Looking for the best home loan, so far considering Suncorp and loans.com.au

em on 30/10/2015 - 11:12
Last edited 30/10/2015 - 11:39

Looking for a home loan, looking to get a loan of ~$400,000, not paying LMI so less than 80%LVR.

For a long time I've assumed I'd go with loans.com.au (https://www.loans.com.au/home-loans/dream-loan-offset-variab…) the comparison rate is 4.08%. There are no account fees, an offset with a mastercard to use funds (so I could just deposit pay and then use as necessary).

However Suncorp's Home Loan package plus caught my eye today. They have a loan package which would come with a bank account which acts as an offset. The other points of difference which make it competitive are: $1500 cashback, no annual fees for the life of the loan, no annual fees for a credit card with a rewards system, could move my finances to one place rather than having separate accounts for financial products. Their comparison rate is 4.15% however.

Does anyone have experience with either bank, what are people's opinions? Are there any other options to consider?

Financial Home Loan

Comments

  • stratbargain on 30/10/2015 - 11:24
    +1

    Isn't loans.com.au 4.08 not 4.10? Also it looks like Suncorp have a $10 account management fee that loans.com.au don't have.

    I'm with loans.com.au and happy with them. The application process can be a bit drawn out as it's all over the phone/mail so make sure you have time to get everything settled. Overall I've been happy with them.

    • em on 30/10/2015 - 11:39

      Yes you're right about the comparison rate! I can't see Suncorp's $10 account management fee in the rates and fees tab though.

      I did think I'd be happy with loans.com.au as well but there is almost enough going for Suncorp to sway me towards them - the cashback and package flexibility…

      I've heard loans.com.au is good about passing on rate cuts to existing customers as well, I wonder what Suncorp's reputation is (hopefully someone else will have some experience with that!)

      • stratbargain on 30/10/2015 - 14:58

        The $10 fee wasn't in the tab but it was in the fee brochure, so worth double checking.

        • em on 30/10/2015 - 15:08

          Yeah, I saw that but the promo says "Account keeping fees: no ongoing account keeping fees" under 'fees' in the rates & fees tab and further down also mentions no package fee for life of loan, so I'd say it is worth checking when signing up but doesn't sound like there would be a $10 account keeping fee applied.

        • stratbargain on 30/10/2015 - 15:11

          @em:

          Nice, I missed that one :)

        • em on 30/10/2015 - 15:30
          +1

          @stratbargain: Yeah, it really does seem like a pretty good deal considering what other people have posted so far. Cashbacks are nice but don't contribute much in the long term… It's all about offset flexibility and no ongoing fees for me, as well as a competitive interest rate. The packaging stuff is nice as well, so I'll just have to keep thinking about it.

      • SlickMick on 31/10/2015 - 15:44

        I can't find better than loans.com.au. Their rates are still going down while others (ubank) are going up.
        I'm currently refinancing more loans to them. Very good value offset loan, and if you want an investment loan sometime, can get for 4.00% comparison (I went for 4.04% IO)
        Their application process is a bit painful, but they're pretty responsive. End up corresponding via email rather than online msgs and uploads. Nothing like the grief ubank put you through.

        Can you not get as good a credit-card elsewhere? You realise Suncorp's isn't close to free when you consider the additional interest you're giving them.

        I don't see any advantage to have everything in one spot. I direct debit from loans.com.au to citibank to pay creditcard, or I direct debit from Suncorp to Suncorp. Makes no difference to me.

        • em on 31/10/2015 - 18:37

          Yeah I was steering clear of Ubank, a friend is with them (Refinanced) and wishes he went with loans.com.au, he knows a few people with them and they really like it.

          Sort of leaning towards loans.com.au because I do love saving money (hence being here… cycling through Amex high rewards cards for free year, etc) but having a bricks and mortar bank seems to be valued by a lot of people!

        • CheapskateQueen on 01/11/2015 - 14:32

          I'm happy with loans.com too but how are you getting 4.04 for an investment loan with IO?!

          I'm on 4.27 % for IO atm

        • SlickMick on 02/11/2015 - 09:47

          @dontapoligize:
          who's your home loan with?

          you need to have home loan with same lender so they don't have to add that surcharge

        • samprofs on 07/11/2015 - 20:37

          @dontapoligize:

          Can do 3.99% (4.02% comparison) on 500k plus investment P&I with a major lender (broker only special)

        • CheapskateQueen on 02/12/2015 - 10:03
          +1

          @samprofs:

          ah I just realised loans.com.au is increasing rates AGAIN?!! Gggrr. This is ..odd for them.

          Right now I'm IO investment loan. i wonder if they'll let me change to owner-occupied P&I even though it's rented? I mean, it's only rented for the time being because I can't afford to pay it off myself.

        • SlickMick on 02/12/2015 - 11:53

          @dontapoligize:
          yeah spewing. Just refinanced to them and before 1st payment the rate's gone up

        • CaptainCoolio on 02/12/2015 - 13:19

          @SlickMick:

          Did they contact you about the rate going up or did you just notice online? My owner-occupied rate has gone up but I've yet to receive any notice from them about it, just happened to see it online.

        • SlickMick on 06/12/2015 - 22:40

          @djcupitt:
          Yeah got a letter from them

          edit: got letter for primary residence loan with offset account - now 4.37%. Haven't been told of investment loans which will now be 4.17 :(

  • [Deactivated] on 30/10/2015 - 11:52

    Newcastle CU looks good

    • em on 30/10/2015 - 12:06

      4.35% comparison rate on package, annual fee is $375 but they have a $2000 cashback promo?

  • oscargamer on 30/10/2015 - 12:48

    Have a look at ingdirect.

  • [Deactivated] on 30/10/2015 - 13:27

    I'm refinancing, just got off the phone to Newcastle

    I have included their rates below, these aren't comparision rates, with alot of the deals the comparison rates factor in the complete loan term. It's easier these days to churn provider so using actual costs is more reflective of what you will be paying over the term of special offer/fixed rate etc. if you get my drift…

    Fixed 2 years - 3.79% no fees
    Premium Package - the variable is 3.99% + $375 pa (conditions apply)
    Real deal is 4.2 % + $550 set up cost

    I'm going for a Fixed/Variable split 70%/30%

    plus you get $2000 credited to your mortgage account

    Tell me if you find anything better!

  • niknah on 30/10/2015 - 14:29

    I'm with loans.com.au, the interest for me is 4.41%

    So be careful of all these rates, a lot of them just have a good rate on their front page. But when the interest rates decrease, it doesn't always get passed on. You have to remind them to do it some times.

    • stratbargain on 30/10/2015 - 15:14

      Is that an investment loan or do you live in it? (Remember investment loans are an extra 0.25% on their standard rates)

      • SlickMick on 31/10/2015 - 15:48

        get your investment loan with same provider of home loan and they don't have to charge you the surcharge… and you can get an even cheaper product because you don't need an offset account.

    • SlickMick on 31/10/2015 - 15:46

      If you're paying 4.41% you're doing it wrong!

  • sagrules on 30/10/2015 - 15:54

    Can you please confirm if this also includes home loans for REFINANCING?

    • em on 30/10/2015 - 16:29

      "Package fee waived for new owner-occupied home loans!" - Suncorp. Not sure about loans.com.au but it's their normal rates.

    • SlickMick on 31/10/2015 - 15:49

      can confirm loans.com.au rates are for refiancing

  • martismo on 31/10/2015 - 09:21

    ING Direct seems worth a look if you are borrowing between 150k and 500k with an LVR less than 80%. Comparison rate is 4.19%.

    • em on 31/10/2015 - 09:26

      Yeah, someone mentioned that earlier, but the annual fee is $200 and only waived in first year… I would think loans.com.au would still win out over that :)

    • SlickMick on 31/10/2015 - 15:50

      Why? What are they giving to compensate for the higher interest rate?

  • pclyne on 31/10/2015 - 12:54

    PLEASE consider using a credit union (I'm personally with Hunter united, but at least look at one/some of your local ones). I've been really happy with them and would encourage everyone to at least give them a look…

  • samprofs on 01/11/2015 - 17:00

    My company currently has a promo with Vow Home Loans (one of Australia's largest aggregators with 24 Bil worth of loans under management). The interest rate is 3.89% and the comparison rate is 3.89% p.a. It is our in house white label product fully funded by Macquarie Bank. There is also no trail (to me the broker)… hence why the rate is so low.

    It comes with 100% off-set, Unlimited free ATM withdrawls at all STG/Bank of Melb/Westpac ATMS and no annual/application fees. The qualifying rate is 7.25%. Therefore, it is easier to qualify compared to ING. Available for re-finance, purchase or construction. The process is very easy.

    • SlickMick on 02/11/2015 - 09:48

      where were you last month when I needed you!!???

      for investment loans?

      • samprofs on 05/11/2015 - 12:39

        Hi,

        One of our lenders does 4.14% on investment loans (if you also switch your PPOR to them) 100% off-set. Otherwise a 3 year fixed on investment at 3.94% reverting to 4.42% is the best option (It ia around 80 bps lower than big 4). Great to structure it at interest only (without any rate increase) and focus on paying down your non-tax deductible debt (PPOR).

        • SlickMick on 06/11/2015 - 10:06

          paying 4.02% IO. could have got 3.98% P&I

        • naritas on 06/11/2015 - 10:17

          @SlickMick: For most people the rate you mention (4.02%p.a. i/o investment variable) is not feasible. It would probably have to be in a cross-collateralised lend or a majority owner occupied borrowing situation which is then mixed with investment lending. The investment lending rates samprofs mentions are excellent for exclusively investment borrowers with fairly standard requirements who don't wish to cross-collateralise. NB: An exceptionally strong borrower with a very large loan ($1mil+) at a very low LVR (under 60%LVR) could get the rate you describe - but this would be an extremely small percentage of all borrowers.

          For anyone interested as to an indication of the sharpest investment lending products/pricing, you can find it here: https://www.naritas.com.au/widgets/rates-widget/?t=hl#invest.

        • SlickMick on 08/11/2015 - 01:25

          @naritas:
          Not feasible? Am I a special case?? lol I haven't cross-collateralised anything, nor is my loan that big. Why don't you just ask them, like I did? (I realise you aren't actually looking, but rather selling.)

          I had other offers for the same rate also. So yours isn't competitive, sorry.

        • naritas on 08/11/2015 - 08:28

          @SlickMick: By your own admission "you need to have home loan with same lender so they don't have to add that surcharge" (you said this in reply to dontapologize on 02/11/2015) - so you are now contradicting yourself.

          Exclusively investment lends cannot be compared to scenarios where the borrower is placing an aggregated debt where the majority of the loan is owner occupied on P&I repayments. They are simply two entirely different requirements. As we said in our earlier comment, it's not impossible - just an entirely different scenario with entirely different pricing. The rates for the scenario you describe could be at home loan rates (https://www.naritas.com.au/widgets/rates-widget/?t=hl#vari.) which are possibly cheaper than what you are paying (simply follow the link to see proof). Given that we've been in business nearly 15 years and have approximately 140 brands and products lines on our panel we're adequately qualified to make comment on what is feasible for most people and what is not.

          PS On a side note, OP if you're still evaluating Suncorp - they are one of the lenders that will offer you owner occupied loan pricing for investment lends if your aggregate debt portfolio with them is majority P&I owner occupied.
          Hope this helps.

        • SlickMick on 09/11/2015 - 16:15

          @naritas:
          What contradiction? It's a big jump from my suggestion (of refinancing PPOR also) to not feasible!
          I also said if, for some reason, you didn't want to have PPOR with loans.com.au, you could find someone else who's also offering 4.02% for investment only loans, eg AFG Home Loans.

        • Stahh on 21/01/2016 - 12:39

          How do we get these loans of 3.89% p.a? i'm looking at owner occupy loan of about 750k

        • naritas on 21/01/2016 - 13:05
          +1

          @TheStahh: Check out: https://www.naritas.com.au/latest-news/fixed-rate-special-3-…

          You'll see a selection of sub-4%p.a. loans coupled with rebates.

          Hope this helps.

        • samprofs on 27/01/2016 - 19:15
          +1

          @TheStahh:

          The rate is achieved by waiving all trail income to the brokerage (our firm). It is going up by 0.2% (to 4.09%p.a) due to recent APRA capital requirement changes.

          However, the comparison rate is still lower than loans.com.au and the re-finance process is much quicker and simpler. The Vow Home Loans (by Macquarie Bank) product has no annual fees, upfront fees and comes with 100% off-set at no cost.

          For most PAYG clients all we need is last 2 payslips showing YTD figure and 6 months statement of current home loan showing good conduct (no defaults or arrears). In most scenarios we get full unconditional approval within 48 hours.

          Hope this helps.

  • naritas on 01/11/2015 - 18:29

    Hasn't Macquarie Bank committed to a 20BPS increase to this delivery rate effective 20 November?

    • samprofs on 05/11/2015 - 12:36

      Nope. SVR. This is a private label product designed to compete with ING. It is 4.04%p.a, but with ZERO trail to me…we can make it 3.89% and 3.89% comparison with NO FEES whatsoever.

      Time to make the move to Vow :)

      • naritas on 05/11/2015 - 13:32

        We have a variety of private label products ultimately funded by majors and RMBS - Advantedge, Macquarie, etc - all of them have flagged their intention to raise variable rates. Vow is almost certainly guaranteed to be affected by Macquarie's move. The only private label products not affected are the micro lender private labels.

        • samprofs on 07/11/2015 - 21:07

          It will move in line with ING Direct. The smaller lenders have not been effected. The capital requirement is another excuse to appease shareholders and increase margins. Can see mid-tier lenders substantially gain market share.

          Bank of Queensland just released a promo at 3.99% (4.12% comp.) on the clear path with 100% off-set! Love their quick turn around times and policy !

        • sagrules on 10/11/2015 - 15:31

          @samprofs: Had a look at this offer you mentioned - seems to be contradiction on their website.
          http://www.boq.com.au/sphone/home-loans.htm

          Discount Offer*

          Owner Occupied and Investment

          Percentage Rate % p.a.

          Comparison Rate

          % p.a.

          $150k to less than $500k

          4.15 (0.27% p.a. discount

          4.28%

          $500k +

          3.99 (0.43% p.a. discount)

          4.12%

          •A low variable rate of 4.42% p.a. (4.55% p.a. comparison rate)
          •No application fee
          •One free valuation
          •Free redraw
          •100% Mortgage Offset1
          •Flexible Repayment options
          •Top Up

          *Offer available for minimum $150,000 new to bank lending only. For applications received from 29/10/2015. Maximum LVR up to 80%. Not available for the refinance or restructure of existing BOQ loans, construction home loans or Self-Managed Super Fund loans. The discount applied under this offer will continue to apply until you request us to vary your loan. Full terms and conditions available at any BOQ branch. Fees and charges are payable. BOQ standard credit assessment criteria applies.

          Fees

          Application Fee $0

          Monthly Fee $10

          Valuation Fee

          One free per application2

          Settlement Fee3 $150

  • sagrules on 10/11/2015 - 15:33

    Also, can someone confirm regarding the suncorp Home Package Plus, if I want to split the loan in two separate names not as (part fixed and part variable) is the cashback per loan?

    • naritas on 10/11/2015 - 16:25

      If you had a scenario that you wanted evaluated it would be best to get something directly from Suncorp support in writing.
      Their requirements (pasted below) often exclude people bringing over investment debt (along with their owner occupied debt) with separate names/purposes collecting two lots of rebates from them - your scenario, however, may not be descriptive of the majority..so it's worth checking.

      Taken direct from the Suncorp offer text: "Customers with new variable or fixed rate Home Package Plus lending of $300,000 and above will be eligible for a generous $1,500 Cash Back offer. New lending must be owner-occupied purpose, principal and interest repayments and LVR 90% or below (including LMI)." and "How it works: Applications lodged between Wednesday 14 October 2015 and 4 December 2015 and settled before 30 March 2016 that meet the above criteria will receive one payment of $1500 within 30 days of settlement into the customer’s Everyday Options Account (mandatory account as part of the Home Package Plus)."

  • CaptainCoolio on 01/12/2015 - 11:46

    I've been with loans.com.au for a few months now, signed up to their essential loan when it was 4.02% variable rate (4.04% comparison rate). Happened to log in to my account today to discover they've just raised my rate to 4.17% but I have yet to hear anything from the bank about this.

    Looking at their site, new loans are still at 3.99% variable rate. Anyone know what the deal is about raising rates on existing customers while keep their sign up rate low? Seems a bit arbitrary to me; what's to stop all of these low rate loan providers from raising rates after a few months while keeping the sign up rate low?

    • em on 01/12/2015 - 12:01

      Is yours offset or just the base loan? Base loan is 3.99 but I know the offset loan is a little higher. Although looking at their website I can't see the 4.17% anywehre (https://www.loans.com.au/home-loans) and the interest rate pdf is from September (https://www.loans.com.au/media/Documents/Home%20Loans/dream-…)

    • SlickMick on 06/12/2015 - 23:19

      I don't think they can have a different rate for new customers - they'd have to specify that it's a honeymoon rate and calculate a comparison rate based on their intention to raise the rate to what existing customers are paying.
      (They'd just be slow updating their website. You'd find out the new rate some time during the application process.)

      The only thing that keeps them from bumping up the rates after we sign up, is the risk losing reputation and not being able to attract customers. (I have no idea why any of the big banks are still in business. I haven't dealt with one in decades.)

      I'm so annoyed at investing a month of my life in refinancing and before my first payment it's already time to shop around again.
      I'd love to see the end of the archaic mortgage processes (and costs), and get our own valuations (since we usually have to pay for them) so that we can take them to a new lender without incurring additional fees. Imagine being able to do a switch lenders at a whim.That would keep them on their toes!

      • CaptainCoolio on 09/12/2015 - 15:15

        I don't think they can have a different rate for new customers - they'd have to specify that it's a honeymoon rate and calculate a comparison rate based on their intention to raise the rate to what existing customers are paying.

        I thought this should be the case as well. I got my letter in the mail from loans.com.au yesterday but the website still hasn't increased their advertised rate. I read all of the terms and conditions very closely and there is nothing in there about this being a honeymoon rate. I'd feel much better about this if their advertised rate also increased, but it just seems so dodgy while it's sitting there at the old rate. The evolving whirlpool thread on this referenced above is interesting to follow. To me it seems like bait and switch.

  • samprofs on 05/12/2015 - 14:41
    +1

    I am an MFAA accredited broker. Best my firm can do is our Vow Home Loans 100% off-set range $0 ongoing fees for life $0 upfront (Except $383 settlement fee for purchases) and 3.89% p.a (3.89% comparison) that will go up to 4.09% p.a from April 2016.

    It is Macquarie Bank funded, Macquarie Bank support, but white label product. 24hr turnaround from submission to approval. Excellent policy for cash-out as well, if you decide to renovate or want more money out of your loan in the future.

    • yes8s on 09/12/2015 - 00:01

      I'm in the process of exploring my options for a refinance for my PPOR. I was imformed last week that the current rate for the vow product was 4.04% rather than 3.89%. Has this dropped recently or is this a special rate you personally can get?

      • samprofs on 27/01/2016 - 19:09

        Hi this is the same product. I can offer it at the lower rate by waiving all my trail income.

        It is 4.04% and by waiving all trail income the lender reduces the rate to 3.89% . It is going up by 0.2% from April 2016. However, it is still better comparison rate than loans.com.au and far quicker/easier to re-finance onto. From application (all supporting docs submitted) we usually get formal approval within 48 hours.

        Supporting docs for PAYG: Last 2 payslips and 6 month home loan statement with current lender showing good conduct (no arrears). Very simple and quick process.

        For more info you can go to www.profs.com.au/apply-now to see if you qualify or email me directly [email protected]

    • alexb777 on 30/12/2015 - 09:31

      I'm looking for 4 or 5 year fixed p&i investment home loan at the moment. Is there a good deal you can do for that?

  • naritas on 09/12/2015 - 16:37

    @yes8s At 4.09%p.a. there are cheaper loans available from better considered lenders depending on your loan size. To name but a few on our lender panel: Newcastle Permanent, Family First CU (which has a product at 3.99% CR4.02) & Auswide Bank. If you're presently evaluating your circumstances we'd be happy to provide you a comparison, all you'd need do is complete the form located here: https://www.naritas.com.au/contact-us/enquiry-form/

  • jonesyGT on 10/12/2015 - 08:24

    Look at brokers. We went through AFG & got a good deal. At least with a broker you can see most loans in 1 sitting.

    • SlickMick on 16/12/2015 - 11:48
      +1

      Isn't the term of a payday loan less than a month (i.e. until next pay day) rather than 30 years?

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