I'm about to get some pre approval, and at this stage I'm going through NAB for my first home and hopefully will become my investment property later on. Can you guys tell me which lender offer the best value? Mind you I only earn 55k a year.
Get rich
Hate to say you will certainly not find our mates at the NAB as competitive as many others especially if you intend to eventually rent the property out down the track.
Due to the banks size interest rate negotiation is not high on the agenda and the rijid way they do things is slightly behind the 8 ball.
I certainly use the bank for deals but there are other reasons.
You could do better.
Richard Taylor | Australia's leading private lender
I have an appointment with a consultant from mortgage choice on Wednesday but i don't know if they will just point me to some bank that they may have a secret hand shake with already.
As for other banks who would you guys recommend?
Get Rich
It would depend on a lot of factors however ideally a lender that helps you grow and grows with you.
Sausage factories like Mortgage Choice merely place loans with whoever they deem fit.
Most of the consultants have limited knowledge on structures on how to get the most out of a loan and take the easy route.
Just make sure they dont recommend a non traditional securitised lender who pays them a nice fat commission.
Richard Taylor | Australia's leading private lender
Ok I've just browsed thorough some comparison rates and I think ANZ might be a better choice in terms of big banks
GR
One of my favoured lenders and a good suggestion.
Their servicing model is however not one of the best and they charge a monthly fee for the 100% offset account.
Richard Taylor | Australia's leading private lender
Hi Get Rich,
Why not just go through Richard and save yourself the headache yourself.
He maybe able to help you with how you structure the loan so ease for
future investing,if thats what you want to do.You should be looking to getting it right from day 1.
You would be lucky to get a mortgage choice rep with an investment property.
I know who i'd rather get to do my loans.Thanks
Too bad Richard is not in Melbourne.
Anyway I just finished talking to the consultant and she showed me some packages from ING, which seems to be a lot cheaper than most other banks and not much annual fees.
Have you guys used ING before?
Steve appreciate the referral.
Yes ING have a home in the market place but i wouldnt use them for a standard client.
Did he tell you they also were the first lender to announce an increase in their home loan rates at 3.00pm yesterday afternoon within 30 minutes of the RBA decision.
Richard Taylor | Australia's leading private lender
Also be careful if you are buying in a trust
I had to teach them how a hybrid trust worked and your morgage choice guy is just not going to do that for you.
Also if you do relook at larger banks, be careful of Professional Pack Fees. The real interest rate can be quite high if loan value is low.
Hi G'Rich
I would not recommend ANZ either. I have 3 loans with them and fees on offset accounts is just one of the draw backs, poor service being another . Prefer client pack they offer is ok but you end up paying $340 per year for little gain. If I did not have 2 loans locked into a fixed interest rate, I would be shopping around for a better deal.
Borrowing money for such an important purchase needs a lot of thought and consideration, remember you may have to live with the decision for a number of years, so a little home work now can save a lot of head aches later on down the track.
Take a look at all of them and find the one that closely fits your needs etc
Take a look at St George I found them to have some good loan packs, but thats just my personal opinion..
Any way, good luck and if you find a good lender with a good deal, give us a heads up so we can all take a look at them as well.Nucopia
Hi Get rich,
I guess you could ask how long is a piece of string?
Here is a few questions that should make a difference to your choice of lender. (oh, by the way, brokers don't recommend NAB unless it suits them, sorry to say. (usaully use Homeside – the Nab owned 'competitor' that pays more – Why? Because it is better for you? No….they are the only lender that does not pay a trail commission to the brokers, which of course is not in the interests of a broker now, as wonderful as the theory sounds that they are busy out there 'working to find you the best deal'. )
Of course some do – you just gotta find one.!. A HR manager I know from CBA made the comment to me once that one of the challenges all banks face, is trying to differentiate themselves form the other 'big 4/5 ' lenders, as there core products and rates are close to identical. It is only since the rate rises recently, that these lenders actually have different 'standard' rates. Essentially all will stick you with fees of some sort, but conversely may suit your lending strategy. While some banks will have an edge from time to time (for example NAB fixed rates, which up until recenlty were way below others, and are still the cheapest or 'equal' cheapest' ) or St.George with their LMI Included' high LVR loans, they have the same products, and offer packages of some sort. There is quite simply no best loan – I will repeat that again – there is quite simply no best loan.
So, ask yourself some of the folowing to decide which way to go.
* Do you envisage a problem securing finance form a bank or 'traditional lender' ?
* Is a cheap rate moreinmportant to you than flexibility and banking?
*Are you self employed?
* Are you planning on selling the property quickly or are you long term?
*Will the loan be interest only?
* Do you already have a relationship with any bank or lender?
* Do you need to ring up someone every second day to discuss things, and have you hand held or are you a set and forget person?
* Are you self employed?
* Have you any prioer credti history issues/defaults?
* Do you want to stay 'local'?
* Do you hate banks or just some of them?
* Is there anyone who you could talk with locally that is either A) A banker/lending manager or
A well regarded broker?
* Do you plan to pay more than the mininum repayments (makes a huge difference)?
* COld you benefit from a suite of products like credit cards, atm access, lines of credit, and fee free banking in exchange for an annual fee, or to you just 'want a loan'.?
Are you borrowing more than $250k?Answer as much of this as you can, and you shoudl be on the way to working out one of the better loans (not the best loan) for YOU! All the best
Hi GR,
I am in the same boat as you. The best option that I have got so far from a RefundHomeLoan mortgage broker is with AMP – 7.87% (before the rate hike) for a 400K$ loan with a 100% offset account. Monthly fee – 10$ and ability to pay back unlimited funds into the loan. I will talk to a few more brokers for more options.
Anyone used AMP before ? Are they any good ?
cheers
salilHi Getrich… invest 30 minutes in your future its worth doing…. go to Cannex (www.cannex.com.au) and get yourself a copy of the morning star mortgage report… go through the lenders and find the best loan for yourself in the 5 star loans… there are only about 10 of them. For mine I would choose a mortgage manager they will help you grow. Some of the newer ones are brilliant… try Awesome Mortgages or maybe ME and see how you go … good loan hunting!
Big.
A well regarded broker?
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