Hi,
I am planning to get a property and will need to get a home loan package.
Westpac quoted me 3.75% fixed and variable. They also recommended me a 100% offset account to go with it.
Is that a good home loan package? Any suggestions on how to structure mortgage accounts correctly?
Also, please let me know your recommendations on a better home loan package (low rates).
Thanks
Offset account never free. They will need to pay annual package or something like that. Usually around $400 a year. It may include a credit card for free.
you can get free with some providers, but the rate may not be as good. It all depends on your circumstances.
You need to dig deeper OP than the headline rate.
We run up all our bills on a CC. We have an offset account. At the end of the month, we pay off the CC completely from the offset account. ING if you are interested. Free ATMs etc.
There is no one 'right' or 'best' answer/mortgage.
PM me if you want a good broker suggestion
Sorry, I should put more info.
I can take up Premier Advantage Package which costs about $395/year. That package removes ongoing maintenance and redraw fees.
But how do you live? How does your money flow through your banks?
Don't post here, talk to https://www.equityvision.com.au/
Premier Advantage Package which costs about $395/year. That package removes ongoing maintenance and redraw fees.
I fly with qantas instead of scoot because I don't want to pay for baggage.
Get a mortgage broker.
Westpac quoted me 3.75% fixed and variable.
That doesn't sound right.
Why?
The home loan manager wrote that down for me.
They shouldn't be the same. The fixed is probably ok at a 2 year rate, but even their website seems to have a cheaper rate than 3.75% (assuming you are borrowing more than 500k).
https://www.westpac.com.au/personal-banking/home-loans/home-…
Sounds like he wasn't taking you too seriously to be honest.
Sounds like it. I will do more of my research on home loans.
Thanks.
I wouldn’t go with any of the big 4 banks.
Try get something with $0 fees, check comparison rates.
I’ve refinanced recently with Athena and they’ve been great.
Shop around and use a broker if you’re not confident to do it solo.
Good luck
I'm with Qudos bank. They offer 3.79% comparison rate, no fees, 100% offset account and redraw. If you want a CC they can do that free / cheap too.
https://www.qudosbank.com.au/Products/HomeLoans
What size loan are you after and do you have 20% deposit as that will affect the rate. Cheapest i can see on canstar is 3.48% comparison with offset and additional repayments.
I'm with them too. Other than a lack of branches, it's no fuss and no bullshit that you get with banks either. Also they've surprised me by occasionally ringing up and offering free tickets to shows at Qudos Bank Arena, like Pink, Foo Fighters and The Wiggles.
Wow now that is some extras!
Yeah. I won tickets to Shania Twain last year. I wouldn't say I was a fan but it was a fun night with free booze & food.
They've never actually rung me though.
I've been with them for 30 years and had 2 mortgages with them. The lack of branches isn't a huge issue. If you get a cheque you can bank it at the post office, everything else can be done over the phone (with a local call centre manned by people that can speak intelligible English) or with a secure email through their online banking.
They possibly aren't as good now as when they were smaller.
Have they increased their interest rates?
How long have you been with them?
Have they increased their interest rates since when?
30 years. They were Qantas Credit Union then and you could only join if you were an employee.
Hi,
What I meant was since a loan was taken out, have there been any out of cycle (not related to RBA interest changes) interest rate increases.
Thanks
@movieman: I've had 2 mortgages with them. Both went for about 6 years. There were no out of cycle interest changes. That was a while back though.
They've never had the best rates and they've never had the worst. There's probably a lot in what Hector says regarding fees v interest rate.
Did you apply through a mortgage broker or directly?
My mortgage broker said they haven't heard of Qudos bank before >.>
Thinking of whether to ditch.
Direct. Why go to a broker that will get paid a commission from the lender when you can search rates on Canstar.
I've been a member since 1989. They've been operating since 1959. They have $3.7 billion in assets.
https://www.qudosbank.com.au/OurHistory
The other bank you might try is Xinja but they will only start offering home loans later in 2019.
If you still want a good broker then I think Tim McGuinness is still at Aussie HL in Liverpool. he should be able to find something that suits your needs.
Fees are a drop in the bucket unless you're borrowing small amounts
* My offset account costs $400/year with AMP ($33/month to compare with the figures below)
* I save $1,600/mo + because of my offset
Interest rates matter more
* a 0.1% increase in my interest rate costs me $170/mo more in interest
* I'm often willing to swap mortgages because the discharge fees ($250-1000) are worth it
Check offset accounts are insured If you're going to go for an offset account, it would make sense to check that those deposits are covered by the bank's deposit guarantee scheme Eligible Institutions listed here. It only insures $250,000 but I think provides a bit of cover … This may rule out some smaller lenders (eg loans.com.au)
Fixed rates may have more penalties/fees Bear in mind that if you're in a fixed rate mortgage and want to change it, the penalty can be as high as the remaining interest to be paid in the term of the mortgage (!!).
I don't think the gap between fixed and variable rates is big enough to warrant fixing especially with 0.25-0.50% decreases in the RBA rate. Of course wouldn't entirely be passed on to consumers.
I don't know many people that split fixed vs variable mortgages seems like an extra headache
What I have : 3.69% variable o/o 30 year mortgage at AMP with 100% offset for $400/year.
Thanks for the details and advice on home loans.
How frequently does AMP change their interest rate during the period of your loan?
I was looking at Loan Studio as they are offering rates at 3.59% with 100% offset account. There are no annual and monthly charges but I am unsure if there are added costs for 100% offset account.
the bank will change the interest rate as frequently as they want. That's why it's called a variable rate.
You should disclose your calculation / situation
is based on $2m loan size
I hope you've got a buffer for any future interest rate rises. Not trolling or anything. The credit crunch during GFC and Euro crisis were shocks for people with big loans.
Where are you buying the property? In many places in Australia prices are tanking, so you might want to consider renting for a while until prices bottom.
Melbourne —> Eastern areas
I am a broker in Sydney and even if you have already engaged someone let me still suggest a few key issues for you to consider:
1) Please make sure you structure your loan and the title with the end in sight (i.e what you want to do with it in few years time)
2) LMI protects the banks not you.. so try and see if you can avoid LMI's.
3) In the current climate, if you look outside the Big-4 there are good deals available.
4) Try and see if you can take benefit of the lenders cashbacks on offer while also getting a good rate on your loan.
What fees have they included? Is the offset account free? Do you need it? (That is, can you get free redraws?)