loans.com

H

Hodge

Does anyone on SS use loans.com? I would never use them but often wonder why their rate is so low? Just reading on their website they offer:

  • 4.29%
  • Offset account
  • redraw

I've read some of the reviews and basically the 2 main negatives customers keep mentioning are bad service and customer needs to pay for valuations. Is there something else I'm missing??
 
Owned in full by FirstMac but sold direct, without having to pay a broker a comm or a trail. If you are experienced and don't need a broker to assist, its certainly a great rate, and a significantly better product than the other leading online lender UBank. If you aren't experienced and do require a brokers assistance or advice, it's not suitable for you.
 
Lack of physical addresses and lower staff ratio would be a major overhead advantage so perhaps a few basis points worth there.


pinkboy
 
Just seems too good to be true to me. Like I said I would never use them but would be interesting to see if any investors use them.
 
Great until you want to do anything besides set and forget. I know of numerous experiences of customers being lead down the golden path, then stiffed for minor reasons, charged excessive fee's compared to market to make loan adjustments etc.

If you're a serious investor who is building a portfolio, I don't see their products being great other than RATE.
 
Does anyone know how much of the RBA discount they gave to existing customers? Wondering if they allow existing loans to get the full discount.
 
Terry_w said:
Does anyone know how much of the RBA discount they gave to existing customers? Wondering if they allow existing loans to get the full discount.
Click to expand...

I would be pleasantly surprised if they did?

Perhaps thats the catch. OP should ask the question before proceeding.
 
Hodge said:
Does anyone on SS use loans.com?
  • 4.29%
  • Offset account
  • redraw
Click to expand...

I have been using them since May 2014 for my PPOR loan. I refinanced from ANZ. I tried to get bigger discount from ANZ and they would not give me any further discount than 0.70% on my close to $500K loan. At the time interest rate from ANZ was 5.17% and loans.com.au was giving 4.49%.

I threatened to leave saying I can get much lower rate and would also save on Annual package fees along with significant savings in interest bill every month. ANZ didn't care to lose my business and I didn't have any loyalty towards them either. So I decided to refinance to loans.com.au

Have to say everything went pretty smooth although you have to do all the work in terms of preparing the loan application and providing all supporting docs.

I have saved $1000s of dollars in interest savings over that last 9 months and will continue to save going forward. Have nice 10 year IO loan period and pretty much set and forget. It's not suitable to everybody out there but for me that is exactly what I was after.

[PS: Their dream home loan essentials interest rate is 4.23% and not 4.29% - Link]

Terry_w said:
Does anyone know how much of the RBA discount they gave to existing customers? Wondering if they allow existing loans to get the full discount.
Click to expand...

Colin Rice said:
I would be pleasantly surprised if they did?

Perhaps thats the catch. OP should ask the question before proceeding.
Click to expand...

Market leading online lender loans.com.au will pass on the full 0.25 percent rate cut to existing customers following the RBA?s announcement on Tuesday.
Click to expand...

Advertised same day the RBA announced rate cut. Effective from 23rd Feb.

Full article here

Cheers,
Oracle.
 
Last edited:
When I used to work there - FirstMac I mean - loans.com.au launched with an expectation of attracting sub 300-400K clients, mainly 80%+ LVR's, and mainly younger, internet savvy clients. That's not what occurred - they actually attracted much more mature clients and much larger average loan sizes. Whether that has continued to be the case in the 2.5 years since I moved on , I don't know...

PS - some useless trivia for you. One of Mad Max's /Braveheart's brothers worked there when the brand launched.
 
Corey Batt said:
Great until you want to do anything besides set and forget. I know of numerous experiences of customers being lead down the golden path, then stiffed for minor reasons, charged excessive fee's compared to market to make loan adjustments etc.

If you're a serious investor who is building a portfolio, I don't see their products being great other than RATE.
Click to expand...

Actually their servicing calculator is quite strong. Cash Out policy too. They take actuals on all existing debt ( including their own) they take 80% rent and they take neg gearing and addbacks.

The biggest disadvantage is they are essentially self service. Their telephone based model is simply there to take your order and set the deal in motion. Structural advice, and whatever other things that may require careful consideration, dont come with the service. For that, you need a broker, who gets paid, and thats why there's a difference in the rate. You should only seriously consider using loans.com.au if you have no need for assistance - otherwise use a broker
 
Last edited:
Hodge said:
Does anyone on SS use loans.com? I would never use them but often wonder why their rate is so low? Just reading on their website they offer:

  • 4.29%
  • Offset account
  • redraw

I've read some of the reviews and basically the 2 main negatives customers keep mentioning are bad service and customer needs to pay for valuations. Is there something else I'm missing??
Click to expand...

loans.com is owned by Bank of America. Unless you're buying American property I'd assume it wouldn't be a good idea to try to borrow from them??
 
Hodge said:
Does anyone on SS use loans.com? I would never use them but often wonder why their rate is so low? Just reading on their website they offer:

  • 4.29%
  • Offset account
  • redraw

I've read some of the reviews and basically the 2 main negatives customers keep mentioning are bad service and customer needs to pay for valuations. Is there something else I'm missing??
Click to expand...

Stricken credit policy. Your paper work need to be spotless, or LVR will fall short of 80%.

I applied once and was approved but at the end I gave up.
 
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