Banker wrote:
How much is the security worth and how much do you want to borrow?

Property purchased for $540k.  Deposit of $220k.  Loan of $350k to cover all stamp duty and related costs. 

Terryw wrote:
Just ask all those who took out loans with RAMS or GE. I think they assumed something similar.

Am I wrong in believing the reason they are currently in a bad position is that the exit fees on those loans are outlandishly expensive? Won't this scenario be removed with the legislation being brought in on July 1?  I'm trying to read…[Read more]

Banker wrote:
Gary78, I see where you are coming from. Is the loan for invesment e.g. interest only? Let's run some calcs at 5 years int only, noting most people refinance or restructure to buy more property. If you go 5 yrs IO and include all establishment, Val and exit fees it will be a more realistic comparrison. Banker

Banker,This is my…[Read more]

Terryw wrote:
It could be a significant savings, but you are assuming:- rates remain the same- your loan runs full termWhat if you:- want an offset account- want an increase- want to fix down the track- exit after x years- refinance after x years because they cannot lend you any more

I assume (rightly or wrongly) that the only way State…[Read more]

So the fact that they recieve their funds via Advantedge which is a NAB owned business doesn't ensure any further security?   I understand the fees involved in changing lenders within the first 5 years with State Custodians however I believe that the legislation being brought in on July 1 will reduce this exposure.For me it comes down to a $ v…[Read more]

Banker wrote:
For those who don't know the structure of a mortgage manager: A mortgage broker can go to a lender like advantage, firstmac, GE etc and sign a mortgage management agreement. These are often referred to as white label loans. The funds come from the lender on a wholesale basis. When the lender sends statements they go out on the…[Read more]

Bazikki wrote:
Hi Gary, just wondered how you got on with your mortgage search and who you decided to go with in the end?We're in a similar position to you…looking to leave Westpac…after the best interest rate possible…and also considering Pacific Mortgage Group given our frustration with the big 4 banks.Just trying to get more info as to…[Read more]

I found out through a bit more research that State Custodians get their funding via Challange Mortgages who recently were bought out by NAB and renamed to AdvantEdge.  $120bn Loan Book according to the online info.  Sounds pretty stable to me.

Cheers Ryan for the reply.  I've got a mortage broker coming around on Tuesday evening and i'll see what he can offer.

Richard – Thanks for your reply.  Although I know this is a property investment forum, this home loan will not be for an investment, but will be my primary residence.  My search for any forum discussing home loan options hasn't come up with any other alternatives so I posted here.As a 4th Tier lender, aren't they sourcing their finance from the sa…[Read more]

god_of_money – you state that NAB/CBA offer true offset acount where as PMG does not.  If I deposit my salary into the mortgage account with PMG and whilst it is in there, it acts as an offset against interest charged, isn't that the same thing as having it in a separate account and being offset? Am I missing how the calculations are done?  In r…[Read more]

Banker – I've looked at the exit fees for both.  Pacific Mortgage Group advised their exit fee is 1 months payment (approx $2200) and State Custodians is a sliding fee (1% of loan in first 3 years, 0.8% of loan in 4th year, and 0.6% in the 5th year).  In saying that, I am a little concerned about what happened with GE Money and RAMs and how any s…[Read more]