Hi all,
Excuse me for asking silly questions but i’m a fish out of water and have just last week bought my first house to be used for residential purpose. I have been renting since i graduated 7 years ago.
Have anyone heard of or is using Choices Home Loan from Advantage Finance? I have the option of going to either Choice Home Loan from Advantage Finance (Var 6.67%) or Mortage Simplifier from ING Direct (var 6.90%). Both have similar loan features.
Though it’s obvious to go for the lower interest rate, i just wonder if one company is more stable than the other? Or am i just being paranoid? Pls advise. Thanks!
Regards,
EddieDon’t worry about stability. You have their money [biggrin]
If they do close doors then your loan should be sold to another lender and will continue under the loan conditions in the mortgage documents.
But don’t base your choice purely on cheapest rate – make sure you factor in all fees and any penalties for early repayment.
Most honeymoon rates revert to a higher rate for a set period – typically 4 years. Overall you pay considerably more than a basic variable rate. I rarely sell a honeymoon rate after showing the client the real cost.
There are major lenders offering similar rates to the ones you quoted. Some people prefer to be able to visit a branch rather than do it all by phone or internet. Though given you found this forum you are probably not frightened of doing your banking online [biggrin]
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for the advice, Mortgage Hunter!
Can someone tell me how long does it normally take to process a loan application? My settlement date is 28th September. How long more do i have to shop around for a home loan before i must sign up one (well in time for settlement)?
Different lenders have different times – sometimes they get backlogs. A decent broker should know who is slow.
But you have plenty of time. I wouldn’t like to see you leave your decision with less than four weeks left. But the longer you allow the easier it will be.
I have settled a loan in 12 days with a major lender but that was by calling in favours.
Rather than shop around why don’t you call a broker and ask him direct. He should have most of the mainstream lenders available along with a decent selection of minors.
Some brokers will boast that they have a large amount of lenders on their panel. But like in most areas 80% of our business goes to the same 20% of lenders. Why? The pessimist will say that those lenders pay the most to the broker. But the real truth is that there are usually clear leaders in all the different loan scenarios. You sound rate conscious so I know who I would be suggesting already . [blush2]
but don’t worry – you have plenty of time to make your decision.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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