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With most banks, LMI (mortgage insurance) is capitalised on top of your loan, so if you're strap for cash, it's basically added on to your loan
No probs – in terms of one direct, it is online and over the phone. It is good because it is ANZ's subsidiary, so in essence you are dealing with a major bank but just dont have access to ANZ's branches and other financial products
Hard to say if rates will drop in the next 3 years. Just a thought, what will happen to Australia's economy once the 2008 Olympics in China is finished and demand slows. Australia is heavily dependent on China
In relation to your second questions, i tend to agree with you
Hi
Firstly, If i were you, I would not place all my trust in brokers because they are not entirely independent. Their recommendation is relationship driven and they often only recommend 3 to 5 lenders. Put yourself in a broker's shoes, do you want to know all the products from 50 lenders?
Secondly, if you are going for price alone, one direct has the best rate for smaller loan sizes e.g. for <$500k 0.86% off variable rates and no annual fees. The catch is no access to branches, which may or may not be important to you. For bigger loans e.g. $1m+, some of the major banks are discounting up to 1% off the standard variable rate
Thridly, there is speculation of an interest rate rise in July as housing activity has been strong in the last 2 months. This is evident in the rise of the 30 day bank bill rate (i.e. banks's cost of funding) in the last few weeks. Hence, may be worthwhile fixing, but cant guarantee you the rate movements out beyond the next few months as anything could happen to the economy
