Hey fellas, this is my first post, and before i ask my question id like to admit my fiance and I have learnt alot from this forum. One question on my mind though, a couple of months ago, money magazine rated 'Ratebusters' as having the best rate for their 2 year fixed loan. However come months later, their rates have shot up dramatically. I'm wondering how safe is it to go with a non bank lender as they tend to have a reputation of increasing their rates over time (more rapidly then banks)
or should i go wth a slighly higher rate and stick to a big named bank like ANZ or st George or something with the peace of mind that the rates wont shoot up?
also what rates are people getting on here, what should one consider a good 'real rate' now? im finding 8.47% to be the best so far?
Good question. Opinions change as does the market/economy. A year ago I would have said either, grab the best rate. Six mths ago, definately I would have given prefernece to banks (ie the major's not someone with 'bank' in their name)
Now, the only reason I would encourage anyone to go 'non bank' would be if they have no choice, or need a no doc loan (which may be a better idea not to get any loan…….)
All the banks have basic or intro loans under 8%, and a whisker over 8 % for fixed – less for intro deals. Fixed rates are creeping up, which says to me non one is expecting a rate decrease anytime soon………If you are on a regular income, I cannot see why anyone would go elsewhere atm. Hate your local bank and think their service sucks? Use a local broker. All the best. IMHO of course.Hi hoping,
I've just joined this forum recently too – posted 2 questions.
My girlfriend and I have been shopping around for a mortgage recently as well.We are both in the UK working as IT contractors, so it is not the easiest to prove income to lenders.
After several enquiries through various mortgage brokers we have decided to go with a low doc loan with ANZ (we both have existing mortgages with them) with and offset feature and break-free package. The breakfree package costs about $300 a year and gets you 0.7% or 0.8% off the standard variable rate (depending on how much you want to borrow), as well as waiving some loan fees. This will bring your rate down from 8.47 to 7.77%.If this sounds like I'm pushing ANZ, I'm not.
I'm just sharing my experience.Good luck!
ANZ Breakfree is a good product and there are similar products with other lenders.
Definately use a good broker as he will know each lender and also how they are travelling at that time with approvals and processing times. Sometimes banks fall behind others causing delays.
Cheers,
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