anyone unhappy with loans.com.au?

hi, I'm about to apply for a loan for an IP and probably going to go with loans.com.au ... is there anyone who isn't happy with loans.com.au?
 
Hi Daniel,

I have had a number of clients who tried both sites prior to meeting me and to be straight out there are allot of issues when it comes to post settlement requirements such as delayed settlements which can cause penalties.

Also been told that valuations have come in lower and customer service can be quiet appalling.

Is it the low rate that is attracting you to them?
 
Thanks for the reply. Well I set up two loans with iMortgage over the past 12 months which is a low rates mortgage manager but I figured I'd give loans.com
Au a go for another IP as they are offering very good rates

However I did see that valuations with loans.com can come in lower than expected (to the surprise of the mortgage applicant)
 
I think that it's important people understand that lenders don't do valuations. lenders order valuations from a panel of approved licenced valuers. To claim one lender does lower valuations than another lender is misleading. Valuers do valuations and are paid by lenders to do so. loans.com.au , who are owned by Firstmac, use the same panel of valuers other banks use, because they use the same valuation ordering service other banks use ; valuation exchange ( VALEX )

If I wrote 5 deals with one single bank this week, for 5 buyers of 5 identical dwellings the same suburb, in any city of Australia, the valuations would in all probability be done by several different valuers, because thats how VALEX works - random assignment - and I would likely get inconsistent results.

Similarly, if I wrote those 5 deals through 5 different lenders, it's equally possible that by sheer random luck, the 5 jobs could be assigned to one single valuation firm. That's also possible with the VALEX random allocation model.

That's how valuations go. It's like a game of russian roulette sometimes. It really is.

If the issue is service - that's a legitimate responsibility of a lender. If the issue is rate - that's another legitimate responsibility of a lender. So by all means, if loans.com.au or any other lender is offering poor product or service or rate, be upset or disappointed. But if the issue is valuations - it's a valuer thing, not a lender thing.
 
On a much more entertaining note
 

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@euro73 - "apparently" one large firm hired a full time staff member to accept every valuation that came through valex. So once its on the system, one person just sits there and accepts every job - regardless if they can do it or not and regardless of delays.

So once accepted, the only option is cancellation as they wont release the val for reassignment. then relodge and hope it comes through.

Makes it a PITB to get a check val from other lenders
 
@euro73 - "apparently" one large firm hired a full time staff member to accept every valuation that came through valex. So once its on the system, one person just sits there and accepts every job - regardless if they can do it or not and regardless of delays.

So once accepted, the only option is cancellation as they wont release the val for reassignment. then relodge and hope it comes through.

Makes it a PITB to get a check val from other lenders


I do @ 10 + valuations per week across all markets and have never encountered this. That may just be good luck of course, so let's assume for a moment that what you are saying is true, and that all jobs from Valex, ordered through all banks, are being "captured" by one particular firm as soon as they hit the valex distribution queue. Where I see a flaw in this particular strategy from that particular firm is that not all banks use the entire panel of valuers made available to them by valex, so while it may capture or quarantine "most" valex jobs, it cant capture or quarantine all valex jobs, because they wont see all the valex queue.

Say for example Valex offers the banks a choice of 8 valuers who accept residential valuation work in postcode 2148 (Blacktown NSW) some banks may elect to use 2 of the 8 available valuers for work in that postcode, some may choose to use 5 of the 8 available, or some may use all 8. Aside from Firstmac, who have an enormous panel valuer list (and do not allow up front vals but do allow you to nominate your preferred valuer from their panel) most lenders only utilise a very small selection of the firms Valex makes available to them when they enter into a Valex service agreement. AMP on the other hand, who use VMS, only use two firms nationally- no matter the postcode - Opteon and CBRE. Propell is used as an overflow back up.

But if what you are saying is true and they have somehow captured all jobs for themselves, it would not take long for other firms to notice no work is coming through, and it would not take long for Valex to notice either. But besides all that, it is easily avoided - order an upfront val via Valex and order another via VMS. ANZ and AMP are two lenders using that platform instead of Valex, who allow upfront vals.

And more broadly, if what you are saying is true, it only further serves to illustrate my point - banks aren't responsible for valuation inconsistencies - and even less so if all valex work is going to one firm.
 
maybe more bris issues but the macq, anz and cba bdms are talking about it up here with me - to the point one bdm emailed me a "how to get around it email" as they have to go back, amend it in their system and put it to a manual process.

Also may depend on when timewise you order it and if a val is required to begin with.
 
Interesting reading. Yes I do understand the valuations are done by external independent companies. Though, in reading internet reviews of loans.com.au, one common theme amongst unhappy customers was a lower valuation than expected when the valuation came through. This of course is beyond the control of loans.com.au
 
a lower valuation than expected when the valuation came through. This of course is beyond the control of loans.com.au

Was this generally for purchase deals or refinances? If for refinancing - it's not uncommon for the valuation to be lower than the clients estimate. With purchase vals - the vast majority come in at purchase price.

Cheers

Jamie
 
Interesting reading. Yes I do understand the valuations are done by external independent companies. Though, in reading internet reviews of loans.com.au, one common theme amongst unhappy customers was a lower valuation than expected when the valuation came through. This of course is beyond the control of loans.com.au

There is a common misconception that some banks have 'better' or 'worse' valuers than other. As has been pointed out, the majority of valuations are performed via ValEx these days which in theory means there's no bias from one lender to another.

There are a few lenders that in many situations will use their own systems internally rather than pay a valuer. The NAB branch channel and Westpac will often use internal valuers as often as they use ValEx. Sometimes the results are better or worse, so it's hard to say which is better anyway.

When dealing with ValEx, lenders do have a standing set of instructions which they expect the valuers to follow. It's not generally known what those instructions are but it could mean that for certain locations, property types or other factors, the valuations might be more or less favourable depending on the lender issuing those instructions.

Being an online lender without any face contact, loans.com.au does expose themselves to a number of risks. It is possible (but unknown) that their instructions may err on the side of caution to mitigate these risks.

The observation can also be made that people are often dissatisfied with valuation results from all lenders. When refinancing we pretty much expect the valuation result to be below the owners estimate. Usually people shrug, accept that it's a conservative view and don't worry about it. Sometimes though the result is so low that it's ridiculous.
 
Interesting reading. Yes I do understand the valuations are done by external independent companies. Though, in reading internet reviews of loans.com.au, one common theme amongst unhappy customers was a lower valuation than expected when the valuation came through. This of course is beyond the control of loans.com.au

I'd hazard a guess that the type of profile of borrower may have unrealistic expectations

The White picket fence syndrome is more common with ppor borrowers than portfolio investors in my experience

Ta
Rolf
 
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