Crown lending "Who are they"

Hiya

id guess a mortgage manager selling Advantedge loans ( formerly challenger)

Same product as 100 other mortgage managers or direct channels such as choicelend, planlend, fastlend

I could be wrong

ta
rof
 
Another mortgage manager or an existing mortgage manager under a different name (I used to do work for 1 a few years back and they had 3 different names but all run by the same guy) :)



Regards
steve
 
Thanks guys

I spoke to the director Scott Perry.

He seems to know what he is on about.

Their system is to have all income go into your loan and then you redraw what you require to live on for that week, fortnight or month into another account, something like a visa debit account, all bills are a redraw which you have to call or email (which can be done 24 hours a day) before 10.00am to have the funds into you "everyday account" that night. What I like about this is that you get to keep most of your money in your loan, therefor paying less interest and there is no charge for the redraws which are ongoing and can be set to be on the same day. He also states that there is more of a personal service. He comes out annually to see you and discuss if there is anything that he can do to help you and statements are monthly so you can see how you going. He's theory is to get you debt free by the means for property investing.

Might get him to come over and see what he can do for us.

Anybody using him or something similar, just not sure have always been with a big bank.
 
I'm more worried about the 'redraw' thing. Payments into a loan will be paying off part of the loan, and redraw will be new borrowings. Deductibility doesn't matter for a PPOR, but it'll mess you up if you ever want to buy another PPOR and use this one as an IP.

If you didn't think about this, you don't have enough knowledge to know whether he knows what he's on about.
 
Scary stuff.

By putting your income directly onto the loan and redrawing it for living expenses, you would be comtaniating the use of an investment loan and potentially loose all your tax deductions on that loan.

You're likely to be far better off by using a lender that has a fully transactional offset account. You get the same result and more flexiblity for tax planning.
 
Thanks guys

I spoke to the director Scott Perry.

He seems to know what he is on about.

Their system is to have all income go into your loan and then you redraw what you require to live on for that week, fortnight or month into another account, something like a visa debit account, all bills are a redraw which you have to call or email (which can be done 24 hours a day) before 10.00am to have the funds into you "everyday account" that night. What I like about this is that you get to keep most of your money in your loan, therefor paying less interest and there is no charge for the redraws which are ongoing and can be set to be on the same day. He also states that there is more of a personal service. He comes out annually to see you and discuss if there is anything that he can do to help you and statements are monthly so you can see how you going. He's theory is to get you debt free by the means for property investing.

Might get him to come over and see what he can do for us.

Anybody using him or something similar, just not sure have always been with a big bank.

There are a few things here that remind me of the debt reduction crowd that was around 10 years ago or so. I cut my teeth in that industry and it can have benefits for some clients.

My main comment is that tying yourself to ONE lender makes no real benefit for you though, especially where that lender looks to have a limited product mix that may not be an ideal fit.

Advantedge product can be good, service is average, they can be way fussy over some things that other lenders dont care about, and dont expect any IT improvments in the next 2 years.

Must say its a good service proposition to make a physical annual service call at no cost to the client, suggests its a cosy little customer base.

All in all, its not rocket science, but some benefit from the discpline imposed by some external accountability

ta
rolf
 
So in essence what Scott is saying is that they don't offer a fully functional off-set account but just jazzing it up a little into a great sales pitch.

As mentioned already, this can cause problems down the track (if changing from PPOR to IP) or immediately if it's for an IP now.

What rate are they offering you to make this look like such an attractive option if I may ask? I appreciate rate isn't everything but at present there doesn't sound like they have much else going for them.

Regards
Steve



Thanks guys

I spoke to the director Scott Perry.

He seems to know what he is on about.

Their system is to have all income go into your loan and then you redraw what you require to live on for that week, fortnight or month into another account, something like a visa debit account, all bills are a redraw which you have to call or email (which can be done 24 hours a day) before 10.00am to have the funds into you "everyday account" that night. What I like about this is that you get to keep most of your money in your loan, therefor paying less interest and there is no charge for the redraws which are ongoing and can be set to be on the same day. He also states that there is more of a personal service. He comes out annually to see you and discuss if there is anything that he can do to help you and statements are monthly so you can see how you going. He's theory is to get you debt free by the means for property investing.

Might get him to come over and see what he can do for us.

Anybody using him or something similar, just not sure have always been with a big bank.
 
Thanks guys

The way it will be set up is my PPOR will be one loan and another one set up for an IP. The rent (income) will go into my PPOR loan and this is where all the redraws will came from.
 
Thanks guys

The way it will be set up is my PPOR will be one loan and another one set up for an IP. The rent (income) will go into my PPOR loan and this is where all the redraws will came from.

The redraws, presumably, will be for living expenses. If you ever want to buy another PPOR and keep the existing PPOR as an IP, none of the redraws are deductible. Whereas if you had a full offset, the entire original PPOR loan amount would be deductible.

Seriously, if you don't understand this, keep reading until you do. It's a common mistake people make. And you have to ask, if you don't understand it, how do you know this guy knows what he's talking about?
 
Correct, all living expenses are free redraws. You redraw want you need, not what you want.

My current PPOR will never be a IP. We have no intention in moving and if we do move I will sell it.

That is why im looking at this loan, its a strict way of living, but it will help me pay off my PPOR a lot sooner.
 
My current PPOR will never be a IP. We have no intention in moving and if we do move I will sell it.

That is why im looking at this loan, its a strict way of living, but it will help me pay off my PPOR a lot sooner.

Never is a long time:eek::rolleyes:

What they are proposing is nothing new and is available through any of the majors. We have a similar set up with CBA and there is no need for this email c**p. I simply get on internet banking and do it all there directly.

I assume you will be paying some fee somewhere for these people to 'package' this product and feed you with a spoon.
 
Correct, all living expenses are free redraws. You redraw want you need, not what you want.

My current PPOR will never be a IP. We have no intention in moving and if we do move I will sell it.

That is why im looking at this loan, its a strict way of living, but it will help me pay off my PPOR a lot sooner.

In case you haven't read the rest of the posts: you could get the same benefit, AND have the option of switching from PPOR to IP in the future, if you just get a loan with a proper offset account. There is nothing these guys are advocating that you can't replicate with a decent savings plan, some discipline and a loan with an offset.
 
Guys, I'm not saying that this is the only and best thing out there, just wanted to know if anybody has/is using them.

To get some feedback from someone how has used this will be the best way to see if it helps in reducing debt.

I'm will be off for a few days back early next week.
Enjoy your weekend.:)
 
some discipline

This can sometimes be the hardest part, and some of these mortgage redn guys do a job of the external accountability bit. One needs to make sure though that we are using a product thats fit for the use and not let our personal needs blind our need for appropriate product

ta
rolf
 
Guys, I'm not saying that this is the only and best thing out there, just wanted to know if anybody has/is using them.

To get some feedback from someone how has used this will be the best way to see if it helps in reducing debt.

I'm will be off for a few days back early next week.
Enjoy your weekend.:)

The theory behind it all is sound as long as you manage your spending. As mentioned, other lenders also offer free redraw and most allow internet transfers which is more flexible than having to call or fax. Most lenders have a basic product that does the same thing whilst others offer fully functional offset accounts that do the same job.
You mention that you will never turn this property into an IP. If this is the case the redraw shouldn't cause many concerns apart from the clunky functionality.


Regards
Steve
 
Sorry but the theory is not sound!

Even ASIC has label mortgage reduction via line of credit or offset a sales scam...

These scams include a budget. Lets say your budget assumes you earn 5k per month and spend 2k per month. Then using a line of credit or offset account this assumes 3k per month stays in the facility (ultimately your repayment).

If the standard repayment on a loan was 2k and you pay 3k wooollaaaa! you’ve reduce 1000s off your interest bill.

SCAM!!!!

You can do the same by increasing your repayments on any loan (even without offset)

SO WHAT IS THE REAL BENEFIT OF OFFSET FOR MORTGAGE REDUCTION...

Commission for the scammer! That’s about all....

The actual benefit of using the offset or line of credit with a 55 day interest free card is no more than a lazy Saturday morning fart. If you have an average spend on your card of 3k per month - it is fair to assume the average balance is 1.5k (starting at NIL and ending at 3k). Therefore you save say 7.0% of an average offset of 1.5k e.g. $105 per year...
(not worth their $$000's fee and refinance costs).

The benefit is in the budget. Not the type of loan. Extra repayments are available on most loans - no refinance required!

These companies get your to pay for your initial 'budget' prepared by a sales rep. They then charge 5k or so (plus refinancing brokerage) to unnecessarily move you to an offset or line of credit.

Just get on the internet and find a good budget template. Complete one and give it to 5 of your friends and family members. Offer them a $1000 each to sit you down once per annum for a review and you would have save a hell of a lot of money!
 
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Up to date info?

Hi Guys,

Appreciate this is a really old thread but this is the only place I could find anything on Crown. I was wondering if anyone had some up to date information/there was anyone out there who had been with them for a while?

A friend of mine is with Crown and he's just about to get an Investment property. He said it's been hard but absolutely swears by them and it looks as though they've done wonders for his finances as he used to be in quite a bit of debt.

Initial meetings look really promising for my needs, like Jamg said, it involves all income going into the home loan and a redraw system for extra money that I might need for unexpected bills etc. I was just wanting some more advice before I take the plunge please? Any advice hugely appreciated.
 
Sniffer, if you really believe that an offset account is some type of scam, you need a lot more help than just a downloaded budget sheet from the internet!!
 
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