home loans what one....

B

BMan

after looking at the main 4 banks and ME bank
how the hell do i know what loan to choose?
what loans do you have and why did you choose them?

the reason i first went with ME bank was because they had the lower interest rate at that point in time (i think) but there comparison rate was the same as there rate
i understand what the comparison rate is but it can vary depending on so many situations so how can you compare with it?

is it better to get a loan with a lower interest rate or a lower comparison rate?

i have read a thread saying about getting discounts of up to 1%
how did u get it?
is that always 1% lower than there advertised rate?

also with IO loans they go for 5 years can u then renew it for another 5 years with IO repayments? and keep doing that?
 
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A comparison rate is the equivlent rate for the loan when you take into consideration all fees and charges. A really low interest rate is not much good if you've got a $1000 per month fee! The idea of a comparison rate is to enable the borrower to compare apples with apples.

The problem is, the comparison rate will be different depending on what the loan amount is, and it can also depend on what the LVR is. It's nice to compare apples with apples, but it doesn't help much if you need an orange.

The 1% discount generally refers to 1% lower than the standard variable rate for that lender. The problem here is that not all lenders the standard variable rate. They can vary significantly. NAB will say they've got the lowest standard variable rate of all the banks. The also have the smallest discounts so in effect they're not the cheapest in most cases.

If you really want to compare numerous loans, talk to a mortgage broker. The most suitable loan is about a lot more than just the interest rate.

It's not entirely straight forward, but yes, you can continue to renew IO periods indefinitely.
 
^^^ Sound words of wisdom from PT_Bear ^^^

What loans I have will probably be of little relevance to YOUR personal circumstances.... Eg. I have a personal Business Banker with NAB...will that help you? I also have a "package" facility with another top 4 bank which helps get slightly better rates for multiple lending facilities....will that help you? ..... I have no idea whether our circumstances are even remotely compatible, hence my financial arrangements may be completely wrong for you....

Find a reputable Mortgage Broker (there are many here on SS for instance) that you can work & relate with.... we are not all compatible. ;)
 
We're with homestart because they were the only bank that would give us a loan. Interest rate is 7.8%, although might have dropped after that last cut.

After spending 3 months assessing our borrowing capacity by going through 3 years of our financial records to make damn sure we could repay, our total amount of debt is now barely 40% of what they assessed it on. Our LVR is 25%. But now we're with them we're stuck with them, we can't really change banks.

This lack of stated income loans sure makes it impossible for us fringe cases.
 
ah i see your from rural sa
me 2 probably a totally different area though
yeah its weird how they work
i got a loan instantly but my gf cos working casual they wouldnt lend her n homestart was the only option and she ended up putting 7k worth of kitchen on her credit card antho she does balance transfers and kept the interest rate to lower than what the homeloan would be

cant u refinance?


yeah well we all want oranges dont we...
ok sounds like its time to get professional help
would it be best to visit a mortgage broker in person or would one through here be fine?
and whats a financial planner do? i noticed pt_bear is one
 
These days most transactions are done over the phone so face-to-face isn't always necessary. Also note that most banks do accept casual income but there are minimum requirements that need to be met (such as working there for a number of years, and consistent hours etc)

A financial planner gives you financial advice (i.e. tells you where to invest etc). Their advice is generally wider than other profesions because it covers everything from your superannuation to shares.
 
whats the cost of a financial planner ?
is a financial broker better than a financial planner to organize loans or planers dont do it?
 
BMan said:
whats the cost of a financial planner ?
is a financial broker better than a financial planner to organize loans or planers dont do it?
Click to expand...

Not sure about the exact cost but they do charge a fee for service these days. Financial planners don't organise loans but they do tell you where to invest. Brokers are the ones who organise loans (and give you loan-specific advice as well) but they are paid by commission from the bank (so no additional cost to you).
 
BMan said:
cant u refinance?
Click to expand...
Probably not. 2 months ago our income changed completely, and being self-employed you need to stay at the same-ish level for 3 years. By which time the house will be completely paid off, so no point.

One day I'll hit one of the brokers here up for some commercial finance for development. When the house is paid off anyway.
 
BMan said:
if there p,aid by comission how do you know there looking after you and not themselves
Click to expand...

It all depends on the broker. Some brokers only do it for the commission and don't care about you or your situation...others don't. But these days there is an incentive for brokers to only give banks good deals because trailing commissions only get progressively ramped up and there are clawbacks on upfront commissions too.
 
the best advice i got when i bought my first home was to speak with a mortgage broker.

i highly recommend it.

do your own research and find one that works with a lot of lenders. i first went with mortgage choice, but now i am with a private broker.

my first loan was with betterchoice loans and now i am with nab, http://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/22/2/3.

it is complicated process but a good broker will take their time and explain every detail.
 
I love spreadsheets.
I gather all the costs and interest rates from the banks.
Then I work out the interest paid pa plus annual fees.

Then I can see for myself, which will be the cheapest loan.

I like offsets.

So cheapest loan + offset + interest only gives me the bank to start with.

5 years interest only can be extended at the banks discretion jbut may need a refinance to another bank to start at a new 5 years interest only period.
Some banks do 10 years int only on investment properties.
 
Which banks/societies are pushing to lend to investors now?

Can anyone point me in the direction of banks/building societies that are pushing marketing hard for a share of the market by lending to property investors right now? Who is doing the deals now?
 
rchad said:
Can anyone point me in the direction of banks/building societies that are pushing marketing hard for a share of the market by lending to property investors right now? Who is doing the deals now?
Click to expand...

most lenders will lend to a good applicant with a good proposal.

If the numbers demand that there is something different about the deal, then chasing via an independent broker will get you across a wide range of lenders

ta

rolf
 
rchad said:
Can anyone point me in the direction of banks/building societies that are pushing marketing hard for a share of the market by lending to property investors right now? Who is doing the deals now?
Click to expand...

All of them want business and most have ramped up their marketing efforts. Whether they want your business will depend on the sort of deal on offer.

Cheers

Jamie
 
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