Advantage Finance 6.34%. Any thoughts?

[ralph wiggum]

Hey guys
Was seriously looking at Advantage Finance's 6.34% loan for an upcoming IP purchase - No monthly fees, unlimited free redraws, free switch to fixed, portable, unlimited extra payments etc
Infochoice states there is no application fee either, but I have read elsewhere it is $650 (am chasing that up at the moment).
After reading a previous post on the disasters with Homepath, I was interested to see if anyone has used this Advantage Finance loan, and what they thought of the service, speed of application, and professionalism.
Any feedback would be appreciated.

 

[Rolf Latham]

Hiya Ralph

Dont know them, Id guess they are like all the "me too" mortgage managers / originators using securitised funds from major super companies etc. So anything I say below is a generic rather than speficic comment.

The things I would be looking for with ANY loan product, not just this one.

1. Is the loan mortgage insured even at 75 % LVR

2. Is there a Deferred establishment/penalty fee if you quit the loan early.

3. Does the product (or any of their others) have a a discrete offset acct.

4. Will they take cash as security


If my assumption is correct (may very well not be) then If you are only going to buy ONE property in your life and stay in that till you move to another life then its probably a great loan solution, as it may be in other circumstancces.

As part of structured finance approach for someone that wants to buy more IPS or is buying an PPOR that will become an IP, id remember the following.

In any product or service you have 3 things

1. Price
2. Quality (in this case product features, future implications)
3. Service

Any product or service can have a high level of 2 of these, but is usually likely to have a trade off in the 3rd, .

Ta

rolf


PS

AS a general suggestion, spend lots of time on investigation where lenders rubbish the broker network - siginicant price difference has ALWAYS been the niche of the weak...................(weak in terms of service or product or price).

 

[Rolf Schaefer]

Just did a search on the MIAA website and can't see them listed as a member.

However, on their website they use the MIAA as a compelling sales argument. They are also not a member of the FBAA.

Makes me think.

http://www.advantagefinance.com.au/

 

[ralph wiggum]

Ok, thanks for the tips guys. I will probe a little deeper and see what I find.
A few alarm bells ringing though.