loans.com

[jackbak]

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??

I think you're referring to loans.com.au right? If so I have a mate with them and has been very happy. They've been exceptionally low for years.

I wouldn't worry about customer service reviews - I haven't spoken to my bank in years! And yes I believe they make you pay the valuations but you generally only need it once and they are upfront about it so I don't see the problem. They're a low cost lender, you should expect these things.

 

[euro73]

I worked there (FirstMac - the parent company) for years and was involved in the launch of loans.com.au. To say it's a poor service proposition and all too hard is just rubbish. If you give them what they ask for, processing is very fast. If you drip feed information, expect a painful experience. But they have a great team of people there (or at least they used to - cant see why that would have changed ) so the service proposition is not a bad one. But at the end of the day they lend money, and they are running a business not a charity. So they have to work within protocols and work flows that fit with delivering a rate that low while staying profitable. Not so easy as one would imagine. CBA have tried and failed. ANZ have tried and failed. NAB have kind of succeeded with UBank but the product is literally a super basic no frills product. Loans.com.au is a significantly better product and cheaper.

But they wont just hand it to you. You have to do a bit of work if you want the cut price rates they offer. And its certainly not for everyone, because sometimes in life we need advice and assistance and expertise and experience. For those requiring those things, engage the services of a broker instead. There are many other good products available in Australia with very low rates, where a broker can assist you.

 

[albanga]

So do they not pay any commission to brokers?
If not do any brokers still deal with them on behalf of their clients and perhaps charge the client an upfront cost? Or is this just not possible.

 

[Shahin_Afarin]

I worked there (FirstMac - the parent company) for years and was involved in the launch of loans.com.au. To say it's a poor service proposition and all too hard is just rubbish. If you give them what they ask for, processing is very fast. If you drip feed information, expect a painful experience. But they have a great team of people there (or at least they used to - cant see why that would have changed ) so the service proposition is not a bad one. But at the end of the day they lend money, and they are running a business not a charity. So they have to work within protocols and work flows that fit with delivering a rate that low while staying profitable. Not so easy as one would imagine. CBA have tried and failed. ANZ have tried and failed. NAB have kind of succeeded with UBank but the product is literally a super basic no frills product. Loans.com.au is a significantly better product and cheaper.

But they wont just hand it to you. You have to do a bit of work if you want the cut price rates they offer. And its certainly not for everyone, because sometimes in life we need advice and assistance and expertise and experience. For those requiring those things, engage the services of a broker instead. There are many other good products available in Australia with very low rates, where a broker can assist you.

Its just people trying to justify the low cost - so they say the service is terrible. Even if it was terrible - the real question is how many times are you going to contact them and are they really that bad when compared to any other lender on any other given day?

I have 2 customers that have used them and are quite happy.

 

[jackbak]

I worked there (FirstMac - the parent company) for years and was involved in the launch of loans.com.au. To say it's a poor service proposition and all too hard is just rubbish. If you give them what they ask for, processing is very fast. If you drip feed information, expect a painful experience.

I agree with that, I started the application process with them and they were very good to deal with.

 

[euro73]

So do they not pay any commission to brokers?
If not do any brokers still deal with them on behalf of their clients and perhaps charge the client an upfront cost? Or is this just not possible.

They are a direct retail model. Brokers can access the same product ( it has a different name but it's the same product ) under the FirstMac brand and receive remuneration. Obviously the rate isn't quite as sharp that way But it's still a very very good deal ...

Right now - should you be interested, one of the many brokers on the forums (Redom, Rolf, Shahin etc) broker can assist you into a FirstMac loan where the $295 annual fee for is waived for the life of the loan under the VIP loan package. This deal is available to all applications received on or prior to 31st March 2015.

The Firstmac VIP package features:
100% Redraw Offset
10 free splits
Free budgeting software
Free RP Data report
10% discount on standard FirstMac home and contents insurance premiums

4.44% p.a (4.48% p.a comparison rate*) for loans above $250,000 up to 80% LVR with NO annual or ongoing fees.

 

[Dianab]

I applied as their rates was very attractive, however during evulation they claimed my property might be containmented being next door to a petrol station and request my soil tested etc.. i decided to give them the flick and went with anz.

 

[two40]

I've been using them since Sep 2011.

I have refinanced two loans, processed a new one and currently in the middle of another application.

I use their offset account as my main savings account and I have no issues whatsoever. Mine and my partners' wages go in there, all our bills are paid electronically from it and it's linked to my PayPal. Their products suit me just fine.

For any large transactions requiring bank cheques I visit my local Westpac and sure I might need to explain to the perplexed teller what to do with this card they've never seen before but it's a few minutes of my time and it doesn't bother me. If it's not a timely matter I just electronically transfer funds to my CBA account and visit them instead.

I had some issues while refinancing one of my loans where my card was linked to the wrong account and I just happened to be at the bank drawing a bank cheque for a car purchase. A quick phone call and they linked the cards properly and I was able to complete my transaction all without leaving the bank. Apart from that instance I've not really had the need to communicate with them.

I do not consider myself particularly knowledgeable with all things finance but I know how to fill in a form, how to pick up the phone to ask them a question if things aren't clear and I can sign on the dotted line.

 

[jackbak]

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.

Just been advised that they have passed on the full discount to existing loan holders. The advertised interest rate is the same for new and existing customers.

 

[oracle]

Loans.com.au to pass on full rate cut

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]




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

Full article here

Cheers,
Oracle.

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.

?Loans.com.au passed on the full rate cut to new business immediately and we are very pleased to be able to extend the rate cut to our existing customers,? said loans.com.au Pty Ltd Managing Director, Marie Mortimer.

Link here

I also have loans with CBA and not really happy that they only passed 20bps whereas loans.com.au have passed on the full rate cut. My current rate with loans.com.au will have a 3 in front of it. Not bad!

Cheers,
Oracle.

 

[Brady]

Link here

I also have loans with CBA and not really happy that they only passed 20bps whereas loans.com.au have passed on the full rate cut. My current rate with loans.com.au will have a 3 in front of it. Not bad!

Cheers,
Oracle.

As long as loans.com are still around if anything does happen to go south again with the economy should continue to enjoy a much lower rate then any of the majors.