Hi has anyone dealt with this company they say .92% off the variable rate what is the catch? is it worth refinancing to a lower rate? Currently with RAMS at the moment and the rates are high what should i do.
Xinc is a mortgage group similar to Aussie Home Loans and actually branched away from them
the product is a professional pack loan with annual fee which provides a discount based on the loan size +$300k I understand the product the discount relates to is their own branded and mortgage managed product
This product will have exit penalties like RAMS so I would check out the cost to leave vs the saving on rate
CraigHow much is your loan amount? i assume you are with rams for a reason? They are (sorry were) very flexible with Lo-doc loans, and first home owner loans. other than the 'interest saver' or 'super interest saver' rams loan product, you will have up to a 2% charge to leave them within the first 3 years. Do the sums, and have a good long think – you may be better off staying with rams. For example, a $250k loan, if you could find one half a percnet (ie .5%) cheaper, would save you $1250 per year in interest. It would cost you $5000 to leave plus fees and discharge etc! All the best, and don't rush into the 'panic' that has gripped a lot of people.
Rams 90% Lodoc I would still classify as flexible and competitive.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Rams 90% Lodoc I would still classify as flexible and competitive.I agree with Richard. RAMS 90% lo doc has an interest rate of only 7.95%. Very flexibe and competitive. My son is applying for a 90% RAMS loan at the moment and ,so far, is very impressed with the product and service. Exit fees are under $500. What is X Inc Mortgage Company's rate once the discount is taken off.
I agree with both above comments – when saying 'were' I was referring to the 'old rams' (now defunct as rhg, and a seperate entity to the reborn rams under westpac ownership) which I imagine is where the current loan would be with, thus the stiff exit penalty of around 2% unless the couple of special loans mentioned.
There is plenty of choice around at the moment that's for sure. Good there are some 'easy' lodocs around still too…..
… its advertising lingo and playing games with your head. Terminology is the quickest way to stuff with a borrowers head.
Brokers play it all the time and so do the banks…. what is the rate they are quoting under… maybe ASIC needs to talk with this mob about ethical advertising under the ASIC act.
I get tired of these w@nkers…
Wow what is this guy on.
Richard Taylor | Australia's leading private lender
Not sure Richard – I was feeling maybe I missed out on some important revelation, but it sounds more like a conspiracy theory – or drugs!
Back to the original question. X Inc i believe are a securitised lender, they use products equivalent to Challenger and Firstmac. The problem with these Non Bank lenders are the break fee's. Generally they are applicable in the first 5 years of a loan, if it is to be refinanced. And they can have astronomical break fees up to 2.5 times your monthly payment.
The other thing to take into consideration is the .92% discount off the standard bank variable rate loan. In the past the banks variable rate loan's have been equivalent. But in recent times they have all past on different loadings to the standard RBA's .25%. So this leaves the question .92% discount off who's variable rate?
the best variable rate loan right now is CBA and Westpac, both at 8.97% p.a. So theoretically they should be able to offer you 8.05% p.a.
There are genuine discounts out there with out the hidden break cost's, you just need to know where to look, and with a more recognised lender. A .85% discount off the best standard bank variable is very realistic. Not only this you'll get professional post settlement service, you'll get a 100% offset account with easy access to your funds with no on going fees, and very minimal set up costs; and you'll avoid the hefty break fee's if you decide to discharge your mortgage within 5 years.
A good Broker will know where to direct you.
all the best.
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