Hi All,
I am thinking of using One Direct for my investment unit as they appear to have very competitive rates.
I would like to know if anyone has dealt with them and how they found this experience ?
I have an investment loan with one direct.
I had a tight deadline and they managed to finalise everything very quickly.
Also, I was assigned a primary contact so that person got to know my situation fairly well
They are based in Melbourne though so all documents will need to be sent/faxed if you are interstate.
Ecl
Hate to pick holes in your pat on the back for Anz wholesale but Mortgage Documents cannot be faxed to the borrower.
On a separate note one client rang me yesterday to advise me that One Direct still hadnt decided as to whether they would be reducing their interest rates after the 100 bhps reduction from the RBA.
Doesnt sound good.
Richard Taylor | Australia's leading private lender
Thanks for that feedback Ecl.
Qlds007.. I checked One direct's rate on monday the 13/10/08 and It had been dropped by 0.80% to 7.55% variable with no application fees ! . Sounds good to me.
I think you are wrong in saying that documents cannot be faxed as I am about to fax back the loan application form. However the Identification form must be posted.
Perhaps you are taking the side of non-bank lenders who have seen their competitive edge lost in the credit crissis. Non-bank lenders may prosper again after the 10bil injection into the banking system frees up the credit markets but for now I will go with whoever gives me a beter deal.
My current non-bank lender can't even tell me what rate they have or where they are getting their money from.
Alacrity
I promise you it is illegal to fax Mortgage Documents and this certainly will not be accepted by the Titles Office in each State.
I am of course referring to the legal documentation that accompanies the Letter of Offer and is what ecl referred to in his post above.
Any supporting mortgage documentation can of course be faxed but that is not the point.
Anz base rate is 7.85% with no application / valuation or bank legal for FHB so i would hardly call that a competitive advantage.
Secondly One Direct are funded by a Bank lender in Anz however the big difference is how they attract their funds and the cost to do so. I always ask myself if they were so competitive why do the wholesale lending offshoots of the Big 4 Banks only write less than 1% of the overall loan business written.
It cant be that borrowers havent heard of them…..no it is merely that most borrowers once they become sophisticated realise that there is more to a loan than the bottom line interest rate.
Richard Taylor | Australia's leading private lender
My solicitor faxed my signed purchase contract and application documents to One Direct.
Originals were then sent afterwards.
Just saying as it is.ecl sorry dont want to repeat myself I am referring to the MORTGAGE DOCUMENTS.
No lender will fax these to you as it is illegal to lodge a faxed copy of a Mortgage Document.
Did One Direct announce a further 0.25% reduction in their interest rate this afternoon as did their big brother Anz Bank ?
Richard Taylor | Australia's leading private lender
Happy to comment on my experience with One Direct.
I have done loans (ie borrowed from personally) with ANZ, (whom own one direct – clearly stated on their docs) NAB, CBA, Wizard, and Westpac, and all bias aside, one direct was the easiest and quickest experiece I have had. At trust me, I work for one of the above mentioned lenders, and embarrasing as it is to say so – I could not have done it any better myself.
The solicitor I used also commented that it was the first time a lender had ever shown the initiative to call him back with a suggestion on how to overecome a time specific obstacle. (We too had a tight deadline on our deal)
The only other observations I will make are –
1) The paperwork is a bit more involved than if you went into your local bank (bank, not broker – ) ID requirements were a bit more involved, whereas if you are known at your local bank they can process a loan on the spot rather than over the internet or a third party, such as a broker.
2) Rate is so much cheaper, and has the security of being a 'bank'. I was wondering how they would put their rates down, and interestingly when the bank last passed on the full 25 basis point decrease, one direct passed on 26 points. (no idea why)I note as of today, ANZ's 'discouted' loan product is 7.87, the one direct rate is 7.55 – a full 32 basis points less, and no 'app fee'.
3) I get a pretty good staff discount where I work, but still not as good as the one direct variable rate. HOWEVER, for anyone who wants to visit a branch, or shake somones hand, or if you have not much of an idea of what you wnat or need, it would be best to look elswhere.
4) No broker whould ever recommend one direct, as they are not on any 'lending panel', thus no commission of course.
You are getting a cheaper rate, by cutting out the middle man/men – and if everyone went to lenders like this, I guess I would be out of a job……..
5) I notice there is not as much flexibility as with some banks. For example, they assessed my rental property income at 75% (I use 80% on loans I do) and assessed credit card limits @ 3% rather than 2.5% like some lenders (which is probably more sensible truth be known anyway) so if on a tight budget, or getting close to your borrowign limits, you will find the amount you could borrow from them, may not be as much as elsewhere.I dealt wih them via email mostly once I had established contact, and along with express post could not have asked for more.
Factual info, that I hope helps.
Cheers
Thanks for your comments v8ghia. I was kind of hoping that one direct would also drop another .20% but as you state they are still cheaper than ANZ and most others. I have found found that my one direct lender is hard to get on the phone but email works fine. This could be because they are trying to save time and money and pass these savings on to us.
7.55% is very competitive in fact the lowest variable rate available in the market.
It is good for 1st home buyer or investment loan with simple structure.
I did ring them regarding investment loan under DFT… and they said that they need at least 2 years tax return before they can open an account.
Nevertheless, they have superb features with access through ATM/eftpos But unfortunately NO offset account (major set back)
Rated ***** by Cannex, Smart investor, money magazine etc… Can't ask for more.
I am not sure whether you could get cheaper from ANZ Professional package with the latest 0.25% disc??? Can anyone elaborate on that>?
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