Discussion in 'Property Finance' started by jpcashflow, 10th Feb, 2015.
News just come in that Me Bank have 4.28% fixed rate for 3 years!!!
Just a shame their SVR is so crap. ..
Let's hope the big banks get close to matching this!
If I'll be able to fix at below 4.44% (my variable rate in two weeks' time), I will.
But everything else about ME is worth walking a country mile for
Their credit policy is one of the most user friendly, particularly for non-standard securities
I like them for their NRAS, as it caters very well to fixed rates. Also, I could be wrong about this, but I believe they're a lender that take debt at actual repayments and don't credit score - plays a role too. Generally back end can be frustrating - have heard numerous unpleasant experiences about their assessors.
Yep, OFI at actual and no credit scoring.
Assesors can be anal and by the book policy wise.
What a pity you listen to rumours that tell nasty stories about individual people.
I have nothing but praise for the team at ME, I have a construction loan being funded with them now and they have all been the most pleasant, helpful, cheerful and diligent team throughout the whole process
The local council took more than 8 months to issue the building permit and the land loan had settled but the construction loan had lapsed, and the customer had to come up with nearly $40,000 while ME and I worked as quickly as possible to get the new construction application approved and ready for funding
They have since allowed the customer an extraordinary drawdown so that he can have his cash back and have done the next two progress payments literally within days of receiving the builder's invoice
They take the trouble to call the broker (me) and to keep me informed of progress. I am only sorry that I haven't put more business their way. I know for a fact that if they hadn't accepted the security where the house is being built I doubt that the deal would have run with anyone else at that time
Good to hear a positive experience Kristine.
To date, i've had my few loan deals with them go reasonably smoothly, but they aren't a lender I particularly deal with too much.
I don't think their rumours, I trust my sources and my colleagues on the forums who generally don't have the most pleasant experiences with their back end processing.
The thing about Me bank ( which WAS common with most credit union) is that half of their loans are still insured for loans under 80% LVR ( they pay the LMI of course) ! which is stupid given the size of this credit union and their funding source....
+ they have a rent reliant policy + one of the worst I/O policy.
Overall ok banks for the right fit- ie some unique situation and security...they love the PPOR loans...but when it comes to investors with 10-20 properties it's game over for these credit guys...
End of rant.
Allot of my clients have nothing but good words about Me Bank. In fact I find them to be very helpful in all aspect and my BDM is a gun.
I haven't used ME much for some of the reasons that Mick has outlined. The I/O policy is fairly restricted and their offset account only really works for owner occupiers with P&I loans. Being heavily securetised is a significant disadvantage to investors building large portfolios.
Certainly they've got some niches. Market leading fixed rates, friendly to deal with, generous serviceability and some other policies that work well for some people.
Realistically though, the fixed rates are about 0.1% lower than their competitors, but their variable rates are about 0.4% higher. In the context of most peoples lending behaviour it's not a cheap loan, but it does make a good headline.
They do fit well for some people, but they're rarely a good fit for serious investors.
My experience with them hasn't been all that great. Not a lender I often use.
Sharp fixed rates - poor variable rates. Some policy niches that work well for some.
ME bank: incompetence galore
Extremely frustrating experience with ME bank with respect to owner builder loans:
I was lead to believe that ME bank does Owner builder loan. Loan was provisionally approved and a (bank appointed) valuation completed over a period of 2 months, till I get a whole litany of objections i.e. we did not consider your kids in the loan application. When the information was evidenced from loan application, the objection changed to, we did not consider Centrelink payments. Resent the information and the final objection was we do owner builder after lock up stage along with a copy of the policy i.e. 8 weeks into the loan approval.
How is the loan an owner builder loan when at lock up stage ? Just the interior fit-out is remaining. The sales representative and later the sales manager were involved till final refusal based on the bank policy, which they were ignorant of till someone in the loans department pointed out.
In the interim calls were not answered, loan department was inaccessible, valuers communication did not flow to me or the sales personnel and to top it all, I was forwarded loan details and private information about another applicant, whose loan was also simultaneously being processed.
Owing to their incompetence, I am looking for alternate loan and trying to liquidate PPOR.
I know zip about your circumstances
owner build adds a further layer of complexity that most lenders dont want, and they will tell you so at the front end.......... ME may be to much chicken
Fair enough regarding lack of clarity about my circumstances and ME chickening out at the last moment.
Nevertheless, ME Bank advertises for providing owner builder loans, whereas clearly their own policy prohibits it till lock up stage and they have no intention of funding till lock up stage.
Is it a case of misrepresentation and worthwhile reporting to financial regulators ?
Doubt it. ME Bank most likely have this policy in place to ensure the structural component of the build is built by a regular builder, and their definition of owner/builder is to allow all the soft furnishings (which can be more easily rectified should something go wrong).
Staff incompetence and human error are not acceptable, but is it worth pursuing anyway? Move on and find a lender that will get you to where you want to go.
Owner builder loans ...... I pass on the phone number of NAB and hope they never call me back
Soil test, I dont need one of them coslty things all the other ones I know of on the estate are M ........................
Separate names with a comma.