Have been a customer for 2 years and just discovered that my variable rate offered is not teh same as variable rate advertised.
Response from My Rate is that the money financed 2 years ago is more expensive than todays money. The variabel rate I tool out 2 years ago was 6.7% is now 8.69%. The variable rate that they advertise to new customers ( same type of loan ) is 8.53%.
At moment trying to resolve with My Rate – yet does not look good.
Just want to ensure that my variable rate is same as one that they profess to be via their site
I also have a loan with MyRate or Loan Services Australia or is it ING ??? The answer/reason they gave you is the most back to front screwball excuse I have heard from a call centre operator for a while. Funds were cheaper 1 and 2 years ago hence the low rate they offered. Now funds are more expensive to obtain, so if their standard variable rate is now 8.53% and is good enough to get new customers signed up on exactly the same type of loan/mortgage, then it should be offered across the board. It is a variable loan. The only obstacles are, they make up the rules and they have all the money.
Good luck and let us know what unfolds.
My suggestion:
Why not you write a letter to current affair or give them a ring about your problem?
I love to see them being exposed in front of current affair's interview…Cheers
Thats the problem going with these sorts of companies.
With most, or maybe all, variable rate loans, you will find the lender can vary the loan at their own discretion and it doesn't have to keep to the same margin. Even some of major banks put their rates up by more than the RBA increase. you would have agreed to this when you took out the loan.
These small loan companies get all their funds from the markets – not from deposits, so the cost of funds would have gone up because of the sub-prime crisis.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I have been with MyRate for seven months. Three months after taking up the loan, my rate was increased to .10% more than their advertised rate.
Surely this is a dodgy practice!!
I have been having numerous conversations with them with no luck. My advice to anyone contemplating using My Rate is to check this out first. Woudl be interested to hear any other experiences
If the rate is variable the lender can vary the rate any time.
Many clients have been hurt by taking out loans with Macquarie – especially no doc and low doc loans. A few months ago they stopped lending to new clients and dramatically put their rates up on these products – I think at almost 1% above what they started at. With high exit fees many clients are stuck,
These days I personally would only take out loans with the major banks. I put all of my clients with a major bank where possible. If you need a low doc or are credit impaired, then you may have to use one of the non bank lenders, but they are used as a last resort.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes I do agree Terry… brokers who advised 'non-bank' lender should be put into jail…. eeeehehe…
I heard alot re: RAMS, WIZARD, Peppercorn etc…Sure.. they will dismiss soon… just wait the time..
Aussie John was loud about competing with bank only 2 years ago.. but Aussie home loan only passed on 0.75% c.f. bank 0.8% and worse still sold his business to CBA… it is a laughing stock.I don't have a problem with MyRate changing the rates – they are variable after all. I just find it dishonest that once you sign up for a loan at a low rate, they raise your rate but still advertise the low rate to get more others to sign up.
I queried this and here's their response:
"From time to time you may notice differences in the rate you are paying against the rate being advertised for new customers. There are a number of factors which influence rates including funding conditions and market conditions at the time. At present, your rate is slightly higher than the advertised rate for new customers. There maybe occasions where the situation is reversed, again depending on general market and economic factors at the time. Our website clearly indicates that the advertised rate is for new applicants only."
This means their advertised rate is meaningless as they can and do change it once you have taken a loan out with them.
That said, 'my' MyRate rate (higher thatn the advertised one) is still pretty decent.
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