Hi Luke
Not the greatest rate in the world but sure element of flexibility in their lending policies (or sorry was that pre NCCP).
Dont at this stage have a fully transactional 100% offset account as MISA doesnt fit that bill.
If you are happy and they are doing what you want why switch.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Is that rate 7.11% for a LOC? if so; it’s a pretty dame good rate….
Either way even if you did try to refinance to another lender; the cheapest you will get from a major bank is 0.1% off ( NAB) and the most you will get off from a non-bank is around 0.2% ( BMC) – not a great deal! after considering you will have to pay for the application fee/ valuation and LMI!! again….
If your happy with the bank, and the rate is within acceptable limits- stay. in regards to the equity release at 90% LVR, your already max out any potential or worthwhile equity release. Using an LOC is your best option; which you currently have in place already.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Sorry Michae, 7.11% is for the loan. The LOC is at 7.41%.
Cheers,
LukeOK. what’s the current LVR ? and what is your total borrowing and value you currently hold with CBA??
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Total borrowing is $335k and value of property is $380k.
Cheers,
Lukealright, stay with CBA
The LMI alone will make a refinance not worthwhile…and 7.11% is still a good rate for a bank that offer extensive network, good customer service and branch access etc..
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
As Michael mentions you would be crazy to move away.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Cheers guys, your suggestions are appreciated. I was not considering moving, but it is always good to get another opinion.
Luke.
Shape wrote:Richard is correct, here is a bit of history lesson. Euro you are true when you say they are "securitised lenders" and technical speaking ( book wise) it' doesn't make sense for them to lend for such specialized security, but at the end of the day- they do…i can;t speak for all brokers; but my firm alone has placed many loan via securitised lenders for unit has low as 30 squ meters ( read on)
From 2008-Beginning of 2009
There were a range of lenders that still offer finance for units as low as 15 squ meters ( CBA, ANZ …etc) however for the client who did not fit the CBA or ANZ criteria – there were – First mac, Heritage, Wide bay etc… First mac – they were specialist with the under 50 squ meters with there homerun08 product – how do i know this you ask? because our firm has placed well over 15 deals with first mac from 2008-2009 and they were all for unit's as low as 30 squ!!! note; this product was taken off the shelf as of Dec 2009. Homerun08- Unit as low as 30 squ acceptable, 60% LVR, full doc, self contained and max exposure limit of 20%.
2010- to Present
A lot of these lenders has tighten their rule books; unit as low as 30 squ only possible for existing clients of the bank and must not be there first IP. If the deal is right; nothing is impossible- it's just a case of asking. As mentioned, we still place loan via Firstmac if it make sense too. P.s Euro- relax a bit buddy, every time you post i can feel a bit of tension and stress. Relax! Regards MichaelGuys , guys guys..HomeRun08 was an Origin (ANZ) product they had on the market for maybe 9 months during 2008 and the first parts of 2009. It has LONG ago been pulled.
Qlds007 wrote:Michael i totally agree.I went to a breakfast meeting only last week at their HQ here in Brisbane and the < 50 Sq M product was mentioned as a niche product.
I have known Kim Cannon for nearly 18 years back to his Nationale days and First Mac as they are now known after the amalgamation of the previous businesses has always been slightly different in the odd area and space. He is definately an innovator and very successful.
I like Michael support non bank lenders as much as the next however you have to be accurate in your facts. The product is available and openly marketed by their BDM's. Like anything if you get the support of the back up staff and credit and the range of products is acceptable then certainly you would look at them as a lender and be in your suite of loans you would recommend to a potential client.
Personally i dont consider their range of product or service levels to be what i am after from a lender so other than the odd loan i dont place them high on my list of potential funders.
Cheers
Yours in Finance
Richard- come on… there is no such thing. HomeRun08 is long ended. Firstmac doesnt take sub 50m as a niche. You guys are having a lend
Euro if you read my post again, it’s been broken into 2 part (2008-end of 2009) and present. Either way this tread is going out of topic; and it looks like your looking for a “particular answer- no matter what we say” so we end the tread from there.
Each forum reader can decide what information they process and take up….
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
luke86 wrote:Cheers guys, your suggestions are appreciated. I was not considering moving, but it is always good to get another opinion.Luke.
Agreed – stick with CBA for now. Don’t know if I’d rank them highly on “good service” though – from my own personal experience.
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]
euro73 wrote:Anyway, it really bugs me when finance professionals bag non bank lenders on these forums. Without them, none of us would have an industry,, there would have been far less innovation in products, and we would likely all be paying more. It's really a bug bear of mine so Im pedantic about making sure they are represented correctly, not unfairly.Hi Euro
I don’t recall anyone bagging out non-bank lenders. I’ve actually got more loans settling at present with non-majors. I certainly don’t have an issue with them – and I don’t believe the others guys do either.
FYI – keep up those NRAS posts. Very informative.
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]
Jamie M wrote:euro73 wrote:Anyway, it really bugs me when finance professionals bag non bank lenders on these forums. Without them, none of us would have an industry,, there would have been far less innovation in products, and we would likely all be paying more. It's really a bug bear of mine so Im pedantic about making sure they are represented correctly, not unfairly.Hi Euro I don't recall anyone bagging out non-bank lenders. I've actually got more loans settling at present with non-majors. I certainly don't have an issue with them – and I don't believe the others guys do either. FYI – keep up those NRAS posts. Very informative. Cheers Jamie
Fair enough Jamie…. I was only taking exception to comments like inflexible, rates unstable, sub 50m2 niches etc etc. Those sorts of comments may not have been designed to imply non banks such as firstmac in this case, are not well liked or respected- but you can appreciate how they may be construed that way? I think non banks need as much positive promotion as possible, thats all.
Anyway… back to the post – crazy to move from 7.11% when you really wont save much ( if anything) by doing so.
I have delt in the past with Firstmac, in my opinion I would stay well away from anything they have to offer. They are not worth the hastle on dealing with………….Well I will take that back, if you like not being able to deal with a brancj=h face to face, or like not having an ATM card for 7 weeks or enjoy your bank loosing checks on you go ahead and deal with them………just remember when they gicve you a payout figure at the end of the loan it is not like then to come back a year later and ask for more money……………I would not recommend them to anyone!
We have our home mortgaged as well as our investment property with firstmac and have had no problems. They consistently have the lowest interest rate and aside from not having flash branches with high overheads we couldn't be happier. We also have invested in their high lives managed fund and the returns are great.
Like any lender Firstmac has pros and cons – so its really dependent on whether they will suit the investor. Their rates are good and they do non genuine savings to 90% (like a few more lenders) but their servicing is very conservative.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
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