I'm sure getting FF points outweigh the ability to screw your serviceability over
If 0.05% is going to screw your serviceability over, I think you're already in trouble.
Macq Bank vs Commbank
- Thread starter cenz
- Start date
If 0.05% is going to screw your serviceability over, I think you're already in trouble.
If 0.05% is going to screw your serviceability over, I think you're already in trouble.
I wasnt referring to the rate, I meant choice/order of lender(s)
CBA automated pricing request would likely rtn 4.90 ,ie 100 pts off rack for a 720 global lend.
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Is that 100 points off outside of their wealth package charged at $395pa? Just preparing myself before I get to the bank this afternoon. Cheers.
With the Wealth package.
Damn. Ever heard of CBA waiving that fee? I suppose they have to make money somewhere, right?
They waived it for me a few years back (after having the package for many years). I just rang them up and asked and they did. I may have got them at a good time.
BR
ever heard of someone choosing a wife job or house as FF points were on offer? Who choose a lender based on points you may or may not redeem? And those points and their value pare taxable if it's an IP... Damn. No such thing as a free lunch.
MB has excellent cash out policy even over 90% but they limit it to 20%. What have they asked for that makes it an incredible pain?
ummm MB has an DUA at 85%LVR for unlimited cash out and generally no proof required. >85% it's the lMI territory but this is sort of standard with most banks.
How much are you asking for? LVR and what was your declared purpose?
Cenz,
As others have pointed out, the first factor to consider is your long term strategy. If you are building a property portfolio, most need to get the lenders in order, which to use when and for what property.
Both CBA and Macquarie have reasonable servicing calculators for multiple property owners. However both have some constraints in packages. Macquarie have a policy of not being able to mix loan types, so if you are looking for a revaluation/refinance strategy for a new LOC facility, you could not if you have a offset with them already. I do not know why.
Lenders often have different discount levels and LVR pricing, so what may work for one will not be as competitive with the other. Most times it is worth knowing what these are so if you are close to a level, go another $20k or so to obtain the higher discount offered.
As to the FF package, for an additional 0.05% it could make sense if it is an IP loan, cheap flights essentially discounted by your MTR as Mick C suggests.
As others have pointed out, the first factor to consider is your long term strategy. If you are building a property portfolio, most need to get the lenders in order, which to use when and for what property.
Both CBA and Macquarie have reasonable servicing calculators for multiple property owners. However both have some constraints in packages. Macquarie have a policy of not being able to mix loan types, so if you are looking for a revaluation/refinance strategy for a new LOC facility, you could not if you have a offset with them already. I do not know why.
Lenders often have different discount levels and LVR pricing, so what may work for one will not be as competitive with the other. Most times it is worth knowing what these are so if you are close to a level, go another $20k or so to obtain the higher discount offered.
As to the FF package, for an additional 0.05% it could make sense if it is an IP loan, cheap flights essentially discounted by your MTR as Mick C suggests.
cba online pricing just did 4.84 for me on 296k at 80%
The big issue I'd see is maintenance after or if something pops up.
Macq substitution of security gives me headaches, at least cba can do it although its a clunky process
Macq portfolio and SVR products do have a lot of flex - you can debit a macq loan account like a LOC for interest payments
So a hybrid loc with offset can make it a funky little thing depending on need.
The big issue I'd see is maintenance after or if something pops up.
Macq substitution of security gives me headaches, at least cba can do it although its a clunky process
Macq portfolio and SVR products do have a lot of flex - you can debit a macq loan account like a LOC for interest payments
So a hybrid loc with offset can make it a funky little thing depending on need.
how could anyone seriously consider Macquarie? it was only a couple of years ago that they upped and left the market leaving anyone with a preapproval holding a worthless piece of paper. so they are back at it again hey.... here today gone tomorrow, ooh look they are back again
if you don't have a loan with the big 4 you are in a dangerous position, you need quick exit strategies and large servicing buffers as they can lift their rates willy nilly by 3%+ if they suddenly decide to sell up, or exit the market and milk all the stranded cows caught in the toppaddock for all they are worth - ask my mate that got stuck with rams ver. 2?? or 1, can't recall, whatever it was they went for the kill on the interest rate and if you didn't like it they took a piece of flesh on the exit fees
if you don't have a loan with the big 4 you are in a dangerous position, you need quick exit strategies and large servicing buffers as they can lift their rates willy nilly by 3%+ if they suddenly decide to sell up, or exit the market and milk all the stranded cows caught in the toppaddock for all they are worth - ask my mate that got stuck with rams ver. 2?? or 1, can't recall, whatever it was they went for the kill on the interest rate and if you didn't like it they took a piece of flesh on the exit fees
Ausprop makes a valid point that you need safety buffers before you take on any debt and having an exit strategy is always wise, even if you never need to use it.
I would not agree that any lender other than the Big 4 leaves you in a dangerous position however. THE GFC brought a lot of pain but it also gave us some legislation that killed the DEF so it is far easier and a minimum cost to move lenders now. If you were a low doc borrower, you may still be caught with any radical changes in the market of lenders but using a policy of just sticking to the Big 4 is a costly strategy, they tend not to be market setters in terms of price and some of the second tier lenders in Australia may have parents far larger than any of the Big 4 here. They may also be far more suitable to some circumstances than the Big 4, so I would not discount or ignore these other lenders.
I would not agree that any lender other than the Big 4 leaves you in a dangerous position however. THE GFC brought a lot of pain but it also gave us some legislation that killed the DEF so it is far easier and a minimum cost to move lenders now. If you were a low doc borrower, you may still be caught with any radical changes in the market of lenders but using a policy of just sticking to the Big 4 is a costly strategy, they tend not to be market setters in terms of price and some of the second tier lenders in Australia may have parents far larger than any of the Big 4 here. They may also be far more suitable to some circumstances than the Big 4, so I would not discount or ignore these other lenders.
AUSPROP, great post!!
Completely agree. I would never put my lending with these institutions therefore I would never put my clients loans there either
