anywon here what RHG are cutting rates by?
CBA full 1%
WBC .80%
NAB 1%What about others?
You would need to call RHG, they will send you a letter in a few weeks but otherwise they probably won't announce it in the media and it won't be the full cut.
If you are unhappy at RHG you should look at refinancing to Rams (now owned 100% by westpac) as you can get a rebate off your early repayment fee, depending on your loan amount it can be up to $2500. You will save $$ thousands on a much better rate and product. This is what I have just done. I have many connections at Rams so if you need help let me know.
Cheers
Well below says it all! good to see they need to make more profit for another week!
Hi In regards to the interest rate I can advise this is under management review and we are expecting a decision on Friday. Kind RegardsCustomer Service
Contact Centre Outbound – RHG Mortgage Corporation LtdThanks Expert but if i leave early will be up for more than $2500 in fees!
PosEnterprises wrote:Thanks Expert but if i leave early will be up for more than $2500 in fees!Sure but if you get to save say $800 a month by moving you'd get it back in under 4 months.
You'll need to work out how much you can save a month by moving and if its worth moving early.Pos
My ERF's were around $7300 after 1 year with them, so with the rebate around $5k. But if you look long term it is well worth refinancing a) to a better institution and b) to a better rate.
The thing with RHG is their loan book is diminishing, they don't cater for any new business except for variations to current loans. Their ability to pass on rate cuts is not the same as bigger institutions. Before the rates started falling, the majority of Rams business was refinancing RHG customers.
It works out to be about $13k if I leave. Will have to crunch numbers again.
Don't forget you may be able to claim loan fees on an investment property over 5 years, or the term of the loan if it is shorter than 5 years.
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
$13k is hefty, a lot of RHG products had ERF's at 2% of loan amt if you refinance within first 2 years, and then drop to 1% after that.
RHG just told me its going to cost me $10K to unfix my load and its onlu $220,000. There assholes and no one should go with them, my cousin works for ACA, I feel like taking this further, but….who knows.
I bit the bullet and got out of RHG, it's a pitty westpac didn't also purchase the old Rams loan book, instead the customers got shaft ed and ended up with RHG as we now know it, which has little or no future. Remember Passnby, it's not really out of pocket cost b/c you add the fees to your new loan amt if you refinance but yes it does eat into equity. You need to work out how much you save with a better rate, a broker can help you with this obviously. The good thing is RHG doesn't take any new business so nobody else can go with them except existing customers. Break costs etc are bit of a rort for sure
wow, so your saying there not taking on any new customers? so how do they stay afloat then?
right now with existing customers, variations/increases only…good question, it's a deminishing loan book. a lot of customers are refinancing to Rams so they make on ERF's etc..they may get bought out sometime down the track but who knows? it's still a valuable loan book but without new business it will struggle you'd imagine…always give them a call if you are unsure
Rams have reduced their variable rate by 0.9% this morning.
you beauty a good call for once. 0.9% will let me hang around for another 9 months then i am outta here! thanks for the update!
I am havin a nice day today
oh I forgot to ask is RAMS and RHG same rate cut?
lol no, RHG is completely seperate from Rams now
Rams (owned by Westpac) have reduced their rate by 0.9%. Rate relief product is now 5.69%!you'll be lucky to get that from RHG…keep calling them otherwise you will never find out
sorry for the bad news for you…
Just contact RHG they are still reviewing will have answer end of business day. Probably thinking how they can rip us off more.
they will reduce it but by how much i'm not sure…let us know when you find out…
This is what i got from yahoo Site! – RHG ripping us off as usual!
Just spoke with R.H.G. Dec 5th was advised that the rate cut arising from Tuesdays RBA Cut of 1% is only .65%.
I said-
"why so little"?, the reply was-"that is the amount that the directors decided was viable to pass on".
" because their money comes from overseas they have to pay higher rates and the RBA rate doesn't have a bearing on the rate that they pay for their money."
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