Hi All,
I am new to this so any advice would be great. I have posted this question on another forum but really interested as to what you guys think.
Has anyone bad experience with Homeside?
I am about to apply for pre-approval for my first IP and have narrowed it down to 2 lenders. I am looking to borrow $400k interest only offset a/c with max 90% LVR (hopefully 85%). I intend to live in the apt for 6 months to get the FHOG then move out and rent it as an IP. Hopefully within 2 years have enough equity and savings in the offset to buy another
I have spoken to 2 brokers
Broker 1:
St George Advantage Package @ 6.73%, $395 annual feeBroker 2:
Homeside @ 6.57%, $120 annual feeBroker 1 has told me to stay clear of Homeside, that they are a nightmare to deal with, slow with applications and generally difficult. I have heard this from others also.
Broker 2 insists that she has a good relationship with Homside blah blah and all will be fine.
I have worked out that going with Homeside will save me approx $1k per annum + $1k in LMI so over 5 years would work out approx $6k cheaper.
so is there any reason why I should not go with Homeside? Are they as difficult as I have heard and would i be better off paying the extra $$ for better service?
all and any advice is welcome
Thanks,
Ryan.Dont have an issue with Homeside but for like for like i prefer NAB.
Service with NAB is a lot better in my personal opinion.
Richard Taylor | Australia's leading private lender
Hi Ryan,
Depends what is best for you – service or savings?
The difference in interest rates means Homeside will save you $640 in interest and $275 in costs, which is a pretty compelling argument (although Homeside/NAB have a lower SV rate and I'd expect these rates to get back to parity with STG eventually). The $120 annual fee is for each loan you have with them, so if you split out the loan into two portions (say a standard variable and LOC) you'll be charged $120 on each.
I find the service with St George much better personally on the loans I have submitted and based on client satisfaction, but every bank can have problems.
The St George offset account has a glitch for owner occupied loans (it's called an offset account with no repayment offset option) that means it isn't a "true" 100% offset account (This will change when the property is an IP)…
Remember that the difficulties with the loan is for the broker to deal with – that's what we get paid commisisons for, so worry about what's best for you.
wow banks are asking for annual fees on top of the interest…didnt know that was happening.
I can tell you that STG that I have also had many difficulties with the tardiness and lack of care of STG, (I pre-warn my clients about the time delays faced when STG is involved). For want of a better expression, it sounds like you should go with the better of two evils….
The quality of service is important but it will be more helpful if could also save money.
JamesSampson wrote:wow banks are asking for annual fees on top of the interest…didnt know that was happening.Not sure of the above case, but it's usually a fee for a product that actually gives you a lower interest rate.
example:
We get 0.6% off each of our loans for a fee. The savings are much more than the fee, especially if applied across a few loans.I have heard a few people on this forum say they get a discount interest rate…
I am hopefully about to get my loan to build my house and land package but after about 6 months plan to switch to probably ANZ as (at least at this moment) the lender offering the loan charges no penalty to switch the loan to someone else…
I have banked with ANZ for over a decade, built one house and paid it off with them etc, etc… The current loan will be over $300k, so if in 6 months time i am still able to switch the loan over to ANZ without penalty, should i be asking for some sort of discounted rate from what they advertise??? or do i have to be doing multiple loans with them to qualify for any discount???
Hi Casanovawa,
Based on the $300K loan there is a special discount off the standard variable available, depending on the LVR you are aiming for (90% max) but is only available in the period it states (you can lawyas try for the discount if it's over but there's never a guarantee). Hence why it's alwys a good idea to speak with a broker who can shop the best deal for you if that's what's important.
Remember that you may have no DEF's to leave the loan but also check the discharge fee.
casanovawa wrote:I have heard a few people on this forum say they get a discount interest rate…I am hopefully about to get my loan to build my house and land package but after about 6 months plan to switch to probably ANZ as (at least at this moment) the lender offering the loan charges no penalty to switch the loan to someone else…
I have banked with ANZ for over a decade, built one house and paid it off with them etc, etc… The current loan will be over $300k, so if in 6 months time i am still able to switch the loan over to ANZ without penalty, should i be asking for some sort of discounted rate from what they advertise??? or do i have to be doing multiple loans with them to qualify for any discount???
Which lender are you talking about?
Make sure if they say nil switching fee they are not referring to say; changing from fixed to variable with them…I dont know of any lenders that let you go within 6 months for free. At a minimum will have disharge fee for release of title plus titles office fees to remove and replace the mortgage on title.
Ps. People talk about rate discounts however the pricing is standard – the major 4 all have standard discounts up to 0.7% depending on loan amounts. A lot of non banks claim to be cheaper but this often only applies before the banks give standard discounts.
Banker
I am getting my loan through Keystart (http://www.keystart.com.au) which is a WA Govt initiative that allows people to get into homes that usually couldn't. They expect you to move away from them to another lender after a period…. I think they had lent too much money and so had increased the criteria to qualify for a loan to reduce the amount of applicants, and as I understood it, as such were happy for people to move away to another lender so reducing the amount of loans they had…
So no, don't know the complete details in terms of what they would charge for you to shift lenders, but imagine it would be minimal… I like the fact that you can build and only pay $50 a week while that is occuring and only start full repayments when u get the keys. At that point i would be seeing if possible whether i could shift to a bank (probably ANZ) with accoutns with all the bells and whistles and maybe a better interest rate or even discounted rate…
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