Mortgage House "Carpe Diem Home Loan" 2.98%

[Graham73]

Hello fellow investors,

This sounds like it's too good to be true! Has anyone refinanced to get this 6 month 2.98% special rate?

If so, what discounted rate were you able to negotiate after the 6 month intro period?

I know, if it sounds too good.... etc but thought I'd see if anyone has saved a few (thousand) dollars with this product.

Would be great to take some business away from the big 4 bankers too!!

Regards,

Graham

 

[Blitzkrieg]

http://mortgagehouse.com.au/home-loans/carpe-diem-home-loan.aspx

Full Doc - 2.98% for 6 months reverting to 7.35%.



The 2.98% for 6 months is 1/60th of the loan term (30 years). They aren't losing.....

Also can't see what the break fee is if you decide to move your loan to the next 2.98% mega deal 6 months later.

 

[Marty McDonald]

Normally this kind of deal would have an early exit fee of say 2% or more of the original loan amount in the first 4 years. So you are locked in for 4 years. After the first 6 months you revert to say the standard rate as above 7.35%, if you do your sums it isn't a real saving.

It might be good if you planned to pay a lot off principal in the first 6 months but besides that I think there would be better deals around. Such as loans with a large ongoing discount off the standard rate (will depend on loan amount) or a 1 year intro deal which can be switched after the first year for a small fee.

 

[Simon]

From bitter experience I can tell you that if something sounds too good to be true then ....... You know the rest.

 

[Graham73]

Hi Blitzkrieg, Marty and Simon,

Thanks for your replies. Yes, definitely a dud deal if it reverts to say 7.35% but was interested to see if anyone had negotiated a discounted variable rate.

I'll contact them and see what they offer on my loan balance, will post my findings later!

Regards,
Graham

 

[Rolf Latham]

do u need offset ?

ta
rolf

 

[Graham73]

Hi Rolf,

I'm currently with ANZ and do use offset accounts. On a 0.9% discounted rate.

Regards,

Graham

 

[Rolf Latham]

Hi Graham

Just as an aside, if you do need a proper offset, I believe this product isnt suitable

ta
rolf

 

[Evachange]

The deal with Mortgage House 2.98% is to get the phone rining, its good for 6 months.

For the brokers that write this loan there is no upfront and trial starts after 6 months.

Exit fee's, can't remember but at least 1% I believe.

I am not will to say anymore in a public forum.

Kind Regards,

 

[peaches]

We call them "honeymoons with a hangover".

 

[Graham73]

Hi Everyone,

I haven't had a good look yet but here is a link with some details:

http://mortgagehouse.com.au/home-loans/conservative-home-loan.aspx?WHID=647650&SID=15&CD=&PID=20027

Regards,

Graham

 

[Peter 14.7]

Friend's Experience

I met a guy at a BBQ who had an experience with another Company (like Mortgage House but not) who told me:

He had loans with Lender (like Mortgage House but not)to his online accounts so he could not calc the payout and when he went to leave (after they raised rates well above expectations of RBA) he found it a very painful experience.

Why? The Lender (like Mortgage House but not) locked out access to his online accounts, then sent incorrect payouts to him, not once, but 3 times.

Why wrong? Lender (like Mortgage House but not) kept taking out repayments but forget (3 times) to deduct them from figures, each time. Loan closure was delayed 4 months! Had he had been settling on a new property it would have fallen over costing him 10% or he would have had to accept their figures. Luckily he was refinancing.

What did he do? He went to Banking Ombudsman to complain but was told, they are not a bank so we cannot help (This I believe has changed). When he went to Mortgage Industry Association of which this lender was member they said “not our role to mediate. Goodby!” Sought legal advice and told prepare to spend $5k minimum.

Only persistence of literally sitting in Lenders (like Mortgage House but not)
office got the correct amounts, he tells me.

Of course this is an experience of some guy at a BBQ on another Company (like Mortgage House but not).

Regards, Peter

 

[peaches]

I think you will find similar stories posted on this forum by real victims who name the culprits. It is a risk with mortgage managers as they are really a middleman.

There are some with long track records that I would still recommend to my clients but only a very few.

 

[Evachange]

I have found some Mortgage Manager's work depending on the clients situation.

Some of the MM I have used I have been happy with, others, well...