Pretty good deal ... 4.89% with offset account.
Anyone switched over ?
https://www.loans.com.au/home
Anyone switched over ?
https://www.loans.com.au/home
loans.com.au ?
- Thread starter Success
- Start date
I guess if youare targetting one or 2 ips or a ma n pa PPOR loan such online only products can be a great solution.
for most looking to build a portfolio, current and FUTURE availability of funds is more of an issue than specific rate
One missed opportunity is worth more than 100 pts of interest rate in the middle to long term.
Online lenders have their place, but focussed investors aint that place
Another good provider is www.ubank.com.au
ta
rolf
for most looking to build a portfolio, current and FUTURE availability of funds is more of an issue than specific rate
One missed opportunity is worth more than 100 pts of interest rate in the middle to long term.
Online lenders have their place, but focussed investors aint that place
Another good provider is www.ubank.com.au
ta
rolf
Hi Success
Yes, we've refinanced with them and are currently in the process of signing the docs right now. Was paying 5.39% plus $395 pa with StG so happy to transfer to 4.87% and no annual fee. Exactly the same product as we're getting with StG.
Staff have been very professional and contactable to date
Rudi
Yes, we've refinanced with them and are currently in the process of signing the docs right now. Was paying 5.39% plus $395 pa with StG so happy to transfer to 4.87% and no annual fee. Exactly the same product as we're getting with StG.
Staff have been very professional and contactable to date
Rudi
cough..........
Ok so a Chery car has 4 wheels and does the same basic thing as Benz or Lexus etc in that they transport people, but they arent exactly the same, and in fact not even remotely comparable.
The product may be fit and comparable for YOUR specific use, but totally in appropriate for someone else. In fact, the mere act of refinancing to another lender may not be suitable in many instances once future goals are taken into account.
Dont be surprised if that spread lessens over the next mths, not because mainstreams are dropping margins, but I expect that with the Fed gov not supporting RMBS as much, that the pricing will go up a little.
ta
rolf
Hi Success
Yes, we've refinanced with them and are currently in the process of signing the docs right now. Was paying 5.39% plus $395 pa with StG so happy to transfer to 4.87% and no annual fee. Exactly the same product as we're getting with StG.
Staff have been very professional and contactable to date
Rudi
I get where you are coming from buts its a chalk and cheese comparison. There are a whole bunch of short and long term factors that come into play.
Hi coolcup69, from the terms & conditions...
"We will establish an offset / redraw facility for you. The amount which is available for you to redraw may be shown in a separate offset / redraw account statement forwarded to you periodically. If you have repaid early $20 or more, so long as there is no default under the loan agreement, you may reborrow any amount by withdrawing money from the redraw/offset account for any purpose you wish provided you reborrow not less than $20 and not more than the total amount you have repaid early"
So, I believe it is a redraw account and not offset account since the term said that you reborrow money. From what I know, offset account is fully transactional, i.e. no limitation on the amount you want to withdraw as long as you have that amount in your offset account. I may be wrong though...
Rolf, what I should have said was "we'll be taking advantage of exactly the same bells and whistles within the product i.e. the offset acct, as we are with StG product.
Agreed, the product fits our specific use, and confident that will be the case down the track having taken into account our future goals.
As long as all of the 0.52% spread isn't eaten up, think there should be some savings to be enjoyed.
Rudi
It was something I definitely wanted calarifying so I spoke at length to the chap on the phone about the very distinction and was satisfied with his explanation that any money one has in the offset/redraw facility is effectively offset against the outstanding amount on the loan. I guess I'll find out
Rudi
its been a long standing point of contention with firstmac retail and reseller product, easily put to bed with a CLIENT PBR, which I havent yet seen.
Im no accountant, technically the product complies as being discrete to the loan itself.............but with all things foggy in tax compliance, many will err on the side of caution.
FM doesnt have a banking licence and as such I believe cant do a tradtitional offset where your money stays your money.
As a parallel and valuable discussion, "not in default" doesnt legally mean what you think it means.
just some area of contention revolves around placing your larger scale cash to someone that has specific control over the funds.
Section 7 provides for some interesting reading =,yes this one is Ubank, or Advantedge - id take a punt FM isnt much different. Yes I know it would never happen.......
http://www.ubank.com.au/ubank/ib/documents/uhomeloan-terms-conditions.pdf
ta
rolf
As I said to Rolf, instead of comparing the products I should have compared a)what we've been taking advantage of with the StG product with b) what we'll be taking advantage of with the loans.com product. i.e. we plan to continue to pay off the P&I whilst having a bit of spare money sitting in the savings (acting as offset). Closer to apples and apples than chalk and cheese to me.
Starting point is 4.87% and no annual fee versus 5.39% and $395 annual fee - hope I'm not missing anything!
Cheers
Rudi
any money one has in the offset/redraw facility is effectively offset against the outstanding amount on the loan. I guess I'll find out
Rudi
That doesn't clarify whether it is an offset account versus a simple redraw. Both will offset interest fully, but the tax implications of an offset vs a redraw are quite substantial.
What are the main cons of these lenders?
The numbers look good to me, and as a first time buyer, this could be viable.
I was otherwise looking at going through Bankwest, simply because I have all my accounts with them already and the rates look good - although admittedly I haven't compared all options yet (I'm not at that stage yet - still trying to find a property...).
But this rate is much cheaper...
The numbers look good to me, and as a first time buyer, this could be viable.
I was otherwise looking at going through Bankwest, simply because I have all my accounts with them already and the rates look good - although admittedly I haven't compared all options yet (I'm not at that stage yet - still trying to find a property...).
But this rate is much cheaper...
It's important to note, as already highlighted by Rolf, that you should assess the risk (if any) too. It could be possible that any savings you have in the so called 'redraw offset' account can be frozen by the lender if you default on the loan, eventhough the savings are identified by a separate account number. You'll need to look at substance over form.
I know that for any of the big 4, the offset account is separate and distinct to the loan account. The bank has no authority to hold back on your offset account withdrawals if you default on your loan account. Of course they can pursue recovery through legal channels.
I know that for any of the big 4, the offset account is separate and distinct to the loan account. The bank has no authority to hold back on your offset account withdrawals if you default on your loan account. Of course they can pursue recovery through legal channels.
Read your mortgage memo about what default actually means contractually.
Its not just you arent paying your loan..........
ta
rolf
I don't have a mortgage yet, but will keep this in mind when I do.
