Hi Guys
I have a mortgage with with CBA currently and am researching other providers / lenders as I am considering refinancing my home loan elsewhere.
Im also considering migrating all my banking to another provider but as I have discovered it appears many, if not all, small lenders, do not have those products.
When I say small lenders, I mean the likes of Pacific Mortgage Group et al. From the small lenders I have found PMG to be the best, not in terms of the lowest rate, but flexibility and fees considered.
Im finding with the current interest rate rises that it is really starting to bite. Im also trying to work things from the other end by getting a promotioni at work for example, but in the meantime I may as well try and see if refinancing is viable and desirable – even if it means going back to CBA and dong some negotiating using another 'offer' as a benchmark to try and reduce my interest rate with CBA.
Anyone had any experience with refinancing their mortgage? Anyone here left the Big 4 banks for a Credit Union or other?
I should mention also that my research indicates Credit Unions are not all that great either – they seem to have very similar fee structures and interest rates.
Thanks for any information.Steve
Hi,
If your sitautaion is not too complicated then I would consider ING if I was looking for a loan myself at the moment. Good service, good rates not too many fees + $1000 rebate offered at the mo if you refinance and open a transaction account with them.
Other non big 4 lenders to consider could be Suncorp, AMP (bad service at the moment due to very cheap fixed rate but usually competitive), Newcastle Permanent Building Society (if yoiu live in the area)….+ a few others..
Where are you based?
Cheers,
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeWhat rate are you paying at the moment?
Marty I actually tried ING and i don't have enough equity in the unit yet unfortunately. But I will look into those others. I'm based in Canberra.
GOM I'm paying 7.31 per cent which is actually less than the official CBA rate. But my concern is that within 12 months, CBA have risen their rates over and above the RBA rate. CBA seem to be the most aggressive with rate increases. I feel there's some principle in leaving this bank. I know other banks lift their rates over and above but not to their extent.
An online broker struck up a deal with NAB at 6.97 per cent and said that he had contacted them with my situation (yes a little complicated) and he said he might even be able to get it a bit lower. I kind of like this offer but wonder its kind of like going from one big bank to another? Is that necessarily a bad thing? He mentioned their loan structure is more flexible as well and I would also be able to migrate all my savings accounts and credit card and completely close up shop with CBA.
Decisions, decisions.
Thanks for your help guys.
Hi Surrealist
As a fellow CBA customer, I'm feeling your pain!
There's certaintly more competitive offerings to what the big 4 are offering at present.
As Marty touched on, ING are quite good at the moment but it seems that this option has already been ruled out. Adelaide Bank can be good as well (particularly with their serviceability).
It's hard to comment on what you could reasonably achieve without knowing the numbers on your situation.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I like the flexibility with major lenders (I am with ANZ Breakfree – 6.95%).
I think you could do better with NAB choice package (friend is paying 6.87%)I don't think ING is very competitive and not flexible especially with complex investment structure
I would stay away from pacific mortgage, homestar etc…Hi Surrealist,
Personally I would say no. THat said, CBA & Westpac have not been as competitive for a little while but smaller lenders, especially 'no name ones' and a lot of credit unions are all bad. And really, if y ou are only talking a few basis poitns why would you bother.
Me? At the moment if I needed a (nother) loan, I would narrow it down to three – being specific here…. it would be on my existing NAB choice package (or I'd get one if I didnt!!), or a NAB base variable loan, or the ANZ Simplicity Plus homeloan. All depends on your needs byt that way you have the flexibility of a proper bank, and very competitive products in the market. (See if you can find a credit union for example that offers a better no frills loan than a 'Simplicity Plus' one.
And……..unless you can save a good amount (I would suggest you would want to save all your exit/application costs within 18 mths maximum!) never leave for 'principle' – they wont care one bit, and you spent money for nothing. It makes sense if you can be objective.
All the bestCheers
v8ghia, ING mortgage simplifier = 7.12% with no application fee
Steve,
How much is your loan?
You are on Wealth or MAV Package with 0.5% discount?
You can increase the discount to 0.7% with no cost (7.11%).
Cheaper than ING.ing $300K plus is 6.96% with $499 app fee no ongoing fees.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeING is only 6.96% if borrowing more than $300k.
You could give Adelaide Bank a go – your broker might be able to get you 6.94% and their serviceability is pretty good.
Choicelend and Homeside (depsite being NAB money) are both still pretty competitive.
If you do stick with CBA, it will be worth while forking out the $350 p.a for the MAV package – sounds like your not getting the discounted rate at present.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
god_of_money wrote:v8ghia, ING mortgage simplifier = 7.12% with no application feeYeah I know GOM – but other than maybe a 'one off loan' I'd rather stay with one of the majors – except Westpac and possibly CBA of course! Just saw so much carnage at the onset of the GFC and since…… Probably splitting hairs with the rates but…. Anz simplicity 7.1% Nab base variable 7.17 (admittedly both with app fees of $595 – but they are not mortgage insured if 80% or under LVR) and NAB choice package is 6.97 (250k + ) or 7.07 (100k +)
Cheers
Yeah cheers guys interesting posts. My mortgage is 282 k. There isn't a real lot of competition in the market. It will be interesting to see what Swanny comes up with lol. Not saying it will be anything great but intrigued to see. If our loans were more readily portable from one provider to another, I reckon that alone would help competition. Or let some more foreign banks in who do not depend soley on local market conditions to make a profit. Imagine foreign banks entering the market all competing to offer the lowest rates and fees? Might screw a few shareholders over but.
You indicated that you don't have enough equity in your property as yet for ING
If your LVR (Loan Value Ratio) is greater than 80% you will probably have to pay Lenders Mortgage Insurance (LMI) again so insure that you factor that premium into your refinance costs
You may or may not (depending on lender) receive a rebate if you have paid LMI usually only of the policy is less than 2 years old. I recall a thread sometime ago when another poster mentioned that the CBA does not give a rebate on LMI paid
Make sure you do your sums as it may take 12-18 months or even 2 years to recover the costs associated with refinancing
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