Just submitted an application for refinance. After a collecting $4k cash back from a different lender will probably leave the loan here for now.
5.59% Variable Rate for LVR <80% (CR 5.50%) discounts by 0.01% each year, no offset account but redraw available according to the website.
They also mention no fees. Haven’t used them before but it seems like a good deal if you don’t need an offset account.
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I’m guessing if you try to refinance from CBA to Unloan your application will get rejected as CBA owns Unloan.
One of my mates did that no issues
Why would they reject it? That's like going from nab to bank. Different business entity, your choice.
Guessing wrong. I refinanced from CBA a few months ago and had no issues. CBA did call me when they received my loan release request to ask why I'm going and tried offering me a different rate but they couldn't/wouldn't match Unloan.
I got mine done. No issues.
I went through the refinance process, was smooth and nicely done. Didn't end up moving as my lender, homestar, offered to match the rate, which ended up being not as good as is expected as unloan delay adding a rate hike so as to seem better than their competitors for a period. Homestar has been easy to deal with so far.
While they are delayed in hiking the rates (by few weeks) they are still cheaper than others, or at least are cheaper than my previous lender (CBA).
We went from CBA to Unloan. Nothing changed in terms of using CBA debit cards and getting our pay on CBA.
No cashback and no offset :(
I learnt that that there may be tax implications if you withdraw money from your redraw on an investment loan though
You're correct, deductibility for tax is determined on what the funds are used for. If you put your money into a loan, and then redraw the funds for personal reasoms the interest on the redraw is not deductible, and that portion of the loan is always non-deductible
With an offset, the original loan remains intact, the funds in the second account merely reduce the balance you are charged interest on. Using funds from the offset does not taint the original loan's tax deductibility
@RMBC: How about if I refinance my investment loan and use the equity from the investment property to buy my own home?
Are the interest still be fully deductible with the investment home loan?
@pearl2013: Nope, as the funds were used to buy your personal home, the interest wouldn't be deductible
I second this as no interest charged on the extra repayment.
Just need to make extra repayment and the interest only charge on the balance minus the redraw available.
I am an unloan customer.
Looks like they also don't have a Interest Only option?
That’s right, only P&I. I recently called them to ask.
In the unlikely event that you get scammed by hackers that steal money from your redraw, the only way to communicate this issue is via web chat…
On a joint account redraw requires authorisation by both accounts for added security.
Two to sign is always a smart idea.
Even if the scammers somehow gained access to your Unloan account, the redraw goes to your primary bank account (from where your loan is auto debited). So to actually get the money they would need to hack your bank account too. That's a lot of scamming/hacking to do.
Mixed reviews online about customer service and advertised rates.. can any current customers share their experience here?
I'm ok with them and everything is thru email
Very easy refinance process. Everything is done online and identify verification via smart phone camera. Interest rate for existing and new customer is the same.
https://www.firstoptionbank.com.au/home-loans/
5.49% OO PI 60% LVR
5.74% Inv PI 60% LVR
And, i had a rep call me up - The personal service of a credit union.
1) Variable interest rates are current at 11 May, 2023 and may change depending on the current economic conditions.
So they haven't added the June rate hike in yet, why?
To appear better of course!
And then SNAP the jaws of rate hike
I love their website and they were one of my options when I was refinancing a few months back but ended up with ANZ (4K+offset). Will hold and observe for another 6 months and Feb-Mar next year will see where things are at.
Do you guys have a website where one can compare bank deals for taking out a NEW home mortgage?
Or are brokers the best way forward?
I don't think a broker would use Unloan.
Thought I’d give an update, Refinance approved today very fast turn around. You can talk to them via txt, email
And if they need more information they will call you.
Overall pretty good service I just hope they don’t jack up
The rates.
As per @happyadventurer’s comment interest rate for new and exisiting customers are the same. They told me the same too before. Hopefully this so true as this means that they can’t jack the rates up as they wish unless it applies to both new and existing customers.
My mate has been with them for couple of months now and he mentioned his rate is going to be 5.74% from 5.59%.
So I wonder if the new rate is only going to apply to existing customers. If that's the case, I'd think twice before refinancing because the low rate might only be there to attract more business
Interesting.. do you know when the 5.74% rate will be effective from? It’d definitely make me think twice if it applies only to exisiting customers.
Applies to everyone from 11th August. They just published on their website.
Yes apparently from tomorrow, but don't know if it is for everyone because cannot see that published on their website anywhere as @LendingWorkshop said above
I just opened the website and saw a pop up message at the top.
“Our interest rates will increase by 0.15% p.a. on 11 August 2023.“
Of course they have the right to, but anyone know or guess why they have increased their rates independently of the RBA?
Maybe the extra profit from the 24 basis points and smaller loan book is more than the forecasted profits from new and existing loan books at 5.50% p.a.
I was going to refinance to unloan once I did my tax returns, but there's no point now as it's effectively the same.
I'd be pretty pissed off if I did after paying the discharge fee from the current lender.
At least I know my current loan is nearly the cheapest on the market.
do you mind telling us which lender you are with? cheers
CBA 5.76% p.a. with offset
I’m going to try to bluff them that another lender offered me 5.49% and see what they say lol
I can’t be bothered with the rigmarole of refinancing, but won’t tell CBA that.
And its backed by CBA. No sure if you can use their branch and services though.