Best Rates

All,
Just put in a deposit for a property.

Now trying to finalize the mortgage. What are the best rates a first home buyer can get at 80% LVR for a loan amount of approx 480K . NAB has verbally offered 6.87.

Looking at a product that has a 100% Offset attached

Regards
 
Don't just chase rate. In 2 years time do you really think nab will still be the cheapest of the majors? No me thinks they will grab market share then reprice their book by putting their standard rates to the same levels as the other majors.

What I am trying to say basing your decision on who has today's best rate is not the best stratergy for the long term. Do you bank with nab? What's their service like? Personally I wouldn't take a mortgage with them I don't trust their service standards.
 
I've got debts with nab personally as well as a bunch of clients and long term the worst thing is they delay on getting the atm cards out & bank accounts set up. With Nabbroker I get people in Cairns processing my loan applications as they are slow to do it in Brissy (this is nab not homeside). (Well I shouldnt say the worst but after the dust settles if something falls off the rails)

I had dinner with the exec of Nabbroker last week - Homeside has no plans on changing their pricing formulas, they led for the last 18 months and they advise quite openly that they cant see any reason why this wont continue.

Even today they abolished a ton of more fees so their offerings are competitive than they were a year ago.

Past this. If you're not just chasing rate but looking at fees as well, have a look at Bankwest.

over $400k bankwest at 6.80%. nil application, val, setup, package fees currently. if you want an offset $4 pm. I believe also no early repayment penalty.

End of the day each lender has a niche its just figuring out which one suits you
Half the time the issue of rate becomes secondary as its often a case of who will or wont approve the loan due to X,Y,Z.

(not a recommendation just a comment)
 
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With all due respect spectre I disagree with the sentiment that nab will still be a price leader in a few years time. If you look at any oligoply or duopoly pricing mismatches are always shirt lived. Coles & woolies milk and beer prices are classic example. If nab don't increase rates above the others the others will be forced to move theirs down which we are already seeing happen.
 
No offense taken. True and dont disagree, all I'm saying is they're not planning on changing their pricing after people said they couldnt do it. what happens in 2 years time is god knows. That being said with elimination of exit fees if they arent good in 2 years you can pull the plug.

As an observation / comment - take it for what you will but its just how I read your post... If you wouldnt take them on personally I would hope this bias wouldnt flow through in your recommendations to clients.
 
I go by the following

There are no good banks, only good people, when the good person is gone, you remain with the bank

Dont make price such core issue in what you are chasing, for if thats the case use some backyard net only lender.

ta
rolf
 
alokahuja - the 6.89% offered by NAB is a great rate, you wont get any lower then that with NBA, it's one of their lowest rate on offer ( that i have seen from NAB so far anyway)

Make sure it's in writing, and not just verbal - i know how branch staff work; they will say ANYTHING just to get you in the door, once you've sign the property contract it's set and all over :eek:




Regards
Michael
 
Don't just chase rate. In 2 years time do you really think nab will still be the cheapest of the majors? No me thinks they will grab market share then reprice their book by putting their standard rates to the same levels as the other majors.

What I am trying to say basing your decision on who has today's best rate is not the best stratergy for the long term. Do you bank with nab? What's their service like? Personally I wouldn't take a mortgage with them I don't trust their service standards.

I am in the process of applying for a IO IP loan for a family trust with corporate trustee and take on the advice not to chase just interest rates. The question is which bank for service/efficiency and which ones will do loans for trusts.

This is for a 450,000 property and I'm considering the following offers:
Westpac professional package 90% LVR with no LMI with 0.7% discount
NAB professional package 80% LVR at Interest only plus remaining 10% at P+I (paid down in 3 years) again with no LMI.

I do have savings to pay the 20% if required as my intention is to positively gear the property within the family trust.

Any thoughts would be appreciated!
 
cw318 - I would avoid Westpac! they are one of the worst banks to deal with trust! - slow - charge extra for complex trust - will try to palm you off to their commercial department ( higher rates) ***

I suggest: Citibank, NAB, Adelaide bank, Bankwest, CBA , St george, suncorp and most of the smaller lenders..


** note if you got a simple trust structure then westpac is alright...


Regards
Michael
 
with pty ltds brokers have to find a good local bus banker to do them as the normal broker channel dont handle them.

Also cw with the westpac the no lmi goes only to 85% not 90% (against security)

I'd agree with Michael - citi, nab, bw, cba. Abl Direct wont do a pty ltd which means a mortgage manager.

for what I'd term as 'ease of process' CBA would be amongst the slickest to do it
 
thanks mick and spectre

i was reading that CBA doesn't offer a true 100% offset account and would that be a disadvantage down the track?

westpac have verbally offered 90% no LMI through an accounting firm who deals with them directly and I understand I should have that in writing, but I'm just not sure if in my situation a higher LVR with no LMI but only 0.7% discount is better than NABs.

re: other banks how does each branch have a bus banker or do I ring the website number and ask to speak someone who deals with loans for family trusts?
 
cba does offer it but its just clunky.
if its an ip then the mi is claimable anyway isnt it?

If it were me and you wanted a face to face in vic then I'd track down one of the vic brokers on the forum - maybe Jane - aka Buzz. Shes a hell of a good broker (actually shes more than just a broker). http://www.somersoft.com/forums/member.php?u=105
 
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Forget about the discounts, if you can avoid LMI at 90%, which IS possible for some professionals, then do this.
 
This is for a 450,000 property and I'm considering the following offers:
Westpac professional package 90% LVR with no LMI with 0.7% discount
NAB professional package 80% LVR at Interest only plus remaining 10% at P+I (paid down in 3 years) again with no LMI.

I do have savings to pay the 20% if required as my intention is to positively gear the property within the family trust.

Any thoughts would be appreciated!

U are considering these written loan offers, or these are baiters ?

My immediate thoughts are , wbc dont do that sort of thing for Company loans normally ,and the last one we did via NAB medfin, they promised the earth in terms of lmi waivers for a strong deal etc blah, and when push came to shove, even with LMI they wanted PI................

I suppose what Im getting at, is there is much talk, and sometimes ( often ?) not much action

ta
rolf
 
U are considering these written loan offers, or these are baiters ?

My immediate thoughts are , wbc dont do that sort of thing for Company loans normally ,and the last one we did via NAB medfin, they promised the earth in terms of lmi waivers for a strong deal etc blah, and when push came to shove, even with LMI they wanted PI................

I suppose what Im getting at, is there is much talk, and sometimes ( often ?) not much action

ta
rolf

westpac do have a deal with about 15 accountancy firms where they will waive LMI upto 90% for their clients if buying in a trust or pty ltd and meet certain other criteria
 
Agree, if they charge you $0 for LMI...it's way more beneficial then any discount they might offer...
- LMI is payable from day 1 and not refundable.
- You can always swap lenders after a few years if the rate is not right

Regards
Michael
 
westpac do have a deal with about 15 accountancy firms where they will waive LMI upto 90% for their clients if buying in a trust or pty ltd and meet certain other criteria

I did say normally :) I mean for plebs like me

The same? "boys" club deal is around for some medicos and allied, legal folks and "high net worth" individuals, also with Comm I believe.

Interesting that being a client of firm x makes you a lower risk.

ta
rolf
 
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