Banks vs. non-bank lenders--Anybody here used these 4.49%-4.62% non-bank lenders?

[Serenas]

Excuse me everybody,

I have come across this website saying some lenders are giving as low as 4.49% variable rates and the UBank 4.62%, which sounds quite attractive to me. The Link below:

http://compare.smh.com.au/home-loans?utm_source=CS_front&utm_medium=CnS&utm_campaign=HL_loans451

Wondering if anybody here has really used these non-bank lenders and found them indeed good for investment properties? well, so far since my husband is very conservative investor we basically only feel safe to stay with tangible banks that we feel like we can go somewhere to talk to people, in case of such a need.

 

[Aaron_C]

For a simple no frills loan go for it. No broker or bank can match them.

 

[Jamie M]

Generally not good for those with a couple of properties or more.

They have their place - but that place is not generally with property investors.

If rate is the single most important thing to you then give them a go.

Cheers

Jamie

 

[Shahin_Afarin]

They are like mcdonalds - seems like a great idea but then you regret it afterwards.

 

[pinkboy]

They are like mcdonalds - seems like a great idea but then you regret it afterwards.

Speak for yourself.......................


pinkboy

 

[Aaron Sice]

If you dont mind having your mortgage bundled with others, repackaged and sold as an 'obligation' then yeah....go for it.

 

[WilliamB]

Pinkboy, I'm with you buddy, I have no issues with a half decent coffee and slice of toast for $4.95.

I go across the walk, and spend 9.20 for the same garbage from a hoity toity cafe

 

[SYD]

I haven't had good experience with NBLs.

Rates were very competitive when taking out the loan. However over time my experience was rate on existing loans became less competitive as their funding got rolled over - effectively new loans got the best funding rates and there seemed little incentive to offer consistantly low rates to existing loan holders. There seemed to be no room for negotiation.

At least with banks the loan interest rate is usually linked to their SVR. Negotiating on the discount under SVR is important and there is less chance of being disadvantaged on rates over time.

SYD

 

[Qlds007]

SYD I think you have hit the nail on the head.

Good borrowers summary of the situation.

 

[Peter_Tersteeg]

Non Bank lender fined for misleading adverts. These guys actually have a fairly nasty history of offering low rates then increasing them over time.

 

[Serenas]

Non Bank lender fined for misleading adverts. These guys actually have a fairly nasty history of offering low rates then increasing them over time.

I am glad I have been staying with major banks so far...and not taking Macquarie Bank this time (almost very tempted by them ...)

Basically I feel like, if I can't even find out somebody with a tangible address out there in the world in order for me to talk to, I don't feel safe to do any money matter or business with them...a bit to conservative perhaps, but well, this is always what common sense told me and I have never regretted doing things by this golden rule..

 

[Peter_Tersteeg]

I generally agree with your sentiments regarding Macquarie, although I admit that I am starting to rethink this position.

Macquarie was one larger of many lenders that got into trouble during the GFC and it was the borrowers that paid for it. A major concern amongst the more experienced brokers is that if times get tough again, will they react in the same manner and is their business model sustainable?

I can't say anything for certain, but their recent actions does give me some pause for though. In the last few months they've invested heavily in the broker channel via their investment in the aggregator Connective. This suggests that they're taking a longer term view to value the broker channel and damaging that relationship (which they're still struggling to recover from) will badly damage their own investment.

They're also done a number of other things which indicate they're serious about being a lender for the long term.

I don't entirely trust them just yet, it will take a long time for them to be a preferred lender (let's see how they do behave in another downturn), they've also done a few things which are more marketing spin than real deals (such as their Qantas FF product range), but their recent actions do give me some confidence.

In the meantime, I'll really only use them for certain niches. They've got some cheap rates but often the other mainstream lenders do have better deals. We'll see how they're tracking in 12 months or so.

 

[Serenas]

I generally agree with your sentiments regarding Macquarie, although I admit that I am starting to rethink this position.

Macquarie was one larger of many lenders that got into trouble during the GFC and it was the borrowers that paid for it. A major concern amongst the more experienced brokers is that if times get tough again, will they react in the same manner and is their business model sustainable?

I can't say anything for certain, but their recent actions does give me some pause for though. In the last few months they've invested heavily in the broker channel via their investment in the aggregator Connective. This suggests that they're taking a longer term view to value the broker channel and damaging that relationship (which they're still struggling to recover from) will badly damage their own investment.

They're also done a number of other things which indicate they're serious about being a lender for the long term.

I don't entirely trust them just yet, it will take a long time for them to be a preferred lender (let's see how they do behave in another downturn), they've also done a few things which are more marketing spin than real deals (such as their Qantas FF product range), but their recent actions do give me some confidence.

In the meantime, I'll really only use them for certain niches. They've got some cheap rates but often the other mainstream lenders do have better deals. We'll see how they're tracking in 12 months or so.

Thank you PT Bear for your informative sharing. True, let's wait and see what Macquarie will be doing.