Fox Symes

[papercut]

Hi guys,

I'm looking to take out a new loan for a property.

I've come across http://www.foxsymeshomeloans.com.au/ and the offer looks a bit too good to be true?

Anyone dealt with them before? Cons/pros?

Things i can see is good are:

95% LVR
100% offset
6.69% (way lower than the banks)

Am i missing something? i tried googling and people talked more about insolvency and bankruptcy but not standard loans

 

[jonmardell]

that was their main business before they seem to have moved into home loans. I personally would find out the following

1 who the funder is
2 exit fees
3 mortgage insurance cost and compare that you the other lenders
4 legal fees ect

 

[Wunderbar]

Who cares who the lender is? Just make sure that 6.69% isn't a 'honeymoon' rate that will revert back to some ridiculously high rate after a few years. Do your due diligence

 

[Terryw]

Hi guys,

I'm looking to take out a new loan for a property.

I've come across http://www.foxsymeshomeloans.com.au/ and the offer looks a bit too good to be true?

Anyone dealt with them before? Cons/pros?

Things i can see is good are:

95% LVR
100% offset
6.69% (way lower than the banks)

Am i missing something? i tried googling and people talked more about insolvency and bankruptcy but not standard loans

Also clarrify is it really an offset or a redraw facility which they call an offset?

 

[Rolf Latham]

Who cares who the lender is?

It can matter if and when the finance world goes curly again.

ta

rolf

 

[Ausprop]

It can matter if and when the finance world goes curly again.

ta

rolf

exactly, the lender can charge you whatever interest rate they like once you take out a mortgage, so if they decide they want to whack it up 4% it's too bad so sad. Less likely to happen with a big 4 bank. With the banks about to be downgraded we wil see a bit of this first hand int he near future.

 

[sanj]

exactly, the lender can charge you whatever interest rate they like once you take out a mortgage, so if they decide they want to whack it up 4% it's too bad so sad. Less likely to happen with a big 4 bank. With the banks about to be downgraded we wil see a bit of this first hand int he near future.

yup, we got belted with macquarie when **** hit the fan a few years ago and they were exiting the mortgage game

 

[Bradsdad]

Also be wary of completing any online questions they have. I've come across clients who have had a credit check done from just completing an inquiry form.


Regards
Steve

 

[papercut]

wow, thanks a lot for the advice guys... i think i might just stick it out with CBA or NAB and negotiate

 

[jonmardell]

I think it would be prudent to stay with a lender that is funded by one of the majors cause with reports around about down grading of credit ratings it would surely hit the smaller guys more!

 

[Token Funder]

I think it would be prudent to stay with a lender that is funded by one of the majors cause with reports around about down grading of credit ratings it would surely hit the smaller guys more!

Moody's credit ratings for the majors have already been downgraded to AA2 due to their reliance on wholesale funds.

In the current environment and absent unexpected credit exposures, it's the bank's with a comparatively lower dependence on the global markets that are less likely to have their ratings hit. Of course, they are all rated lower than the majors to begin with.

 

[MikeF]

Although the following article is some what dated I think you will find they are largley funded by Westpac.

http://www.bankingday.com/nl06_news_selected.php?act=2&stream=1&selkey=9547&hlc=2&hlw=

Fox Symes is an ASX listed entity and I'm sure if you google them you will find their financials which should disclose how they are funded.

 

[Ed Barton]

Hi guys,

I'm looking to take out a new loan for a property.

I've come across http://www.foxsymeshomeloans.com.au/ and the offer looks a bit too good to be true?

Am i missing something? i tried googling and people talked more about insolvency and bankruptcy but not standard loans

what a great place a bank and a default service rolled into one.

i just received a letter - " you've been pre-approved for a $50000 default"

 

[Rolf Latham]

what a great place a bank and a default service rolled into one.

i just received a letter - " you've been pre-approved for a $50000 default"

if only you knew.........

The majority of non conforming funds used to come from lenders that do mianly clean stuff. Obviously at a nice margin, and lower risk LVR. Nothing wrong with that really, just commercial reality

ta

rolf

 

[epic_scooby_doo]

exactly, the lender can charge you whatever interest rate they like once you take out a mortgage, so if they decide they want to whack it up 4% it's too bad so sad. Less likely to happen with a big 4 bank. With the banks about to be downgraded we wil see a bit of this first hand int he near future.

Less likely to happen with a big 4? You must be joking, look at the last few rate rises and compare what the RBA rise was compared to the big 4. Seams they don't move in line with the reserve at all.

 

[delfredo]

exactly, the lender can charge you whatever interest rate they like once you take out a mortgage, so if they decide they want to whack it up 4% it's too bad so sad. Less likely to happen with a big 4 bank. With the banks about to be downgraded we wil see a bit of this first hand int he near future.

Agree. What most people fail to understand is that RBA adjusts its cash rate to influence the lenders to adjust their lending rate accordingly, such that a certain level is achieved as desired by the RBA. The desired level by RBA is most likely but not necessarily a fixed spread above the cash rate. If the lenders increase their lending rate by a bigger margin than the increase in RBA's rate, then the RBA will assess if the additional increase is still within its desired level. During the last round of interest rate hike, most lenders increased their rates by an additional 10 to 20 basis points over RBA's hike. At the following RBA meeting, it was discussed that a further hike in cash rate that was planned is no longer required due to the additional increase in lending rates by the lenders.

Wholesale funding cost pressure is real and is seen across all lenders, banks and non-banks. The Big 4 get a lot of publicity, especially when their rate hike is not in line with RBA's. However you will see that many established non-bank lenders are worse off today and are unable to compete with the Big 4. Let's take Aussie home loan as an example, its best offer is 6.99% variable rate, far off from the 6.7%-6.9% that the Big 4 are offering now.