ME bank

Does anyone know who is backing the new ME bank?

I haven't really been following the news much and they seem to have appeared fairly suddenly without much fanfare, but maybe that's just me with my head in the clouds again :)
They seem to have some good loans on offer, but are they safe??
Thx,
JB
 
I use ME bank for a few of my loans and have been with them since December. Very happy so far - no hassles at all.

As for safe - I would say they're as safe as any other Aussie bank. I know they're backed financially by industry super funds and unions.

I certainly have no concerns.

Edit - when I refinanced two loans I had with ANZ with them (because ANZ didn't want to refinance me despite me being a long term customer) they were more than happy to despite me working on a part time fixed term contract while I was finishing uni, although i did have a signed contract in place for a full time job.
 
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Industry super funds. Rate wise I believe they used to be more competitive but now not so flash especially if you want an offset facility. the 95% LVR's have appeal if you're in that market.


Regards
Steve
 
We have used them for over 7 years, so they are not that new. Never had problems, though they tend to be conservative with their lending requirements.

bye
 
We have used them for over 7 years, so they are not that new. Never had problems, though they tend to be conservative with their lending requirements.

bye

Hi Bill,
I see though that they will give 95% loans....Have u had any problems getting finance if your current IP's are CF+ ?
JB
 
Hi,

We have only borrowed up to 80%, don't like paying LMI. They take 75% of rent as the figure for loan repayment and allow IR to go up ~2% when calculating ability to repay loan, therefore your CF+ IP would have to have a rental yield of ~12% to be considered self-funding.

Like I said they are conservative.

bye
 
<<<<They take 75% of rent as the figure for loan repayment and allow IR to go up ~2% when calculating ability to repay loan, therefore your CF+ IP would have to have a rental yield of ~12% to be considered self-funding.>>>>

Thx Bill,
OK, best I can do before tax is 7%...after tax I'm not sure, but I guess it would improve to a max of 8.5%
So they are actually seeing me in shortfall of around 3.5 to 4% !!

So, is it possible to get 12% on a residential IP? You would have to buy at 50% market value I would reckon...Is that correct, or are there other strategies (apart from a reno) can be used?

thx,
JB
 
Remember Bradje, that you can use your wages income to make up the rest (up to 30% of income for ME for paying off loans).

You don't have to get a property at 50% off, you could use 50% deposit.

bye
 
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