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Anyone used loans.com.au before? They are now offering 4.75% variable which is the cheapest I can find at the moment and just wondering if they have a history of offering low rates and then hiking up the rate after a couple of months?
Cheers
jackbak
no, but if they do have such a history, so what? A rate focussed customer will simply find the most cheapest rate every six months or so and move lenders.
Thanks tobe, it's important to me because my wife will be off work within the next 12 months and we rely on her income to get finance, so once she stops working we will be unable to meet the servicing requirements of banks and wont be able to just move lenders at will.
So you can't meet servicing requirement and still going to buy
Thanks tobe, it's important to me because my wife will be off work within the next 12 months and we rely on her income to get finance, so once she stops working we will be unable to meet the servicing requirements of banks and wont be able to just move lenders at will.
Ahhhh.cashies wink wink
Then choose a lender whose variation policy is simple, and not 'credit critical'. ie one that doesnt ask for a new application when you want to make changes to the loan.
And no, Im not sure what Loans.com process is for variations.
Is it purely online based? Could be hard sometimes if you need assistance. I sued to work for Cba before and I remember the loan specialist saying her new clients were fidningt hard egtting statements from an online loan provider they were using- charging them high fees to even send it out. Not sure, just putting that out there that they may not be as flexbile (if it is purely online)
Self interest dictates that we brokers don't usually recommend online lenders like loans.com.au or ubank. However, if absolute rock bottom rates are your main priority, then by all means go for it.
There's a modest amount of consumer feedback on the whirpool forums. Use Google and search the following: site:whirlpool.net.au "loans.com.au"
My observation is the feedback is generally better than some of the other operators in this space.
My own thoughts are that if you're after a simple, cheap loan for your own home and have little to no investment asperations, they're probably going to be fine. If you're going to build a serious investment portfolio and access equity in this property, alongside various serivicing and tax related implications, there might be a more appropirate finance strategy.
As a broker one of the important things I'm often asked is to provide compeditive rates. Obviously this is very important. It's also interesting that after 3-4 properties, most investors still want competitive rates, but their priority changes to the lender that can provide the money on reasonable terms, rather than simply the cheapest rate.
I'd also be a little nervous about using seasonal income to get a loan with an online lender.
the simple fact that loans.com.au is funded by FirstMac who use mortgage backed securities as their funding, makes me shudder.
are they collaterising your debt to onsell as funding elsewhere? if so, who holds the title to your land?
after seeing the robosigning mess in the US, i don't think i would entertain using any loans.com.au product regardless of interest rate.
next thing you know a creditor wants your house even though you haven't defaulted on your obligations.
If they get bought out by another financier then you simply owe the money to someone else, under the same contract conditions. No one will come looking for your house if your making payments, if they do you get finance from someone else.
If they get bought out by another financier then you simply owe the money to someone else, under the same contract conditions. No one will come looking for your house if your making payments, if they do you get finance from someone else.
Rates are definitely my number one priority at the moment, the best my broker has recommended is 5.13% and the loan is $1.35m so even though the difference is only .38% it will save me thousands every year.