best mortgage

Hi Cathy,
I am currently refinancing with a company with property investing experience. The CEO has 40 investment properties and gives sound inteligent advice as well as providing finance all over Australia.
Deatils are:
Ranges Finance
Alan Lee (CEO)
42c Aitken St Gisbourne 3437 vic
PH: 1300 785 281
http://www.rangeshomeloans.com.au

Regards
Frank

Hi Cathy

There is no right or wrong answer. What might be what you are looking for in a home loan maybe totally different to what another clients requires.

Each loan product has certain features whether it be cost, interest rate, on going fees, features within the product, the variables go on and on.

All i would say any lender that is an origiantor or securitises their loan book such as the example given will be mortgage insuring their entire portfolio irrespective of the loan to value ratio. This could cause you problems down the track so beware.

List all the features you think you require and then get a mortgage broker to give you an idea of what is out there. Its a free service so you have nothing loose.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.

Wow Frank – you didn’t even attempt to answer the question – just plugged your mate.

Keep it up and it will start to look like spamming.

Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Freeman

Are you serious when you state that you be worried if the lender did not have insurance.

The Company you are referrring to securitises all of its loans and is merely a manager or orginator of those funds.

A lender can raise funds by either receiving retail deposits such as the major banks or it can package up its loans and sell them off to a Super fund etc who then becomes the owner of the debt.

The reason why the loans are insured is not for your or the managers benefit is is a requirement of the end buyer of the note.

The loan is insured if you borrow 30% or 95% it does not matter.

The BIG Downside for an investor is that there is a limit to how much one mortgage insurer whats to carry in the way of debt. You may find that you have the serviceability to keep buying more properties but the Mortgage Insurer will not provide anymore cover.

Do you think that CBA / NAB / Anz / Wpac insure all of the loans of course they dont.

As i say your mate maybe paying you a referral fee for every deal you pass onto him but please be accurate when you are marketing his services to other forum members.

Securitised loans have a place in the market but are certainly not recommended by most Professional MB’s who have their clients interest at heart.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.

dacium

Perhaps all the other lenders should look at closing down if ratebusters is going to take the lending market by storm.

Wonder if the Big 4 realise they might be out of business with all of these fancy features they offer.

Seriously mate think before you post like that.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.

If you are only interested in buying one or two properties, and have a clean record, good employment etc then getting the cheapest rate may be the best option.

But if you are planning on buying a few more properties, then avoiding the securitised lenders will help later on.

And nobody gets the standard rates anymore. Most, if not all, of hte major banks offer professional packages with discounts of around 0.70% for loans over $250,000. This will bring the rate down to 7.37% which is still higher than the cheaper no frills lenders, but you can get some more features and flexibility which may help you end up borrowing more in the long run.

Depends on what you are after I guess.

Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.

Your serve Dacium!

I am not surprised by the responses here at all as I have heard this all before.

I used to sell ANZ loans, we were taught customer service and low fees are what people want, not low rates. Every time we were asked to match rates we were told to show all the features we had etc. and how easy it was to get out of the loan and trade later one etc. etc. We gave ‘professional’ discounts that really get adjusted back to the standard variable if you read the fine print after 4 RBA rate adjustments.

Yes the rate buster fees are high. But do any of you actually do the math? If you are going to hold the property for at least 5 years and avoid the exit fee than this loan is defaintly chaaper than the big banks. I can see how some investors might not be suitable for them, but if you are in any way looking at paying down a house the interest rate is the only thing you should be looking at.

6.92% interest:
$300k @ 30 Years: $1980/month, $712,800, 137.6% Interest

7.36% interest:
$300k @ 30 Years: $2,064/month, $743,040, 147.7% Interest

8.11% interest:
$300k @ 30 Years: $2,215/month, $797,400, 165.8% Interest

So thats $41k saved if you get the pro. discount applied for all 30 years, and $80k saved if you don’t.

The weekly saving is $50 per week from 8.11 or $20 per week from 7.3The fees are about $3k more. So you only need to hold the loan for 1 year (8.11%) or 2.5ish years (7.3%) for it to have been the cheaper option.

This is the exact reason why rate busters will never explode and send the banks running. People see $5k in fees and crap their pants. Seriosuly the ratebusters even give you an atm card that is free to use at any atm and unlimited eftops, all tied to an offset account. Yet people won’t take it because they don’t think 0.5% PA makes a difference, when it makes a huge difference.

Just out of curiousity how long have you worked for them ?

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.

Ahh….controversy! Just add my 14cents worth in point form…
– Remember – Check the comparison rate! Introductory offers that capitalise interest and loans with high monthly fees will have higher ‘true rates’. – Paying for features such as an offset account or free redraw is useless if you are not going to use that feature, as it will cost you more than a low interest rate on a no frills loan. – Ongoing charges to ‘split’ , switch or fix loans….check them out too! – A loan with a higher interest rate can save you plenty over a basic loan with lower interest rate if some of the features are used correctly, such as an offset account or for a PPOR better still, direct salary crediting. – The choice of loans and cost incurred from most lenders are nearly always better than ‘the banks’ if under the $250k mark, once over that, with so called ‘pro-packages’ etc where an annual fee is paid in exchange for a discounted interest rate and no other fees and charges it becomes a much more level playing field. – And finally…..compare a basic loan, a full featured loan, a line of credit, and a construction loan from a variety of lenders, and I can guarantee you will not find a lender that offers the ‘best’ in every one of these areas. ‘Best’ is purely subjective to your individual requirements! [strum]