Westpac std variable discount >1.5 mil

[Rolf Latham]

So after discussing with my broker I'm considering the below offer.
I saw Advantedge has been discussed in previous threads.
My broker describes them as small enough to be easy to deal with, with the backing of one of the big 4. I don't need any bells and whistles so might be ok.

Advantedge 90% loan
loan 1 50% 2 year fixed at 4.89%
loan 2 50% variable at 5.48%
Both loans say $330 annual fee.
LMI works out to be 18K (WBC was 19K)

My wife already has a loan with Homeside so have to make sure that the mortgage insurer doesn't consider our loans combined both being NAB pushing over 1Mil?
And wondering what they will be like in future if/when I want to draw out more money as that was the point of not going with WBC and being over 1 Mil?

Any thoughts on the above offer?

do u need an offset now or in the future ?

a 90 % lend on this size is like a marriage due to the lmi premium,so u may need a little more pre marriage counselling

Homeside DUA is PER transaction, not aggregate like for eg CBA, but the aggegate riskmay not be good for you

whats wrong with Commor say , NABdirect ?

ta
rold

 

[dredfern]

I did notice that they don't have a DUA so was wondering whether that just leaves me in the same boat as being over 1 Mil with WBC in future, or whether it is still much easier being a smaller amount?

eg, applying for future funds when,
a) 1.5 Mil with WBC when over 1 Mil DUA or
b) 750K with Advantedge with no DUA

Which is better and more likely to be approved?

I have an offset with westpac which I can offset against the existing 60K equity loan used towards the new PPOR so don't really need a new one.

Haven't looked at comm or nab direct yet, would it maybe be better to go with a major like them due to having a DUA?

 

[Aaron_C]

Which is better and more likely to be approved?

Honestly this is a question for your broker and his/her advice is what you pay them for...we can't really say because we don't have all the information.

 

[Rolf Latham]

Honestly this is a question for your broker and his/her advice is what you pay them for...we can't really say because we don't have all the information.

and even if we did have all the info, you will still get varied answers to the question.

ta

rolf

 

[Rolf Latham]

Which is better and more likely to be approved?

Geeze im glad you arent my client, and I dont mean this in a negative way towards you.

If my client was trawling web forums of confirmation of my recommendations I reckon Id give up my broker shingle.

There is a clear lack of trust here.............something you need to have a good think about, thats not necc anything to do with you or your broker in isolation but something is not working in the relationship ?

ta
rolf

 

[Brady]

I did notice that they don't have a DUA so was wondering whether that just leaves me in the same boat as being over 1 Mil with WBC in future, or whether it is still much easier being a smaller amount?

eg, applying for future funds when,
a) 1.5 Mil with WBC when over 1 Mil DUA or
b) 750K with Advantedge with no DUA

Which is better and more likely to be approved?

I have an offset with westpac which I can offset against the existing 60K equity loan used towards the new PPOR so don't really need a new one.

Haven't looked at comm or nab direct yet, would it maybe be better to go with a major like them due to having a DUA?

Think you just answered the question yourself.

You thought to look elsewhere to get away from no DUA, but looked in a place with no DUA. Really defeated the purpose...

 

[Rolf Latham]

Think you just answered the question yourself.

You thought to look elsewhere to get away from no DUA, but looked in a place with no DUA. Really defeated the purpose...

good observation...........but to a large extent, possibly thats the credit advisers lack of discernement I expect ?

ta
rolf

 

[dredfern]

Yep now i'm wondering whether I should be staying away from lenders with no DUA altogether or not. I guess there is always a point with any lender that I will hit DUA issues it's just a matter of when.

I'm thinking that at least by 'not' going with WBC now I can to back to them later if I needed to get funds out as I will be under their DUA! Right?

 

[Brady]

good observation...........but to a large extent, possibly thats the credit advisers lack of discernement I expect ?

ta
rolf

Assuming the same, but in the brokers defence...

Did you tell him why you wanted to look at other financers? Did you mention the DUA.

 

[Rolf Latham]

Assuming the same, but in the brokers defence...

Did you tell him why you wanted to look at other financers? Did you mention the DUA.

ummmmmmmmm.

thats no defence : )

Something I lent from many life mentors was this

Rule number one in direct sales/service industries ...........

Learn from your client what your client really NEEDS, not what THEY think they need, educate them about it and get it for them, that is your duty.

Sometimes you might lose the sale because the client doesnt really want a trusted and experienced adviser, but a door mat, and that client is better left to work with a transactional "door mat"

Harsh, yep for sure , but I didnt make the rules, I have just been very lucky to have been mentored by someone that had the patience to teach me.


ta
rolf

 

[dredfern]

Geeze im glad you arent my client, and I dont mean this in a negative way towards you.

If my client was trawling web forums of confirmation of my recommendations I reckon Id give up my broker shingle.

There is a clear lack of trust here.............something you need to have a good think about, thats not necc anything to do with you or your broker in isolation but something is not working in the relationship ?

ta
rolf

Just trying to take control of the destiny of my own finances rolf and learning something in the process! Lot's of very smart and helpful people on here such as yourself offering free and differing advice I'd be stupid not to listen to!

 

[Brady]

ummmmmmmmm.

thats no defence : )

Something I lent from many life mentors was this

Rule number one in direct sales/service industries ...........

Learn from your client what your client really NEEDS, not what THEY think they need, educate them about it and get it for them, that is your duty.

Sometimes you might lose the sale because the client doesnt really want a trusted and experienced adviser, but a door mat, and that client is better left to work with a transactional "door mat"

Harsh, yep for sure , but I didnt make the rules, I have just been very lucky to have been mentored by someone that had the patience to teach me.


ta
rolf

Not saying the broker shouldn't have picked up on it, really should have from the start.

Even more surprised that if client comes back saying I want to move the app from x bank and look at y bank that they dont find out why so the best product can be offered.

In this case I think your broker has missed the mark.

Was stating that some better communication to the broker could have resulted in him suggesting a more suitable financer.

 

[Rolf Latham]

Not saying the broker shouldn't have picked up on it, really should have from the start.

Even more surprised that if client comes back saying I want to move the app from x bank and look at y bank that they dont find out why so the best product can be offered.

In this case I think your broker has missed the mark.

Was stating that some better communication to the broker could have resulted in him suggesting a more suitable financer.

dont disagree, its a 2way street, because in the end, the borrower needs to live and work with the structure, the adviser can and will move on

ta
rolf

 

[Aaron_C]

Was stating that some better communication to the broker could have resulted in him suggesting a more suitable financer.

I think that is true but perhaps the OP has already started to second guess the recommendations. Which is fine since you have to understand what/why a particular lender is recommended but it does get counter-productive after a while since it is the broker's job to work that out without the client having to worry about it.