valuation ratio of 80 per cent.There is no application fee, but the valuation fee is $220 and there is a $440 solicitor's fee. There is no monthly administration fee and no deferred establishment fee.