Home Loan with Macquarie or NAB?

[Dominican]

Hi guys,

I am buying my first IP and my broker is pushing Macquarie bank for a home loan (4.64% interest) however the customer reviews have not been overly favourable on line that I have found.

I went to my bank NAB and they can offer 4.6% interest.

I did some research about Macquarie & NAB and found:

- They have $398 annual fee ( similar to NAB)

- They charge a valuation fee of $110 ( NAB we dont charge )

- Redraw fee of $50 ( NAB dont charge this )

- To make changes to my loan it may have a charge of $250 ( NAB switching costs )

- Discharge fee is $400 ( NAB is $350 )

Does anyone have any experience in dealing with this bank?

Any thoughts would be appreciated I want to chose the correct home loan due to this is our first IP.

Thank you in advance

 

[Jamie M]

Hiya

If the primary motivator is the rate/cost then I wouldn't go with either and look at one of the online cheapies instead.

Both lenders are pretty good - I write a bit of both of them. Both have certain policies which fit well with certain clients. Both have generous servicing models so can be a good option for those with multiple properties nearing a serviceability wall.

I like Nab for deals involving LMI more so than Mac - their DUA is better.

Having said that - I won't hit the submit button on anything above 90% with Nab.

Cheers

Jamie

 

[Peter_Tersteeg]

The cost difference between the two is almost negligible. NAB tends to be a little cheaper in some scenarios, but I know I can talk Macquarie around a cheaper deal as well.

You've mentioned rates and fees, but what about your actual requirements? What are your longer term goals? In many cases, I wouldn't recommend either of these lenders even though they may be cheaper than others, because there may be a more appropriate time in a larger strategy to use them. If you're planning on actively building a portfolio, I'd keep both lenders in reserve until later.

Incidentally the valuation fee and redraw fees quoted are easily avoided.

 

[Redom]

Hi guys,

I am buying my first IP and my broker is pushing Macquarie bank for a home loan (4.64% interest) however the customer reviews have not been overly favourable on line that I have found.

I went to my bank NAB and they can offer 4.6% interest.

I did some research about Macquarie & NAB and found:

- They have $398 annual fee ( similar to NAB)

- They charge a valuation fee of $110 ( NAB we dont charge )

- Redraw fee of $50 ( NAB dont charge this )

- To make changes to my loan it may have a charge of $250 ( NAB switching costs )

- Discharge fee is $400 ( NAB is $350 )

Does anyone have any experience in dealing with this bank?

Any thoughts would be appreciated I want to chose the correct home loan due to this is our first IP.

Thank you in advance

Whats your loan size and LVR? If your going to either of the two, you may be able to squeeze a lower rate out of Macquarie and have a better comparison.

Cheers,
Redom

 

[Jamie M]

I usually find Nab more willing to accommodate larger pricing discounts than Mac.....

Either way - if pricing is of the biggest concern then you'll get lower elsewhere.

Cheers

Jamie

 

[Redom]

I usually find Nab more willing to accommodate larger pricing discounts than Mac.....

Either way - if pricing is of the biggest concern then you'll get lower elsewhere.

Cheers

Jamie

Me too Jamie - NAB discount pretty well in my experience.

The 4.64% seems like the carded rate - can generally get some more juice out of them for a PPOR loan, especially if its sub 80%.

Agree - hit up Ubank or loans.com.au (4.28% variable) if you only care about rate and its a 'set and forget' loan.

Cheers,
Redom

 

[Dominican]

Our strategy is build a portfolio buying and hold for long time. This year our plan is to buy 2 IP?s.

The loan size for the first IP is 360K and we will pay 20% LVR (we have 100k). The IP price is 433K.

The second IP will be end or early next year using equity (and savings if needed).

After a couple of year we want to buy a land and build our own PPOR.

Actually we have all our finance in NAB.

 

[Redom]

Our strategy is build a portfolio buying and hold for long time. This year our plan is to buy 2 IP?s.

The loan size for the first IP is 360K and we will pay 20% LVR (we have 100k). The IP price is 433K.

The second IP will be end or early next year using equity (and savings if needed).

After a couple of year we want to buy a land and build our own PPOR.

Actually we have all our finance in NAB.

So these are your first two properties? Not sure why NAB or Macquarie should even be on the table (unless your servicing is very tight).

Generally makes sense to keep those two lenders (especially Macquarie) up your sleeve.

Cheers,
Redom

 

[Dominican]

So these are your first two properties? Not sure why NAB or Macquarie should even be on the table (unless your servicing is very tight).

Generally makes sense to keep those two lenders (especially Macquarie) up your sleeve.

Cheers,
Redom

well... these are the advices from my Broker. I guess he is an expert ;-(

Do you guys have another recommendations?

I am having a meeting tonight to review these options...

 

[Colin Rice]

Our strategy is build a portfolio buying and hold for long time. This year our plan is to buy 2 IP?s.

Could be an obvious question but is your broker aware of this ^^^^^

Has your Broker asked what your short, medium and longer term goals actually are?

 

[Dominican]

Could be an obvious question but is your broker aware of this ^^^^^

Has your Broker asked what your short, medium and longer term goals actually are?

yes, I've been clear with this.

 

[Corey Batt]

Unless your serviceability is already struggling with your existing portfolio, putting your first purchase with Macquarie/NAB is a bit odd. These are higher serviceability lenders that are generally used for established mature portfolios.

 

[Colin Rice]

yes, I've been clear with this.

Ask your broker to explain the choice of lenders he has selected.

 

[Dominican]

ok, I can see my Broker is looking after his commission more than us.

Obviously we are a beginners in our learning process... Not sure witch is the best way to trust a Broker.

Anyone have a list of the best lenders for investors?

Sorry, for my questions just trying to understand as a first IP buyer. We have already a house that we really like it.

Cheers,

 

[Peter_Tersteeg]

I think it's a bit harsh to suggest the broker is trying to look after their hip pocket over yours. NAB and Macquarie pay very differently. If commission was the primary motivator, they choices you've been presented would likely be different.

Both are very competitive in terms of rates, there's not much difference here. I suspect the primary motivation is to get you a good deal with the features you're after. In many cases these two lenders meet that criteria.

What we're suggesting is that there should be more to this in a properly considered finance strategy. Sadly there's very few brokers or lenders who truly understand this. I think the broker is trying to meet your best interests, but doesn't fully understand that there's more to it than a good rate and product.

You're not going to get this sort of advice from a lender directly, the best they can do is advise within the scope of a single banks products and policy. You really just need to work with a broker that truly understands investment strategy.

 

[Colin Rice]

I think it's a bit harsh to suggest the broker is trying to look after their hip pocket over yours. NAB and Macquarie pay very differently. If commission was the primary motivator, they choices you've been presented would likely be different

I agree and most brokers are actually doing their best according to current knowledge levels.

You don't know what you don't know.

 

[Jamie M]

ok, I can see my Broker is looking after his commission more than us.

Obviously we are a beginners in our learning process... Not sure witch is the best way to trust a Broker.

Anyone have a list of the best lenders for investors?

Sorry, for my questions just trying to understand as a first IP buyer. We have already a house that we really like it.

Cheers,

There could be a good reason why they were recommended - I've used them early on for plenty of clients - and it's really not the end of the world.

On the flip side - you could start of with a crappy servicing lender and get stuck.

None of us know why your broker recommended them - and he/she may have a perfectly good reason.

The comms thing doesn't cut it - they both pay the same upfront which is industry standard. Nab pays a slightly higher trail later on - I can't remember if Mac does.

Cheers

Jamie

 

[Big Will]

ok, I can see my Broker is looking after his commission more than us.

Obviously we are a beginners in our learning process... Not sure witch is the best way to trust a Broker.

Anyone have a list of the best lenders for investors?

Sorry, for my questions just trying to understand as a first IP buyer. We have already a house that we really like it.

Cheers,

If you are looking for a different persepective or another opinion about your plans maybe get in contact directly with some of the brokers who have responded. All know what they are talking about.

 

[Redom]

Ask your broker to explain the choice of lenders he has selected.

This is the best way to gain trust in a broker (IMO).

Someone that's open and transparent in explaining their recommendations is likely to be operating with your interests as first priority.

As others have said, plenty of reasons to use them, especially if servicing is tight and for borderline deals. I like the NAB/Macquarie combo to squeeze out a deal when servicing really tight.

Nonetheless, every time I recommend NAB early I try and make this part clear and transparent - NAB from my understanding pay industry high trailing commissions. Its literally DOUBLE some other lenders in years 4 and beyond.

On a million dollar portfolio, the difference can be up to $1500+ per year in trailing comms from year 4 and beyond. If their recommending NAB, best to make sure its in your interests and not his back pocket. It irks me when NAB and Macquarie are used early for reasons that aren't quite clear.

Main NAB reason is the 90% no genuine savings policy. Most go to 85%, but NAB are a decent investor lender that does 90%.

Cheers,
Redom