Home Loans Which One?

• 

  Yorkshire-Man on 04/05/2016 - 13:29

  We are with the Online Home Loan with Bankwest, its very competitive.

  However, the Sydney Property market seems to have just peaked (according to the data) so personally I wouldn't be buying yet, wait a couple of months. Worst time to buy is at the peak of a boom :)

• 

  mskeggs on 04/05/2016 - 13:37

  I suggest you talk to a broker, there are several respectable ones on this forum.
  If you are averse to that, try one of the comparison sites, CANSTAR or http://www.yourmortgage.com.au/

• 

  mskeggs on 04/05/2016 - 13:39

  If you have $600k in equity, it doesn't really matter if you buy now or later. If the market falls, so will your equity, if it doesn't your existing place will rise.

• 

  naritas on 04/05/2016 - 17:17

  +1

  Hi Obione, this week has seen some big changes so far as rates and products are concerned. After nearly a year of rising interest rates and no movements on the cash rate the RBA reduced the cash rate. A few of the major lenders have already capitulated and passed on the full decrease (of 25BPS). Most of the smaller lenders such as building societies, credit unions and small banks (where the real bargains have been had) are slowly updating their pricing. Expect most of them to announce new pricing within the fortnight. Unless there are some really shock announcements, one could probably expect to continue to find the best pricing outside of the majors. Our guess, at your loan size and LVR, that ~3.64%p.a. may be possible as a variable rate and that 3.75%p.a. may be possible for a 2 year fixed. The actual lender would depend heavily on your personal preferences i.e. if you want a 'free' platinum card, a large number of sub-accounts, etc.

  Regarding comparison sites, speaking from the experience of being credit advisers with a head office being based in a part of Sydney where the average loan size is $1mil+, we've noticed that the offers on comparison sites are not really aimed at borrowers at your end of the market. Such mainstream websites aim for the middle of the bell curve borrower with ~$350K loan size and really straightforward requirements. Someone like yourself will likely qualify for drastically different pricing to what is being advertised. You'll also probably notice that most of these sites refer heavily to the comparison rate (because it is an ASIC requirement). If you do decide to sort by rate your possible best off focussing on the headline rate given your loan size. Why? The comparison rate will be nearly irrelevant to you as it is typically based upon $150,000 loan size over 25 years (you're borrowing $1mil+ likely over 30 years). That's not to say fees aren't important, they are. But at $1mil loan size, a one off establishment fee or exit cost is way less important than at $150K loan size - so the comparison rates are going to likely overstate the relative importance of such costs given the scenario they are typically based upon.

  If you wanted some help with evaluating pricing and options for your scenario please free to send us a PM as we'd be happy to give you some tips.

  Hope this helps.

  EDIT: TL:DR Try some of the smaller lenders, regional banks and building societies. Companies like NPBS, Heritage, Bank Australia & Mortgage Ezy might be a good starting point depending on your preferences :)

  • 

    CheapskateQueen on 04/05/2016 - 22:44

    Where does one get 3.64%! I assume that's owner occupied. Still,investor rate can't be much more than that!

• 

  samprofs on 04/05/2016 - 23:00

  +1

  To be honest for most 'plain vanilla' clients (e.g clean credit rating, PAYG or 2 years of financials for self-employed) there is not much difference between residential lending products.

  I would always recommend something with a good flexible lending policy and simplicity.

  3.85%p.a (3.85% comparison rate) on Vow Home Loans powered by Macquarie Bank product is what is possible as long as it is under 80% LVR and P&I. Zero upfront fees, Zero ongoing fees, 24 hour turnarounds from loan submission, excellent customer service, 100% off-set account with unlimited free ATM withdrawals at STG/Westpac ATMs. It is also available for construction. The pre-approval is valid for 120 days with no need for re-verification (e.g payslips) within the first 90 days.
  Recently refinanced my own home loan to it.

  The reason why I rave about this product is that it has the credit policy/flexibility of a 'big bank'/Macquarie (e.g easy to qualify at 7.25% qualifying rate, simple top up/cash out process with ability to just state 'personal investment', quick turnarounds ) with the pricing of the smaller banks.

  You could also try and get pricing with your current bank. NAB, CBA and Westpac/STG will do some great deals AS LONG as you show that you are willing to take your business somewhere else.

  ME Bank (Flexiable Home loan product, especially good pricing on investment lending) and ING have some excellent products as well. ING probably better in terms of service. Suncorp at the moment is 8 day turnarounds.Would avoid. ANZ announced the 3.75%p.a on 2 year fixed as mentioned by Naritas, but would stay away from them. When you consider the package fee ($395 p/a) and their unwillingness to 'price' heavily compared to other big4 on variable loan portion… not worth it. Loans.com.au is also a good option. The off-set product rate is a bit higher than Vow Home Loans. However, if you prefer interest only then I think loans.com.au off-set product would be the cheapest option. Followed by ING Orange Advantage (ING announced a 25 basis point cut today). Hope that helps.

• 

  ozlab on 05/05/2016 - 10:42

  Talk to a broker that offers 100% cashback on trailing commission every month.