ChoiceLend

[Rickardo]

Hi All,

My broker has recommended using ChoiceLend for my next purchase, they are only available to brokers who use Choice Aggregation, a quick forum search didn't reveal too much discussion about them.

Rates seem quite competitive, does anyone have any experience with using them? How did the process go?

 

[Rolf Latham]

Hiya

They are ok, FASTLEND and PLANLEND are the other names for the other aggregation arms under the NAB owned umbrella.

Personally I prefer to use direct lenders where possible, but the Choicelend model has great serviceability, not fussy about trusts, an ok rate, but does lack an offset.


ta
rolf

 

[Ian (WA)]

G'day Rolf,

So these little offshoots, are they like Homeside, or does each arm have differing roles in life?

I see the trust & serviceability flags in your comments. Are you suggesting they are more lenient on serviceability and accommodate lending to trusts with a minimum of fuss, unlike some instos who really can make life hard in requesting full financials etc with all applications?

Cheers,

Ian.

 

[Rolf Latham]

Hi Ian

They are the old Challenger, but now funded by NAB

Still want full financials, but will do various trusts, which many a lender wont touch

ta
rolf

 

[Rickardo]

Rolf, how long have they been around under both their current and former brands?

My concern with lenders who don't have a strong recognised brand is longevity - once their agressive push for new business has ceased, those left with their loans do not get looked after in the long term (for example, those Macquarie customers who had to deal with crippling rate increases when Mac was trying to exit the resi market at the height of GFC)

Hi Ian

They are the old Challenger, but now funded by NAB

Still want full financials, but will do various trusts, which many a lender wont touch

ta
rolf

 

[Rolf Latham]

Hi Rick

Understandable

Challenger has been around for 10 years plus

The underlying funding model has changed though ( tis my belief)

previously the funding was all securitised ( same as Macq bank and old Rams now RHG).

It is now balance sheet funded by NAB, and on the surface at least a diff proposition.

But you never know, look at WBC .........

ta
rolf

 

[Token Funder]

Hi Rick

Understandable

Challenger has been around for 10 years plus

The underlying funding model has changed though ( tis my belief)

previously the funding was all securitised ( same as Macq bank and old Rams now RHG).

It is now balance sheet funded by NAB, and on the surface at least a diff proposition.

But you never know, look at WBC .........

ta
rolf

Other than they have been around a lot longer than ten years (was Interstar before Challenger purchased), Rolf is on the money as usual.

 

[Rickardo]

Rolf,

For a simple low rate loan without an offset, and a good serviceability model, do you think there are other lenders superior to ChoiceLend?

 

[kissfan]

Rolf,

what are your thoughts on First Mac as far as general lending goes?

Regards
Marty

 

[Rolf Latham]

Rick

Im assuming you are the serviceability envelope and looking for a loan > than 300 k at LVR 80 or so

Adelaide Bnk is a viable option, but I dont know that youd be unsulated any better from the funidng issues out there

Homeside Homeplus is a good option, esp at 75 % lvr or less

But in the end, there is only ONE way to ensure your rates wont go ballistic in another funding crisis, and thats the currently very unfashionable Fixed term. Its pricing is set at purchase/ settlement and wont get upset when the bond markets go funny.

Like many unfashionable things, im still getting a reasonabele take up of fixed rate business..............makes sense to me if you are that way inclined.

ta
rolf

 

[Rolf Latham]

Hi Marty

Although Accredited I dont uses them much.

they used to have some good niches, but I wont use a securtised lender where I can use a balance sheet lender.

I just have this thing about that style of funding ( predates the GFC by a long way), that if you need to use it great, but as a matter of choice, nah, not me and my clients thanks.

Thats not to say FM is good or bad, I just dont like their source of apparent funding

ta
rolf

 

[kissfan]

Thanks Rolf

Regards
Marty