New home loan - need advice

[ibro]

Hi..

I am refinancing a home loan, have a quote with ING - $350K total loan, probably will go for interest only and pay off whatever can save up to the variable portion. Want to split..

resently the variable is 6.19%
fixed, (perhaps will do 3 years) at 7.59%.

I checked for a discount and all they offered is 0.06% off the variable (for $700 fee!) which I calculated not to be worth it... even based on the assumption that the interest will raise average 0.75% pa on the variable.

Can someone suggest a better deal based on the above req's? Is it worth it going through a broker? Any advice?

thanks guys

 

[The Y-man]

Can someone suggest a better deal based on the above req's? Is it worth it going through a broker? Any advice?

What are your other requirements?

Establishment fees?
Early termination fees?
Monthly fees?
Offset/LOC facilities?

etc...

The Y-man

 

[RocketMan]

definitely go to the broker. These banks will screw you if you don't

 

[ibro]

Y-man,

Establishment fees = approx 800, no monthly fees

Early termination fees = only break up on the fixed portion, which they couldnt quote as it is calculated on the day (??)

Monthly fees - nope
Offset/LOC facilities - no offset facility, but unlimited redraw

also they reimburse the fees for using any ATM machine as long as a withdrawal is over $200, which suits me fine.

If going through a broker, can anyone recommend one? Need to move along pretty soon..

cheers heaps

 

[RocketMan]

go for any broker. call mortgage choice for a local broker in your area. $800 establishment fees for a plain vanilla home loan? give me a break!

 

[rstephenp]

Y-man,

Establishment fees = approx 800, no monthly fees

Early termination fees = only break up on the fixed portion, which they couldnt quote as it is calculated on the day (??)

Monthly fees - nope
Offset/LOC facilities - no offset facility, but unlimited redraw

also they reimburse the fees for using any ATM machine as long as a withdrawal is over $200, which suits me fine.

If going through a broker, can anyone recommend one? Need to move along pretty soon..

cheers heaps

NAB have a good deal going around.check their site 0.8% off Std Var rate for 3 yrs plain vanilla. HSBC also have a gr8 product and a sale going on better than ING.

But I would recommend the NAB choice package for $395 per annum and u get a lot of stuff such as credit card, debit card, etc and most of the fees covered. Plus you get 0.7% for the life of the loan works out 6.04%. If international accounts is your requirements HSBC is a better product. You can negotiate with the banks better than a middle man (broker), thats just me.

cheers

 

[Rolf Latham]

The NAB broker offering at 75 % or less is 5.97 ongoing with 100 % IO pffset not like the 3 year intro at NAB retail.........


ta
rolf

 

[ibro]

thanks a lot, will check NAB and HSBC..

More advice welcome, as have to wrap up within couple weeks

cheers

 

[Rolf Latham]

HSBC looks ok on the surface, but some little nigglies that arent obvious till u get your loan docs may cause confusion.

Max IO period 3 years.............that may not work for you.

Rate wise on the variable its ok, but not market leader either

We used to do quite a lot of HSBC when they were still in the broker space, but mainly for fixed terms, not so much the variable.

ta
rolf

 

[bawatkins]

If you are looking for fixed, Adelaide has a 3 year rate at 6.99%, their variable is 6.24%. They do have a monthly fee and the est fee is $695.

Really depends on what your main requirements are?

 

[mja]

NAB have a good deal going around.check their site 0.8% off Std Var rate for 3 yrs plain vanilla. HSBC also have a gr8 product and a sale going on better than ING.

But I would recommend the NAB choice package for $395 per annum and u get a lot of stuff such as credit card, debit card, etc and most of the fees covered. Plus you get 0.7% for the life of the loan works out 6.04%. If international accounts is your requirements HSBC is a better product. You can negotiate with the banks better than a middle man (broker), thats just me.

cheers

The NAB choice package is more expensive if you have a small loan (eg $100k), ie the $395 fee costs you more than the 0.7% discount. Useful if you want to get a credit card in the mix, because the lending requirements dictated that you reduce your current credit card limit. (*glares at NAB*).

 

[ibro]

thanks for the ideas.. I spoke to NAB re the choice package, the cr card has $150 annual fee.. while they are good on the variable at the moment, not sure if $395pa makes the whole package no better than HSBC or ING mortgage simplifier..

checked the Adelaide for fixed 6.99% 3 year - doesnt apply anymore it seems. they became part of Bendigo, so things have changed I guess..

so, still looking into HSBC (they have a rediculously high early term fees $1300, also not discarding ING yet.. Westpac - checked Premier adv (used to be "professional") - SVR is pretty high to start with so 0.7% off doesnt make it much more competitive against others I think...

more advice?

thanks!!

 

[mja]

I thought the credit card fee was waived if you get the choice package??

 

[Rolf Latham]

thanks for the ideas.. I spoke to NAB re the choice package, the cr card has $150 annual fee.. while they are good on the variable at the moment, not sure if $395pa makes the whole package no better than HSBC or ING mortgage simplifier..
!

The NAB broker offering at 75 % or less is 5.97 ongoing with 100 % IO pffset not like the 3 year intro at NAB retail.........

and if the loan is greater than 300 k the app fees are small, and the ongoing fees of 10 a month per split incl an offset and a gold card.

If you need LMI, then the whole costings issue can become irrelevant because there can be a big variation on LMI premiums

ta
rolf

 

[bcoombs]

If you want to go fixed Adelaide Bank offer is still available via mortgage brokers. Had a meeting with them the other day, Adelaide Bank is their broker/wholesale model. They are coming out with a few 'broker only' products lo-doc commercial one of them.