Opinions on LoanAustralia

[MrHyde]

Here is my experience with them.

Around the time of my previous posts, I put in my details for pre-approval and got an email pretty quickly and the paperwork arrived in the mail about 2 days later. Another day later, they called to ask if everything was ok and if I had any questions. At that time, I didn't.

Later, I had a few questions that I emailled them and have not received a reply in over a month.

In the end, I went with a MB from this forum as they provided more flexible options.

Cheers,
MrHyde

 

[MCM]

Here is my experience with them.

Around the time of my previous posts, I put in my details for pre-approval and got an email pretty quickly and the paperwork arrived in the mail about 2 days later. Another day later, they called to ask if everything was ok and if I had any questions. At that time, I didn't.

Later, I had a few questions that I emailled them and have not received a reply in over a month.

In the end, I went with a MB from this forum as they provided more flexible options.

Cheers,
MrHyde

Just curious but what were the flexible options you couldn't get with LoanAustralia?

 

[Jocker10]

Hello...

I am also curious about Loan Australia.

I read and re read this thread and the negative comments, I find is very minor. ( like wrong spelling in their website.)

On the other hand, there is not much positive comments neither.

It is noticeable though that mortgage brokers comments were not complimentary. Is this because Loan Australia does not deal with mortgage brokers ?

Hiya

Dont care a hooooooooooot

See if it were all about price we would all be driving 3 cylinder cars...........

ta
rolf

Hi Rolf, but there are some people who are quite happy driving 3 cylinder cars. Some people just need a simple loan ( like a 3 cylinder car , as they may have a BMW as their primary car already).

Anyone please, who have dealt with Loan Australia, please share your experience. Good bad or otherwise. But mention something concrete. -- not just that they did not return a phone call or their website is boring , etc, etc.

Cheers Jocker10

 

[Rolf Latham]

Hiya Jocker

Loan Australia uses negative marketing which tends to result in negative market sentiment...................

Why our rates are so low?
You are probably wondering how we can we offer such a low home loan rate and still be in business, right?

Well, there are no secrets.

No Mortgage Brokers
First of all, we don't pay any fees to mortgage brokers. Do you know that most loans offered by major Australian Lenders and all banks include broker commission that can range from 0.25% to 2% of the loan amount?

Perhaps 3 questions one could ask are

Where is the money coming from ?
What are the fixed rates today ?
What are the deferred establishment fees ?

I go back to my earlier point, if it were all about price point those pesky normal banks that pay 2 % commission to a broker wouldnt be around would they ?

If u want an internet only lender why not look at something with a bit of history where u will get some borrower feedback, Homepath being one example.

ta
rolf

 

[BentRite]

Hi all

I was inspired to reply as I am in the final stages of signing up with LoanAustralia for their standard flexi rate homw loan.
(I note that some on this site discredit new posters - be that if it may, this is simply my story).

I was attracted to loanaustralia for its comparative low comparison rate and the multi features it offfers. Quitting during the 1st 5 years does come at a small cost however thhis didn't bother me as I plan on living in it for say 10 years.

The low costs/rates simply come as they are internet based and the reality of this is a comparatively lower level of service/customer interface than I might have expected from the larger lenders/banks. I have been frustrated on a few occasions with not being able to get quickish responses to my questions - email and on the phone. It seems the front line people are of little experience. That said, it has come together and their turn around of my full application, valuations and legal docs has been very timely and without a hitch.

The Lender listed on my loan agreement is Trust Company Fiduciary Services Ltd, managed by AAA Mortgage Finance Ltd.

I note that on the loan application are:
"....In this Notice, the "Lender" means each and every one of the following organisations (whether acting individually or together): LOANAUSTRALIA CORPORATION PTY LTD, Australian Mortgage Wholesalers Pty Ltd. AAA Mortgage Finance Limited, Permanent Trustee Company Limited; Perpetual Trustee Company Limited, Perpetual Trustees Victoria Limited ( and associated entities); Interstar Wholesale Finance Pty Ltd(and associated entities); Vero Lenders Mortgage Insurance Limited; PMI Mortgage Insurance Limited; GE Mortgage Insurance Company Pty. Ltd., Interstar Non-Conforming Finance Pty. Ltd.(and associated entities); J.P. Morgan Trust Australia Ltd ( and associated entities)...."

Fees and charges at:
http://www.loanaustralia.com.au/details_of_fees_and_charges.asp

I hope this helps. Happy hunting.

BentRite

 

[Jocker10]

Hi Rolf,

Would you say that was a negative marketing? I would have thought it was a valid point to explain why the their rates are lower than others.

With regards to the 3 questions you mentioned.

Where is the money coming from?

I never thought about this. But as a borrower , do I need to worry or to know where the money is coming from?

What are the fixed rates today ?

I think it is here http://www.loanaustralia.com.au/fixed_interest_rates.asp

What are the deferred establishment fees ?

How about this ?http://www.loanaustralia.com.au/details_of_fees_and_charges.asp

Am I missing something ?

I agree though that it would be nice to deal with lender with a bit of history but every lender has to start somewhere.

I am not here to promote Loan Australia. I am just curious.

Cheers Jocker10

 

[Rolf Latham]

Hiya

Looking ONLY at rates at the moment, seeing that this is their primary selling proposition.

Their pricing advantage is on the variable product...................

Say a 200 k loan, on a second tier bank at 7.55, the difference being .23 %, so on a 200 k lend youd save 460 bucks or 9 dollars a week. On the surface, looks OK............onto the other question

I dont know if source of funds is a problem............I know it can be, suppose it could be if your core funders have much exposure to the securitised funding issues in the US ?

In general this style of small funder will have less capacity to soak up an increase in cost of variable funds than the "banks".

The fixed rates are very average, indeed id say in the top 50 % of the rest of the market inlcuding premium producs with offset and/or redraw on fixed.

If you will stay variable and you arent worried by the LMI exposure even on loans of less than 80 % LVR then it may be a nice competitor to someone like Homepath........sort of..............

The come all sorts of other questions that are peripheral to the rate. What will you do when you move out of the place, do you know for sure you will sell etc etc

ta
rolf

PS All lenders have marketing and client acquisition costs ...........the primary difference seems to be in cost is the source of funds.

 

[Jocker10]

Hi BentRite,

Let me be the first to welcome you to Somersoft.

Your posting is excellent. Thanks for your story.

I do not know of anyone who discredit new posters, but if that is true do not worry about it.

Just benefit from the quality postings. And ignore those who discredit new posters. ( or old posters).

Keep us updated with your experience with Loan Australia.

Cheers Jocker10

 

[asdf]

Interested to find out if they MI'd irrespective of LVR. I tried to ask this but I don't think they understood what securitised loans meant. Just kept saying you only pay LMI if LVR is >80%.

 

[Jocker10]

It is embarrassing to admit but I do not know myself what is meant by "securitised loan".

May I know what it is? I did a search and it failed me again. My vague understanding is it benefits the lender more than the borrower. Please correct me.

As a borrower, do I have to worry about it?

Cheers , Jocker10

 

[ffc1883_1996]

Reasonably Satisfied Customer

So has anyone got a loan from this mob yet?

I have two loans with Loan Australia. I discovered them on RateCity and decided to give them a go because I was disappointed with my broker at the time and completely annoyed with a particular big4 bank (Australia's First Bank).

I suspect Loan Australia are funded by ANZ because an enquiry was logged by ANZ on my credit file (as well as by Loan Australia). Many of the loan facilities are supplied by ANZ (phone banking, ATM cards, etc).

I would characterise Loan Australia's service as ordinary. However, that's not to say that it's worse than any other bank or lender that I've dealt with over the years.

Loan Australia have very low variable interest rates, low fees and offer many features that other online (cheap) lenders don't. Furthermore, their serviceability criteria for full doc loans seem to be quite generous.

If you're considering using them, I would suggest that you only do so for refinancing and NOT for new property purchases. This is because I always felt that the deal could potentially fall over due to their lack of speed and knowledgeable staff - like what happened to MTo in another thread. Loan Australia operate from a small office in Sydney and the service that you receive depends very much on how busy they are on any given day. I found myself having to "drive" the process myself.

Our loans settled in September '07 and, since then, we've gone back to ask for more money (equity growth) and hope to have our credit limit variations completed shortly. So far so good.

 

[pi2012]

Hello All,

I used to post here a couple of years ago, but I've forgotten my username (or it was deleted) - so I'm not just a 1 post wonder!

Anyway, I'm looking for a good low rate mortgage with offset account access and the best I've found seems to be one from LoanAustralia: http://www.loanaustralia.com.au/flexi_plus_loan.asp

I just can't seem to find any feedback on them and was wondering if any members had any experience with them?

Thanks in advance.

Hi Vicked.
If you are still here, check this post: Watch out for ripper lenders!!! - Loan Australia -
http://www.somersoft.com/forums/showthread.php?t=37777

 

[ffc1883_1996]

New funding

I was under the impression that 70% nodoc loans didn’t exist anymore unless you’re prepared to pay >10% variable interest. But, perhaps I was wrong.

It appears that LoanAustralia have a new funder, GE, and offer a new product called FastDoc 70 at 9.15%.

Is this type of GE product available from other lenders as well?

 

[Qlds007]

I think you will find that product is actually a lodoc rather than nodoc product and yes similar products available.