Forum Replies Created
- whoper123 wrote:I was seriously looking to sign up with ratebusters a few years ago; lucky I didn't.
Because much later I found out on other forums on how rateBusters adjust their variable rate loans.It seems, according to forum posts, the rate you see on their web site are for new customers only. Once you sign up, you are no longer new customer. So for the first few months, you pay the same rate as 'new customer'. Then after a while, you will be paying slightly higher rate than 'new customer'. As time goes on, you will be paying a lot higher than the 'new customer' rate as shown on their web site.
Just to be clear, the rate rise are nothing to do with reserve bank rate raise. For example, when reserve bank raise by 0.25%, the 'new customer' rate goes up by 0.25%, and the 'old customer' also goes up by 0.25%. But once in a while, 'old customer' rate will go up while the 'new customer' stay the same.
Though I think they may time the increase to coincide with reserve bank raise, so something like 0.25% for new, and 0.35% for old.
Another lender, 'myRate' also do this. You can google it, I found a lot of people complaining on the web.
… maybe safer with big 4. Though I think rate buster and myRate are still cheaper…This guy speaks the truth. I would never recommend Ratebusters to anyone. I am currently paying a higher rate than what is listed on there web page and there is nothing I can do about it, 4 years into the loan and it will still cost my 3k+ in break costs if I want to refinance.
My rates seemed great when I signed up but consistently they went up higher the big 4 banks rates when the RBA raised rates and dropped less the the Big 4 when the RBA lowered rates. I remember my rates going up by .5% or .6% after a .25% RBA rise, and the Big 4 banks only raised there rates by .3%
Google "Ratebusters" there are a few threads or the first 1 or 2 pages with negative experiences about them.
I would stay away from RateBusters.
There interest rate may look good now but that’s because they keep releasing new loan products with competitive rates and then raise the rates of there older load products with big rate hikes well over the Reserve Bank and the Big 4 Banks. Keep attracting new customers while existing customers pay extra and get locked in because of the huge break costs within the first 5 years.
When I first took out my load 3 years ago, my rate was .9% below the standard variable rate of the big 4, now its higher than the even the standard variable rates of the big 4 without even factoring the .5% -.7% discount you can always get on your rate with the big 4 banks.
My rate is currently 6.82% and they don’t even advertise a rate that high on there web site.
After being being with them for over 3 years I’m now looking at refinancing with someone else even tho I’m going to be hit with over $3000 in break costs.
