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Freedom Lend Home Loans Variable from 2.79%, No Upfront Fees if Borrowing >$350k, Free Offset and No on-Going Fees

1820

Another lender passing on the full rate cut.
Freedom Lend - not as popular as some of the others but seems to be offering a great variable rate with an offset. Yes, you read it correctly - with an Offset.

Variable LVR <= 80% OO P&I = 2.79%; 2.79% Comparison Rate*

Features:
No Upfront frees if borrowing >$350k.
<$350k $385 application, $303 valuation & $330 legal fee.
Free Offset Account
Free Redraws
Up to 95% LVR
Split loan faciltity
Online lender
No discharge fees if greater than 5 years. $535 if less than 5 years.

Won four Mozo Awards 2019
Winner of Money Magazine Non-Bank Lenderof the year 2017,2018 & 2019

Australian Credit Licence 498325

  • As with anything do your own research and this product may not be for you.

For those playing at home

Athena 2.84%
https://www.ozbargain.com.au/node/486909

Homestar Finance 2.74%
https://www.ozbargain.com.au/node/486919

Ubank 2.84%
https://www.ozbargain.com.au/node/487030

Reduce Homeloan 2.77%
https://www.ozbargain.com.au/node/486902

Related Stores

Freedom Lend
Freedom Lend

closed Comments

  • how does this compare to homestar?

    • see this

      and you can see that you may rank the loans according to investor loans,
      but they don't rank the same for owner occupier loans, or if your LVR is greater than 80%, etc.

      just check the links and see all their fees, etc.

  • I wish I hadn't had fixed 70% of my loan. My bank won't pass the full rate cut and now I am stuck :(

    • +1

      But-surely you fixed it because you had to, based on your circumstances.

      • +1

        Damn right. Your comment had so much energy man

  • -4

    Do these smaller lenders allow the use of equity as a deposit?

  • +3

    Don't think I'm keen on having money in an offset with a non govt backed bank…Do any of these really cheap rates have the 250k govt backing?

    • +1

      Good question

      • +1

        Probs not.

        • You are probably right. Also how long would it take for the government to give your money back. I can't see it happening in days or a few weeks!

    • +2
      • +1

        Thanks. I didnt know this sort of thing exists. I just believed where I put my money is guaranteed/wont be gone if the bank goes bankrupt. Now I know.
        Just checked all the lenders recently posted here are not in the list

      • I was checking with ubank. They are part of NAB therefore they are covered under Australian government's deposit guarantee scheme as well together with NAB. However, the $250k amount covered is a combined amount, if you have happen to have transactions with both banks.

  • -3

    Is the money in the offset guaranteed? That was one of my reasons i moved on from loans.com.au.

    https://www.smh.com.au/money/planning-and-budgeting/bank-off…

    • +3

      Did you read any of the comments directly above yours

  • Who's the lender and holder of the offset account? Well home loans and tictoc both give mortgages via Adelaide and Bendigo bank which I gather are protected via the guarantee scheme, is this loan similar?

  • +2

    Since I am after an Investment loan (P&I, with offset and LVR ≤ 80% ),
    here are the current Investor loan offerings (NOT their comparison rates):

    2.99% Reduce Homeloan
    https://www.ozbargain.com.au/node/486902

    ^ this loan has a high application fee, whereas their $0 fees investor loan rate is 3.09%

    3.09% Freedom Lend
    https://www.ozbargain.com.au/node/487227

    3.14% Homestar Finance
    https://www.ozbargain.com.au/node/486919

    3.24% Athena
    https://www.ozbargain.com.au/node/486909

    3.49% Ubank 2.84%
    https://www.ozbargain.com.au/node/487030

    PS: No offset account offered for:
    - Athena
    - Ubank

    • +1

      Assuming that you have an owner occupied loan, I'm not entirely sure if the offset for the investment is worth it or even necessary. After all, you are meant to run your losses for the negative gearing benefits.

      • No, no owner occupier loan.
        I've got an offset to reduce the interest, because the goal now is to get out of debt,
        and then in a few years' time, I can then have less debt to then play/invest.

        ( Also offset account existed, in case, I needed those funds for medical reasons or sub-division plans, etc. )

        Right now, credit cards even reject my application, if they see I have loan + car lease + one credit card already.

        I could negative gear, just for tax benefits, but I just think that getting out of debt should be my goal now.

        After that, I can negative gear the 'next asset'.

        • +3

          I learnt that using other people's money over the last 15 years was the best strategy and not worrying about paying a loan off.

          Eg. Take a loan out to buy a property , sit on it and with the equity build buy another two properties and with the gain sell one just to use the proceeds to buy another three etc just to buy more properties. Meanwhile all this while you collect rent and negative gear any expenses and interest.

          • @MrBillions: i figured i would have the 'most equity', if i paid off the loan quicker.
            in last 2 years, lending standards got tightened and so i had trouble getting the second loan,
            even with excellent credit rating, property appreciation, etc.

            i also need to change the investment property into an owner occupier or sub-divide (after council amalgamations changed zoning/building codes),
            so the investment strategy changed somewhat unpredictably and so now, it's just making a house debt-free and then, i can borrow against the house and play with borrowed money again.

          • @MrBillions: We are trying to do this, but our only house we have has lost its value. Worth less than what we paid for, roughly 100k less, No equity here. :( not valuated but going from data of surround sales.

            So looking to hold onto it and save up for a deposit and try again.

            Do you live in any of the properties or do you rent while renting out those?

  • Noob question. Is there any risk in keeping a large sum of money in a offset account of a small vendor like Freedom Lend.

    I ask this as some loan agents and bigger banks ask whether I want to keep money in an offset account of a small player? Are there any safeguards and guarantees of these accounts similar to a regular bank account?

    • was thinking about the same question. Any expert around ?

      • Still looking for an answer. I found the following though.

        https://www.smh.com.au/money/planning-and-budgeting/bank-off…

        Based on this, it appears that the offset amount could be consumed into the loan amount. Not a bad thing but really defeats the purpose of the flexibility of the offset.

        So I am now wondering about the lowest offset loan rate available offered by a bank.

  • It is a good rate

    thanks for the post

  • Good rate but they wont let me have IO on my PPOR and require me to have a Financial Planner SOA to make sure my decision to use the extra cash flow to invest in index fund is a sound one. Like I'm gonna waste money to pay for someone to 2nd guess my decision? Wondering what reasons they would accept for IO. Any one cares to share?

    • They are doing this because royal comissions happen and people blame banks for their own decisions.

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