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Gateway Credit Union 3.98% P.a. (4.28%p.a. CR) and with 0.15% Monthly Cashback @ Mates Rates Mortgages

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Gateway Credit Union 3.98% P.a. (4.28%p.a. CR) and with 0.15% Monthly Cashback @ Mates Rates Mortgages
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Store RepLfinancialfreeway on 04/04/2016 - 11:04 matesratesmortgages.com.au (153 clicks)
Last edited 04/04/2016 - 11:58 by 2 other users

Mates Rates Mortgage Brokers offer a CASHBACK service that credits 100% of the monthly lender paid commission back to the borrower helping them to potentially save Tens of Thousands of Dollars over the term of the loan.

Gateway Credit Union is running a special 3.98%p.a. offer for a ‘Limited Time!’

When this loan is applied for through Mates Rates you also obtain a monthly CASHBACK of 0.15%p.a. credited monthly which if left credited to your home loan also saves compounding interest charged to your loan.

  • Comparison rate: 4.28%p.a.
  • Establishment Fee $149
  • Annual Package Fee: $299
  • 0.15% is of the outstanding loan balance per annum (credited monthly).

Other fees

Financial Cashback Home Loan

Related Stores

Mates Rates Mortgage Brokers
Mates Rates Mortgage Brokers
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closed Comments

  • flashi007 on 04/04/2016 - 11:08
    +4

    Sounds too good to be true - whats the catch??

    • battler on 04/04/2016 - 11:21
      +3

      OP has not mentioned the comparison rate. deliberately?

      Given that lenders are legally required to display a comparison rate when advertising any loan, and OP is associated (ie, they are the lender), then I am negging this deal for the OP failing to provide FULL information.

    • neil on 04/04/2016 - 11:25

      I'm guessing this is the loan (ignoring the rate on the page).

      Comparison rate would at a guess be slightly higher.

      See their previous deal combined with ING. You should be able to plug in your figures into the spreadsheet there.

      • dealsxyz on 04/04/2016 - 11:45

        What's the annual fee? It has to be considered in calculation.

        • neil on 04/04/2016 - 11:57
          +1

          >Annual Fee None

          EDIT: As below, it's a premium package so $299.

  • Krazyy on 04/04/2016 - 11:25

    hmm yeah scary.. why no more info? sounds great though if it checks out to be legit…

  • pointless martyr on 04/04/2016 - 11:32

    Seeing as OP joined nearly 5 months ago, its good to see they spent the time perfecting the use of bold and CAPS before making their first post today

  • [Deactivated] on 04/04/2016 - 11:32
    +2

    I love the bold text and quotation marks, reminds me of Lionel Hutz - Works On Contingency? No, Money Down!

    • pointless martyr on 04/04/2016 - 11:38
      +2

      Nice one….but i think your scepticism is unwarranted - you definitely might potentially save Tens of Thousands of Dollars, possibly for sure!

      Youd be stupid NOT to get this deal

      • tomleonhart on 04/04/2016 - 14:29

        Can't tell if you're being sarcastic ? lol

  • ozzie13 on 04/04/2016 - 11:53
    +2

    Listed here so rate at least appears correct:

    https://www.gatewaycu.com.au/home_loan_interest_rates/

    "SPECIAL PROMOTIONAL RATE+: Owner-Occupier only Variable Rate up to 80% LVR: Rate: 3.98%p.a. Comparison: 4.28%p.a."

    Annual Package Fee
    Payable at settlement and then again on each anniversary; charged to loan account unless otherwise agreed
    $299

  • dealsxyz on 04/04/2016 - 12:04

    "Premium Package Loan Redraw and/or 100% Offset available"
    Possible to have both redraw and offset?

  • Krazyy on 04/04/2016 - 13:17

    how does this compare to neritas recent deal? https://www.ozbargain.com.au/node/238779

    • dealsxyz on 04/04/2016 - 13:53

      naritas don't give trailing commission cashback. also Bank Australia will charge you fee for each redraw. Not sure about this great deal.

      • Krazyy on 04/04/2016 - 13:54

        yes however, naritas offer is a lower C.R % and hence it should work out cheaper in the long run? or no?

        • dealsxyz on 04/04/2016 - 13:56

          I would suggest to use this spreadsheet:
          https://docs.google.com/spreadsheets/d/1jOMSIpmRDGdmAOCh5ixi…

          This will give you an idea the cost and benefit after cashback and fees over the life of the loan. Comparison rate is confusing and misleading.

        • Krazyy on 04/04/2016 - 14:06

          @dealsxyz:
          Is there a list of current offers that offer that cashback? seems to be the better way to go!!

        • naritas on 04/04/2016 - 15:14

          @dealsxyz:
          That spreadsheet you've linked appears to be for an entirely different deal and includes an additional rebate on offer from ING that is not on offer from Gateway CU. It is also somewhat misleading for the following reasons:
          a) It does not appear to accurately reflect the aggregate cost of MatesRates $10p/m administration fee that they charge on top of the annual fee of $299 that Gateway CU charges for this product.
          b) It does not take into account establishment fees (AKA application fees) or loan exit costs.
          c) The rebate calculation assumes that the borrower is not making any lump sum additional repayments on their loan i.e. 0.15%p.a. rebate is only paid on the outstanding balance of the loan - so you are not guaranteed 0.15%p.a. of the original sum advanced, in fact, if you make any lump sum reductions in the balance outstanding you will receive a lesser dollar amount than what is quoted in the sheet over a period of a year.
          d) It assumes that the variable rate will remain constant. A calculation of future savings for a variable rate is inherently risky. No one knows for sure that any lender will maintain their price in future and deliver the lifetime of interest savings being claimed by that spreadsheet. These forums are literally littered with complaints to do with lenders who increased rates after promotions. In fact, the ING promotion you listed was one such promotion where this happened. It soon went up 18 basis points after the promotion was listed to 4.17%p.a. and is now hovering around 4.1% - which means that a person who had the choice of a $1000-2000 upfront rebate at that same point of time would've possibly been better taking that rebate and giving themselves the option to refinance sooner rather than later when something better came along.

          Hope this helps.

        • dealsxyz on 05/04/2016 - 10:08
          +1

          @joshuah:

          Found a website showing list of brokers with cashback:
          http://cashbackmortgagebrokers.com.au/find-a-cashback-mortga…
          I think bsmart, universal integrity and mates rates are all the same broker just under different name. Kind of like ourdeal.com and groupon.com.au are under the same company.

          Also might want to check out:
          https://cashbackclub.com.au/home-loan
          Seems to have few lenders.

          Amount of upfront commission and trailing commissions from lenders:
          http://master.connective.com.au/flex/commSchedReport.asp

        • Krazyy on 05/04/2016 - 11:54

          @dealsxyz: Thanks!!

      • naritas on 04/04/2016 - 14:39

        @dealsxyz:
        Hi dealsxyz, there are definitely no redraw fees or annual fees associated with our Bank Australia offer when the redraws are performed online via netbanking (as opposed to in branch)
        Hope this helps :)

  • CacheHunter on 04/04/2016 - 13:46

    No mention of any refund of the up front commission paid to brokers. My understanding is that it's normally 0.6% of the amount borrowed. Other discount brokers refund a portion of both the upfront and trail commissions, though I haven't seen anyone refund all of both.
    If you're likely to refinance in a few years, you may be better getting part of the up front commission back instead. Check the forums for some other refund brokers. Annoyingly, very few post their rebate schedules online.

  • MarketingMRMB @ Mates Rates Mortgage Brokers on 07/04/2016 - 10:57

    dealsxyz - That is correct Mates Rates provide an Anti Bias Guarantee to ensure that we are paid the same 0.65% as you have indicated regardless of the lenders
    recommended. This is to provide the assurance to our clients that no lender is excluded from recommendation because they don't pay enough commission we are
    not only recommending loans that pay the highest upfront commissions.

           In fact the higher the commission the lender pays the more our clients benefit, unlike other mortgage brokers.

       Cheers,
       Mates Rates
       Turning Home Loans into Real Cash Savings!
       Same Loan, Lower Cost!
       1300 55 81 61
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