Rate Busters? Looks like the cheapest?

ING were at 5.03% I think, before yesterday's rate rise. But I wouldn't use any of them, there's a bit to be said for having a reputable institution on your side, even if it's a second tier lender like AMP, Suncorp etc... Plus I know the ING rate wasn't available through a broker, only online. I presume the Ratebuster deal is the same? So you have to go through a dodgy bank and don't even have a broker to help point you in the right direction?

I often wonder why people (present company excluded of course!) who buy properties with the hope of 7-10% capital growth (that's the double in 7-10 years rate..) get so up tight about finding a rate that is .3% cheaper than the rest...

Maybe someone can set me straight.
 
A while ago, Homepath (CBA) were the cheapest rate, but the headaches were just not worth it most of the time. And if they didn't process the loan in time then there were a few not-so-nice words used!!

So cheap, but at what price? Still, check them out.....
JB
 
some of the cheaper rate lenders, (not all) don't allow you to pay weekly, which means you are paying much more interest over the course of the loan.

Think ING is one of them.

Kind Regards,

Alex Sperling
 
The ING rate was (and is) available to the MB's. The standard rate was 5.09% but for a one off fee of $699 (Smartpack) you can get a 0.06% discount. the rate is quite comptitive with no ongoing fees. Lending policies and a lack of offset account often dictate that the product doesn't suit.
As with most MB's on here, you'll find that a product that meets both your current and future needs should come 1st b4 rate.


Regards
Steve
 
perth Investor

You are right, for most people this is arranging the deck chairs on the titanic.

The point of the cheapest rate product is ?

Sorry to detract from the discussion but rate is one of the lower rated issues for most people that are looking for an investment proposition.

There is a case for cheapies, but usually not for an investor looking to leapfrog etc

ta
rolf
 
About 4 months ago I refinanced with Ratebusters.

The offer was 2.99% fixed for 1 year, then goes to the standard variable. I also have 100% offset - yes it's an offset, not a redraw. No establishment fees. This product will save me thousands of dollars, especially this year now rates are heading north.

Their funding is backed by First Mac.

I found them to be good service and so far am quite happy.

It pays for YOU to do your homework to find the right product for you. Don't just rely on the big banks or mortgage brokers.
 
MP, Interesting i thought i knew the details of the First Mac product being Brisbane based and to my knowledge the product never had a 100% offset account linked to it.

I guess like anything you have to read the small print.
 
I had a problem with a cheap lender. I went through PMG who are a mortgage manager. The loan was through mortgage ezy and I am pretty sure it is an ING wholesale loan.
Anyway when I went with them they were the cheapest in Australia (even cheaper than ratebusters). They have a high break cost even on the variable loan (so do ratebusters if I remember correctly).
Then they put up my rate. It is now above average. However, for new customers the rates are still cheap!!
Dirty dirty in my opinion. Can I get out easily with high break costs - No.
WOuld a larger lender with more customers and more reputation try to have lower rates for new customers after jacking its existing? - Probably not.

So when I go for another loan I will really think twice about going for the cheaper lender. Because I got screwed.

The other thing that PMG did was 2 days before my finance clause was due to expire they called me and upped the rate by .25. That is a tactic also. Their advertised rate never went up but I was stressed and went ahead anyway. Mortgage Ezy when I complained later reduced it by .25 because they agreed that wasnt fair. However my rate is still above average and higher than the advertised rates.
 
MP, Interesting i thought i knew the details of the First Mac product being Brisbane based and to my knowledge the product never had a 100% offset account linked to it.

I guess like anything you have to read the small print.

I did not go thru First Mac directly. I used Ratebusters who were using First Macs funds. The product Ratebusters offer is a 100% offset which is superior to a redraw. I made sure this was the case.

It pays to heavily do your homework, and negotiate, negotiate, negotiate hard. I even tried to negotiate 1.5-2 years at 2.99%. Now that would have been something!!!

I paid no est. fees and even got all the valuation fees ($660) back upon settlement.

I found that smaller lenders were willing to bend on terms and conditions to get business, whereas the big banks are not as prepared to.
 
I had a problem with a cheap lender. I went through PMG who are a mortgage manager. The loan was through mortgage ezy and I am pretty sure it is an ING wholesale loan.
Anyway when I went with them they were the cheapest in Australia (even cheaper than ratebusters). They have a high break cost even on the variable loan (so do ratebusters if I remember correctly).
Then they put up my rate. It is now above average. However, for new customers the rates are still cheap!!
Dirty dirty in my opinion. Can I get out easily with high break costs - No.
WOuld a larger lender with more customers and more reputation try to have lower rates for new customers after jacking its existing? - Probably not.

So when I go for another loan I will really think twice about going for the cheaper lender. Because I got screwed.

The other thing that PMG did was 2 days before my finance clause was due to expire they called me and upped the rate by .25. That is a tactic also. Their advertised rate never went up but I was stressed and went ahead anyway. Mortgage Ezy when I complained later reduced it by .25 because they agreed that wasnt fair. However my rate is still above average and higher than the advertised rates.

**This is a worry I do have. When my fixed rate expires will they heavily increase rates above the standard variable to make up? Time will tell.
 
Firstmac doesnt have any money of its own to lend per se

It comes from various areas, including the Australian Gov.

You are right............ always do your home work !

In your case, you will benefit greatly in the short term, either be good economic prediction or luck.

I dont know ur contract in detail, but you may get skinned in the middle term in the ongoing rate, or the exit cost., or both

Most of my investing clients in the past, with full doc 80 % lends or less wont use securitised funds as these usually have of the mortgage insurance exposure.

So it comes down to using what suits you for the right reasons
ta
rolf
 
I am also a Ratebusters customer for 2 yaers now. I am happy with them and their customer service is good. However, need to consider their costs if one want to settle within certain years.

About 4 months ago I refinanced with Ratebusters.

The offer was 2.99% fixed for 1 year, then goes to the standard variable. I also have 100% offset - yes it's an offset, not a redraw. No establishment fees. This product will save me thousands of dollars, especially this year now rates are heading north.

Their funding is backed by First Mac.

I found them to be good service and so far am quite happy.

It pays for YOU to do your homework to find the right product for you. Don't just rely on the big banks or mortgage brokers.
 
About 4 months ago I refinanced with Ratebusters.

The offer was 2.99% fixed for 1 year, then goes to the standard variable. I also have 100% offset - yes it's an offset, not a redraw. No establishment fees. This product will save me thousands of dollars, especially this year now rates are heading north.

Their funding is backed by First Mac.

I found them to be good service and so far am quite happy.

It pays for YOU to do your homework to find the right product for you. Don't just rely on the big banks or mortgage brokers.

Did you ever work out the comparison rate? Save thousands cvompared to who? :confused::confused:
 
Richard- that product was a 1 year fixed rate with 100% Offset and unlimited repayments, and reverted to their SVR after a year, which is lower than all the banks SVR's. People who took it at 2.99% will be pretty happy now I reckon. I like firstmacs products. They are all either LOC or offsets. I think they have fantastic stuff for investors. Im surprised you dont get behind them more.
 
It is not a matter of not getting behind them more as i have known Kim Cannon for nearly 15 years back in his Nationale days but still disgaree it is an offset account in the true sense of the world.
 
The point of the cheapest rate product is ?

Sorry to detract from the discussion but rate is one of the lower rated issues for most people that are looking for an investment proposition.

There is a case for cheapies, but usually not for an investor looking to leapfrog etc
Such good advice, it bears repeating. (Though we seem to be repeating this a lot, don't we? ;))

I think that people value dollars variably. A dollar of opportunity cost seems to be only worth about 5c (or even less) to most people. :)confused:)

A dollar received from the Government (eg via pension) seems to be worth about $2-3 relative to $1 that you earn yourself.

A dollar saved on petrol or interest rates seems to be worth about $3.50-4. :D

I try and work on the equation $1=$1=$1
 
lower than all the banks SVR's. People who took it at 2.99% will be pretty happy now I reckon. .[/QUOTE

What a nice feeling that marketing gives :).

Many many lenders use this argument. In most cases it doesnt hold water, since I dont know many people with a moderate mortgage that are paying bank SVRs..................

While FM pays nice commissions, in general its products were not suited to the average growing investor, at least not historically. Like all securitised products LMI exposure at 80 % LVR meant that youd be burning the clients LMI options for later use when they really needed it. And then there is those luvely Defs as well.

ta
rol
 
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