Hi All,
Just wondering the people's and brokers' opinions on Firstmac.
I have done some looking around and their product looks ok. Please note, I am not only going for the cheapest rate.
They are doing 4.99% variable, with offset
Approx $600 upfront fee.
No monthly/annual fee for this product.
I'm looking for an offset refinance for my IP.
I am currently with ING mortgage simplifier.
I think the best product is different for everyone as people are in different situations. My situation:
Family, with 1 child (we are both early 30s).
PPOR paid off.
Rental income covers interest payments.
We can probably pay $500-$1000 per week above min repayments.
Aim: Pump all those extra funds into the offset account to reduce net interest, but be able to withdraw it later on to renovate/upgrade/buy new PPOR without affecting tax benefits.
Thanks
Variable rates are subject to change and I think this is a bit gimmicky. There is a bit of debate whether their product is a true offset and I haven't seen anyone at Firstmac confirm this. In their defence historically they have had quite good rates – its just that their conservative policy let's them down.
What is the loan amount and what are you looking to do with the IP in the future?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Kim Cannon the MD has been around for 20 years and i know him well.
First Mac (or whatever they are calling themselves this week) have a suido offset account and agree with Shahin that seems to be some element of doubt whether their offset is a true offset as we know it.
Your current loan with ING doesn't have an offset linked to it so if you have been already been paying down the loan and redrawing you may have potentially already contaminated the interest.
Are you happy with a variable rate or would you look at a fixed rate with offset ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thank you both Shahin and Richard.
I think I will forget Firstmac as I need "true offset".
Loan amount is $285k. Value of property approx $500k.
We have just finished paying off our PPOR so I am just putting my extra funds in an online savings account till I set up an offset loan with a bank, as Richard said, I do not want to contaminate the interest.
Thanks.
ING's offset works well – I use one personally.
Give them a buzz and ask about the option of switching to a product with a linked offset.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Agree nothing wrong with the Orange product.
As with many lenders the amount of your loan will determine how competitive their rate is compared to others.
Get your Broker to double check first before you jump ship.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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