Challenger Bank
- Thread starter cgw
- Start date
Hi
Challenger is a securitised funder
GREAT for what we use them for, lo doc insured and uninsured loans.
If the product is a full doc on 80 % or less Id usually recommend a mainstream bank or building society lender myself...........
ta
rolf
Challenger is a securitised funder
GREAT for what we use them for, lo doc insured and uninsured loans.
If the product is a full doc on 80 % or less Id usually recommend a mainstream bank or building society lender myself...........
ta
rolf
I have heard of them & dealt with them and also a subsiduary (interstar) which recently changed it's name to Challenger. They are as mention tied in with the packers and were (maybe still are) a part of the Howard Property trust (I think that's their name) which is where funds are raised (not sure if all).
Dealings were fine but must admit it was a deal traditional lenders wouldn't touch and client had purchased 3 investment properties off the plan. Rates are higher than traditional but to be expected if it doesn't meet normal lending guidlines.
In regards to the subsiduary, they are a wholesale lender who provides funds at a certain rate (delivery rate)to Mortgage Managers who then pass on funds to clients under their own "branded" products. The Mortgage Manager will usually load the delivery rate with what they want as an upfront commission plus any trail (minimum 0.05% so as aftercare has to be controlled by the mortgage manager but usually a minimum of 0.25%). As such rates can vary from Mortgage Manager to Mortgage Manager, most of the time a client may not even be aware that Challenger (wholesale division) are funding it as it goes via trustees. Rates may be below traditional lenders, similar to or higher depending on the Mortgage Manager. The risk with this is that the aftercare can be non existant (or as good as) with some. If you're not happy with them then be prepared for hefty exit fees within the 1st 5 years.
What is your LVR Sidor and is it residential or commercial? I ask as you may also have LMI to deal with.
Regards
Steve
Hey cgw,
As mentioned above, they are a securtitised lender. Good for lo doc or commercial lending. For full doc, you can get a better deal elsewhere.
As Sidor found out tho, they do have high payout penalties if you payout the loan or refinance within the first 5 years. This will be true for any securitised lender you go to. So something to be careful of.
When you get the loan offer, the early payout penalties (or deferred establishment fees) will most likely be listed as a percentage of your intial loan amount. So do the calculation before you sign, just so you know how much you could be up for if you do proceed.
Cheers
As mentioned above, they are a securtitised lender. Good for lo doc or commercial lending. For full doc, you can get a better deal elsewhere.
As Sidor found out tho, they do have high payout penalties if you payout the loan or refinance within the first 5 years. This will be true for any securitised lender you go to. So something to be careful of.
When you get the loan offer, the early payout penalties (or deferred establishment fees) will most likely be listed as a percentage of your intial loan amount. So do the calculation before you sign, just so you know how much you could be up for if you do proceed.
Cheers
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