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Home Loan Refinance Deal - $500-$1,000 Extra Broker Cashback on Top of Any $2,000-$4,000 Lender Offer @ Integral Loan Solutions

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Providing an update on recent lender changes this last month and what the majority of my client base has been doing this past month.

You can book an appointment straight into my calendar - https://calendly.com/adrianplayermortgagebroker/15min

Ability to settle before Christmas Please consider the banks start allowing Christmas leave from the 15th to the 20th of December. So you need a bank to settle in 2.5-3 months max or less. Also fast refi banks like Suncorp Westpac St George dont need the other side to book a settlement date. So avoid extra delays coming to Christmas. You can also send a discharge form early to your bank so they dont delay settlement. Most need 3-4 weeks notice to settle.

Interest rate changes

Westpac group increased 2 and 3 year fixed rates 0.10% around 4 weeks ago(Then dropped them back down for 70 and 60% lvr clients which was a little unusual) + NAB 2 and 3 year fix followed 2 weeks ago(Then brought in a lower rate for 70% lvr or lower category) + CBA followed the other 2 on 2 and 3 year fixes. All 4 and 5 year fixed rates went up around 3+ months ago. Main reason for this is the 0.10% funding costs the rba and government gave the banks through covid19 which was removed in June 2021.

As general commentary: Things are changing in covid19 times especially during lockdowns in the last few months

  1. Self employed lending is getting tougher. A lot more spot checks on bas or 6 months business or asking for accountants letters or 2021 projections at multiple lenders. Some lenders have industry exclusion lists like retail aviation and gyms etc

  2. Some lenders are implementing debt to income ratio limits like citibank max dti is 6 now.

  3. Ive noticed increased scrutiny in bank assessor questions on payg contractors and term left on the contract across multiple banks.

Big changes this month

  1. Me bank 3k rebate
  2. AMP 3k rebate and drops 2 year fix
  3. Westpac drop in 2 year intro rate variable products
  4. BOQ drop variable products
  5. BOQ brings in a 85% no lmi product for fhb's similar to st george
  6. Adelaide bank drops variable rate - how ever no rebate

Lenders

AMP 1.84% 2 year fix comp rate 2.63% + 3k rebate for over 500k balances.

ING 3k rebate for balance over 500k - top 3 lender recommended for over 500k loan size. 1.84% 2 year fix owner occ comp rate 3.73% investment 2.34% 2 year fix comp rate 4.35%

Suncorp A lot of large loan size refinances going here and purchases. 3k rebate for over 750k loan size. no annual fee for life saving 375 annually 1.89% 2 year fix 2.85% comp rate, special first home buyer products. Investment fixed rates 2yr & 3yr P&I 80% LVR @2.28%.

Investment fixed rates 2yr & 3yr IO 80% LVR @2.49% comp rate 3.22%. GOLD level status with Suncorp which means i get quick sla's and service levels here.

Me bank min requirement 250k 3k rebate 2 year fix 1.89% comp rate 3.20%. Since Suncorp is above 750k loan size and ING & AMP is above 500k loan size me bank is getting 250k to 500k loans for refinances of late.

Westpac 3k rebate flat now - More loans going here this month. A little quicker on sla now 2 months for a refi. Gone hard on the variable.2.09% 2 year intro rate variable deal 70% lvr 2.62% comp rate. Volume has eased here. Used to send multiple property refinances here. Now not as much.

Citibank - Most of my 2+ property refinances are going here due to great rate on both sides + good rebate and low fees. 2 year fixes on owner occ and investment 350k+ or above is going here. 6-8 day sla.

3k rebate 350k to 750k and 4k rebate for 750k + loans for refinances and purchases. (Extended rebate campaign for Sept+ 2021) This makes the majority of citibank variable rates in the top 3 best on market right now. Once you account for the refinance rebate its best on market. Has the lowest 2 year fixed rate on market for investment on P&I and IO. 2.19% comp rate 3.04% P&I and 2.39% io 2 year fix comp rate 3.32%. owner occupied 1.89% 2 year fix 2.71% comp rate. Citibank is now owned by NAB.

St George - 3k rebate flat now - Still slow sla ie 2-3 months to refinance, Volume has eased here. 1.94% 2 year fix comp rate 3.38% improved after pricing request. Drop by 5 basis points if tis 60% lvr as well. 2.24% 2 year fix investment P&I comp rate 3.89%. Drop by 5 basis points if tis 60% lvr as well. Used to send multiple property refinances here. Now not as much.

BOQ 2k investment purchase rebate started last week. Some smaller 250-350k loans are going here due to the 250k requirements for the 3k rebate. Buy before end of November. Increased their 2 year fixed rates last month. Not as competitive as ing and suncorp now for refinances. Better for investment purchases sub 80% lvr. Big mover on variable rates 2.03% variable 2 year intro rate 2.20 comp rate + 3k rebate for refinancing.

Bluestone Getting the majority of my low credit score / poor repayment history deals here due to prime product rate and no credit scoring and no comprehensive credit reporting ie they dont call your old banks to see how poor your character was there. 1 day sla super quick. 90% no lmi product.

La trobe SMSF deals mainly

Firstmac just brought out a smsf product at 3.99% rate which means it smashes the majority of st george and westpac deals written in the last 5 -10 years that couldnt refinance. There is a large amount of smsf home loans sitting on 6-8% that have been unable to move for a long time. And due to limited products in this area a lot of refinances are going this way saving clients sometimes 2-3% which adds up over the long term. 4.02% comp rate. Im surprised the SMSF market hasnt jumped onto this.

Self employed only ANZ and CBA i wont send normal full doc self employed to any other banks at the moment due to issues lenders are causing. Including self employed contractors on rolling contracts.

Low doc and no doc self employed Resimac and i have 1 other lender on a sub 3-3.50% rate with accountant sign off depending on lvr.

Pre approvals Mainly using ING / Suncorp of late due to over all rates and a quick sla. Ive got a list of 10+ lenders with good sla's and rates right now. Avoiding the slower lenders for pre approvals due to cool off and closing issues.

Construction Im getting the majority of these done with Advantedge - white labelled nab / Suncorp / Me bank / Westpac quick sla good rates and not causing issues on valuations and construction process.

Refinance rebates min loan size for most of the offers is 250k
ING 3k rebate - loan size over 500k
Bankwest 2k
CBA 2k
NAB 2k
AMP 3k over 500k loan size
BOQ 3k
Westpac 3k
Me bank 3k
St George 3k
Citibank 3k 350k loan size to 750k and 4k for balances over 750k under 80% lvr purchases and refinance
ANZ 3k
Suncorp 3k over 750k loan size + no annual fee for life saving 375 annually

Other rebates for buyers

Citibank - 3-4k purchase rebate
BOQ - 2k investment purchase rebate
Suncorp - Lifetime annual fee waiver for buying

Broker Cashback $500 for balances between 300k and 700k net of offset & $1000 cashback for balance over 700k net of offset. Broker rebate paid post settlement normally 2 months post settlement.

Types of clients suitable on a plus 3.00% rate? or havent reviewed your mortgage in 18-24 months?
We are looking for clients that are seeking a broker relationship that will be reviewing their position every 2 years to make sure its competitive to the market. Not suitable for fully offset clients.

We are also looking for long term relationships with clients, if you intend to refinance again or sell within 12 months, the banks actually claw us back on our upfront commission completely so we would be unable to help in these circumstances. I will do my best to reply to all comments.

My experience 7 years in commsec and cba on a margin lending desk and as in in house cba branch home lender. 4 years as a mortgage broker running my own company.

You can book an appointment straight into my calendar - https://calendly.com/adrianplayermortgagebroker/15min

Kind Regards

Adrian Player | Director

M: 0416643638

E: [email protected]

W: www.integralloansolutions.com.au

Adrian Player is a credit representative (498364) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237).

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Comments

  • Great summary! Might touch base in 2-3 weeks. Many Thanks.

    • Ok no worries send me an email or a pm here in oz bargains. Happy to help.

  • “We are looking for clients that are seeking a broker relationship that will be reviewing their position every 2 years to make sure its competitive to the market.“

    Can I ask how is churning so openly encouraged? Wasn’t there a royal commission into churning clients for commission frowned upon by ASIC?

    • Reviews every 2 years. Not moving clients every 2 years. But its sad to say there there has been a very big increase with clients moving every 12 months or even quicker. And yes i get many clients that contact me that have already moved twice within 2 years and want to move again. Then when i explain the problems they start facing after the 3rd time its like no one else has every told them this before. You cant manage a 25-30 year mortgage on a yearly or elss basis.

      • Just to clarify from your perspective - refinancing 3 times inside 2 years will potentially cause issues, but doing it once every 3-4 years is fine? I've done two refinances in the past 10 years and looking to do another one shortly.

        • Every 2-4 years is definitely a safer zone to play in. Send me a pm if you need any help.

        • I’ve had no issues refinancing every 3 months

          • @El-Rhi: initially yes longer term you will run into problems.

      • What sort of issues do you face?

        • Every bank has a risk frame work and set of rules with how their assessor assess a clients profile. They also use things like the 5 c's of credit and one of those c's i character. Character shows in repayments on time, no defaults, not too many liabilites, how many credit enquiries over a 5 year period, how many times has a client moved their mortgage over that 5 year period. Things like this. It tells a lender what type of client they are dealing with. No bank has a static rule for each of this but after grouping it all together it shows the type of client.

          What makes this even more grey is a bank can decline for any reason they want. And ive seen occasions when they didnt even give the specific reason why they declined. Or you know the reason they gave was not the true reason why.

          So all i can go off is my experience and past history from my book and my colleagues brokers books.

          We've seen.

          1. More then 22 credit enquiries over a 5 year period cause issues
          2. Declines for character on a 3rd refinance within 2 years
          3. More then 3 missed repayments over the statement period cause issues.

          But the major problem some clients havent considered is if you take a cashback then move quickly, some banks have lists for clients like this. If you ever try and deal with them again they flag your profile. So yes you can do it multiple times no issues but then it starts limiting your lender choice since only 6-8 banks regularly do cashbacks.

          I hope this reply helps you.

          • @Adrian Player: but, it is not personal, it is just business, hey?

          • @Adrian Player: Thanks for providing your insight on this. I was thinking of starting to switch again but think I'll stay with my current product because of your experiences. Didn't realise it was frowned upon.

            I thought based on marketing I've seen it's encouraged to keep switching.