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3.91% Variable Rate Home Loan from YBR

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My home loan recently went up by 18 basis points so I've been looking around for a new home loan and came across this deal. Only allows for 70% LVR but has all the other usual features, such as extra payments, unlimited redraw etc.
Not bad if you want a fairly basic loan.

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  • +2

    but has all the other usual features

    Yet no offset

      • I would rather go with HSBC. Their a bigger and well known bank, and lets you borrow up to 80%.

    • "Not bad if you want a fairly basic loan."

      It's almost a given that at this rate offset is not part of the deal

  • +1

    Hell of a lot of asterisks on that page. Better hope you only need one meeting, cause after that they charge you. OO only.

    • Interesting. How do you know this? I couldn't see anything on the website to suggest that they slug you with consultation / advisor fees etc

  • Is this rate before or after the APRA mandated interest rate rises of between 0.16 and 0.18% that the Big Four banks have implemented?

    • +2

      When did APRA mandated interest rate increase?
      I believe APRA insisted on holding higher capital reserve.All four banks did this through
      Capital raising. Yet they slugged mortgagees with higher rate and blamed APRA.
      They could have cut dividends.
      But decided to squeeze customers rather than share holders.

      • +1

        No. APRA only ask ADIs to cut back on investor mortgage.

  • Click Loans 3.91% Comparison Rate

  • yiddish bank of russia?

  • Don't know why people keep posting these mediocre home loan 'deals'

    I recently got a 3.5% 1 year fixed rate from Catalyst Money ( a credit union). They have an offset account, had amazing service (personal relationship manager who knew me pretty well by the end of the process) and no exit fees for when I refinance every year. Also allowed 80% LVR for no LMI.

    For people worried about 'name brands', your fear is illogical. Not relevant for borrowing, but most deposit taking institutions you'll come across will have gov't backing. Anyway in this instance you're borrowing from them… I'd love to have my lend go insolvent and take 6 months getting their sh$# together in an insolvency process…and not be collecting my mortgage repayments.

    My experience with the big 4 is that they're slow, and because they have very high volumes per relationship manager, provide poorer service than credit unions, so there's very little benefit in going with them.

    Just use a home loan comparison website like Canstar.

    • +3

      What kind of fees did you pay on the 3.5% 1 year fixed loan, and how big was the loan? I see Catalyst's 3.5% loan has a 5.21% comparison rate (https://www.catalystmoney.com.au/campaigns-campaigns-2014-1-…) and they tout no transaction or account keeping fees. That means the set up fee must be quite large.

      What are your options after the 1 year term is over?

      The variable rate loans are 4.35% and 4.68%, which is quite high compared to the competition.

      Regarding lenders calling loans… it's very rare, but it does happen. http://www.bankvictims.com.au/dr-evan-jones/item/10033-the-c… CBA gave one property developer 24 hours to pay a $6.4M loan because CBA didn't want BankWest's commercial loan book.

      • +1

        @Cluster

        You need to do some home work on "comparison rate" first. Its on the basis that after the 1yr fix, the bvorrower will continue to pay the current variable rate for the remaining 29yrs. This rarely happens in reality as borrower usually look for the best deal when the 1 year fix expires.

        The comparison rate is largely flawed. Poor effort from ASIC.

      • The quantum was ~700K, fees were as follows:

        • $380 legal fee (cames off loan)
        • $220 valuation fee
        • $219 registration fee (charged by Land And Property Information Office)

        I took a view on rates holding or decreasing over the medium term, so the intention is to refinance every 12 months if I can get a ~30bps improvement on the rate (which I calculated to more than offset the costs of refinancing). As googleyahoo69 says, I don't find comparison rate particularly helpful.

    • wow.. 5.2% comparison rate, you got done

    • +1

      I'm not sure what others are criticising you for. The 1 year fixed rate is 3.5%, with a comparison rate of 4.31% because it assumes you don't lock in another special and pay 4.35% after 12 months. No idea where others got 5.2% from unless they were looking at the wrong loan.
      I also agree that I'd love to have a lender go broke and stop collecting repayments or loose my loan file, so I don't understand the preference for brand names either.
      As for lenders calling loans, there's nothing to worry about for consumer residential loans as long as you make your payments on time (google "consumer credit act"). The problems some bankwest borrowers had during the gfc related to commercial loans.

      • @newdad

        You are correct. acc act protects retail consumers. The 6.4mil is likely to be a "commercial arrangement" and not subject to consumer credit code.

  • +1

    Does Mr Bouris FIRE you if you can't repay your loan ?

  • Personally, I wouldn't call a home loan with a good rate a "deal" or a "bargain".

    If it were a great rate with a reputable company for a limited time only then perhaps, but generally no.

    Neither would I come on OzBargain to check for the latest and greatest home loan offers!

    • +2

      No worries mate. Good bye

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