New to Mortgages - Your Thoughts on Banks and Loan Types?

PChinna on 25/09/2023 - 15:37

Hi all,

As a first time home buyer, I could use some advice on mortgages. My broker gave me two good options - Suncorp and UBank.

Which bank has better customer service in your experience? Suncorp is slightly cheaper with no annual fee.

Also, should I do a redraw account or offset account? My broker said they function the same - with redraw I can withdraw excess funds anytime through the app, while offset gives a separate account. The offset is a bit more expensive at 0.11% higher.

If anyone has thoughts on which bank and loan type you'd recommend, I'd really appreciate your input as I'm new to this.

Thank you!

Financial Home Loan

Comments

  • Duckie2hh on 25/09/2023 - 16:03
    +3

    Go for the cheaper option with an offset account. Offset is useful if your property ever flips from primary residence to investment.

    • djsweet on 25/09/2023 - 17:00

      I think the OP is saying the cheaper one is redraw, the more expensive is offset. I don't think you can "go for the cheaper option with an offset". If you could it would be a no-brainer.

      • cheesecactus on 25/09/2023 - 17:36
        +1

        I think he meant, "go for the cheaper account" (ie better rate, lower fees) and get an offset (so whichever is cheaper including an offset).

  • trustnoone on 25/09/2023 - 16:52
    +3

    IMO I like this video of Redraw vs Offset details assuming you may make changes to your investment in the future: https://www.youtube.com/watch?v=1zCti_DGMIc
    (not financial advice)

    • PChinna on 25/09/2023 - 17:14
      +1

      Thanks a lot @Trustoone that saved me.

  • garetz on 25/09/2023 - 17:07

    The fact that the broker says they are pretty much the same thing would ring alarm bells for me, it means they really don't care about you at all.

    It all depends on what exactly you want, the video above is very good and explains it plainly.

    • PChinna on 25/09/2023 - 17:15

      Yep, I do agree. Thanks. I will go with offset.

  • PChinna on 25/09/2023 - 17:20

    Any thoughts on Suncorp or Ubank?

    • soan papdi on 25/09/2023 - 18:27

      Add TicToc to your list. The bank of Adelaide interface is from the Stone Age but they’re an ADI, so your offset money is safe.

      PS: don’t feel obligated to choose what your broker suggested. If you. can get a better deal elsewhere, then get him to work with that lender or do it yourself. Don’t let them guilt you Into staying.

  • miwahni on 25/09/2023 - 22:05

    Suncorp usually answers the phone within half an hour.
    Ubank - yeah good luck with that. (your experience may differ).

  • jjjaar on 25/09/2023 - 23:32

    Which bank has better customer service

    Call them both. See how long it takes to talk to them. When they answer, say “I was testing your customer service to see if I want to be a customer”.

    • PChinna on 26/09/2023 - 07:14

      😊

  • GuyfromMelbourne on 26/09/2023 - 22:33

    Did you look at westpac/bank of Melbourne?

    Also, hope your broker is offering broker cashback. There are few on OB that offer broker cashback.

    Look up some recent financial deals and you should be able to find them.

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