All Topics / Finance / Non bank Lenders Good or Bad?

Viewing 20 posts - 21 through 40 (of 48 total)
  • Profile photo of Dr FinanceDr Finance
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    @dr-finance
    Join Date: 2006
    Post Count: 2

    Hi Zorne, I also work at Power Loan and reguardless of what other people have said, I can assure you that this is a highly ethical company, and you should continue going to the Power Money Course, as this is THE FIRST TIME THESE COURSES HAVE BEEN IN ACTION.

    As you can tell Matt the branch Manager does not sell anything, he is focused on explaining the myths behind the finance industry.

    I encourage that you get in contact with your service manager, and or the Branch Manger to discuss any issues or confussion…

    Once again thankyou Zorge.

    Profile photo of ZorgeZorge
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    @zorge
    Join Date: 2006
    Post Count: 32

    After a few seminars of Money Power Game Course a lot of thing became so explainable

    One of the things is a pitch on what is the interest rate.

    This is similar as when you sell car one of the major criteria is kilomiters this car made but in reality we shoul have a look at condition of the car.

    Most important thing everybody should understand is cost of a loan and not be so conserned about interest rte. However it is important but not vital!!!

    Banks do more profits on fees and charges which rise all the time.
    Even for customer service you have to pay 17.50 per 15 minuts for a chat over the phone with someone probably from india who is not even close to your finance at all.

    Power Loan is different in this manner and very positively different.

    As I said before everybosy have a power of choice.

    and second read everything what is writen in a fine print

    the moste important staff is in fine print in the end of each document[cigar]

    Profile photo of Jace81Jace81
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    @jace81
    Join Date: 2006
    Post Count: 4

    I left after the westpoint crash, i didnt feel comfortable working on the expos, often having clients telling me they were caught up in it, although i do not believe powerloan was at fault and unfairly named in the media, i do feel there is a lack of communication in the risk of this kind of investment , they have a very high return to cover the borrowing cost and the people who are being sold these products really should have a highly sufficient income to be able to cope with such a problem, its borrowed money ya know? the “what if” needs to be explained.but again i dont know what is said behind the financial planners doors, i just know what i was told to say…powerloan is highly ethical and has a great environment, i read someone else on this forum say “its easy to get caught up in”.

    Profile photo of paulmeesepaulmeese
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    @paulmeese
    Join Date: 2006
    Post Count: 26

    Hi Zorge

    As a finance consultant my self i am of the opinion that this game is all about relationships and what i as a broker/consultant can do for my client.
    The bank ,interest rate and loan is not the most important issue as there really isn’t a bid difference between lenders and as i have found non bank lenders and wholesalers can be a great deal more flexible and a good portion of these funders are backed by some major organisation
    If a lender is going down the tube they will sell off their loan book to another institution so don’t be to concerned with that.

    Paul Meese
    Onyx Finance
    [email protected]
    0412 850 820

    Profile photo of realreal
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    @real
    Join Date: 2006
    Post Count: 2

    Hi all,
    I beleive it is not about Bank VS Non Bank, it is about Product VS Product!

    I am an ex-Power Loan Branch Manager and Senior Service Manager that created a good client base and went on confreneces , etc. over 2 years, so I am very qualified to know what really is behind Power Loan.

    The real deal is this: The Power Loan product is no better than any other on the market (There are many at better rate and same flexibility) . They cannot compete on interest rate, that is why they don’t focus on it. The main product is Interstar, which many brokers also use (at lower rate mind you) yet Power Loan consultants are “conditioned” to saying Brokers are crooks! Is that ETHICAL?

    It is service that they push, but that really depends on individual franchisees. I can tell you some are good and some are not! Most have had no previous experience in finance and are conditioned to beleive Power Loan is the best thing since sliced bread and if anyone says otherwise, to squash them straight away!

    (You watch all the new Power Loan consultants try quash this posting) – see if they are still there in 12 months though and talk to them then.

    Not picking on Jace, he is probably a nice guy and told it as he saw it and good on you mate, but Steve from MM Market pointed out some real ALARM bells. This is typical of the inexperienced consultanat they target to sales training!

    Power Loan portray an ethical environment but if you ask questions or think for yourself you are quickly told to tow the line and have blind faith.

    Don’t get me wrong, at the end of the day I learned something of finance sales ( not much about finance, that I now know ). It is a good business and the loan is fine, but the point is, it is definately not always best for the client!

    Only an independant broker can find a better product for a client. Power loan only have one product, because they have to appease the “Packer” (Challenger) group of companies, therfore cannot use other non-bank lenders or banks.

    Power Loan consultants are taught to say that ” Interest rate is not the major cost of the loan and that banks fees and charges account for almost half the true cost of the loan” 50%? ? NOT FACTUAL!

    I bet not one of the consultants put this into a spreadsheet to find out how wrong this statement is. Try using facts: put $10 p/m fee and add in a transaction fee or two and even a redraw fee here and there see if .5 % interest rate discount would well outstrip the negatives of the fees over the term of the loan.

    I don’t like fees either though. Check out the loan products below that don’t have any fees or charges ongoing and are more flexible (some no app fees or val fees either).

    Power Loan charges $660 app fee half goes to account manager and half to consultant – fair enough! But $275 Valuation Fee? (of which $55 goes to consultant) therfore their valuation fee should really read $220 – (Missleading! ) which is still quite high!
    I’m not sure what other deal they have with valuers, but I know the valuer only gets about $60 -$100 dollars of that.) ETHICAL?

    I beleive most of the franchisees and consultants are ethical and good people, but the the company itself you eventually find out is less than ethical. I could tell you much more bit I won’t……. Let’s move on:

    Every client has different circumtances, so how can one loan be good for all? Power Loan best rate: 7.45% Interstar
    Broker xyz 6.95 % Interstar, Broker abc 7.2 % (SAME LOAN) – but there are better loans out there too!

    …And debt reduction is not rocket science:
    Have your Pay go diredctly into your loan including additional funds, GST funds, etc, or have a true 100% offsett account and try and keep it there as long as you can. Don’t redraw and spend it!

    …That’s it, end of lesson! No need for 12 week sales brain washing sessions!

    Here is only a short list products that are currently hard to beat ( remember every client should have a fact finder done before offering any product options)

    ING Mortgage Simplifier 6.90% No fees or charges, no redraw fees.
    Homeloans Ltd 1-5 yr fixed (7.2% to 7.45%) with 100% offset Account! – no fees, no charges no redraw fees
    Macquarie 7.23% no fees, charges or redraw fees – with atm card -NO FEES at any ATM in Austarlia!, no min redraw.
    HSBC – have products in this category too! with high LVR’s
    Members Equity – even better rates
    HomeSide Lending
    AC Credit Union – good for families where servicabilty is tight.

    The list can go on.

    Remember go with a Broker you like and compare products to your circumstances now and in the future. Ask questions!

    Cheers,

    John 4 Real

    Profile photo of ZorgeZorge
    Member
    @zorge
    Join Date: 2006
    Post Count: 32

    Wow this is exactly what I was looking for.
    information from experienced people!!!
    power loan advantage is no ongoimg fees and charges this givesunvestors opportinity to create as many accounts as posiible fo free!!! including redraw facility and other!!!!
    It is a matter of relationships!!!! Not all banks will explain you things which poeple in power loan do explain you like to a baby!!!
    Service manager is service provifer first of all!!! I s i undrstood he is with you for a life time or until he sells his frnchise!!!!

    If you like to deal with this person and he is reliable then it is way to go!!!!

    for most of the people service is most important issue, Products are pretty all the same. So it is a matter of person rather then a company!!! It is easyer to do budiness with someone you like and trust

    there is alwase a choice

    remember this

    Profile photo of ZorgeZorge
    Member
    @zorge
    Join Date: 2006
    Post Count: 32

    ING Mortgage Simplifier 6.90% No fees or charges, no redraw fees.
    Homeloans Ltd 1-5 yr fixed (7.2% to 7.45%) with 100% offset Account! – no fees, no charges no redraw fees
    Macquarie 7.23% no fees, charges or redraw fees – with atm card -NO FEES at any ATM in Austarlia!, no min redraw.
    HSBC – have products in this category too! with high LVR’s
    Members Equity – even better rates
    HomeSide Lending
    AC Credit Union – good for families where servicabilty is tight.

    The list can go on.

    Remember go with a Broker you like and compare products to your circumstances now and in the future. Ask questions!

    Cheers,

    John 4 Real

    very good explanation of everything.
    Are you a broker now?

    which city you work in?

    Profile photo of ZorgeZorge
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    Profile photo of v8ghiav8ghia
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    @v8ghia
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    Post Count: 871

    I was going to point these links out to you and some other info on these guys when I read your first post Zorge, but refrained, as you seemed pretty keen on them, and not overjoyed when a few others who were in the know commented. Anyway, the way I see it for finance is this 1. BANK. If they are friendly and reasonably comptetitive, and you have an easy going relationship with the relevant person…go for it. it is amazing how much the bank will …ah ‘overlook’ if they are comfrotable with you. 2. NON BANK LENDERS. Most of these guys will try to be your ‘mate’, and if their figures look good, why not try one? Bit more personal in most cases.Wizard come to mind (Sorry…not affiliated with them, but they work so hard on trying to build long term relationships. 3, BROKERS. If you have a genuine guy/gal that has the attitude that while they make money they are helping people too, and enjoy it I think they would be hard to go past….obviously they will need to have access to a numbe of lenders to be able suggest a package for you. But brokers have to go through a lot of study before they can advise, and generally will be far more knowledgable than your standard bank ‘personal lender’. And….finally, all this talk about fees, rates etc etc. the AAPR (Annualised Annual Percentage Rate) or ‘comparison rate’ really does take everything into account, so as long as all other things are equal, the loan is right for you, and you are comfortable in dealing with the ‘lender’, the lowest rate (Comparison rate) IS the cheapest loan, regardless of fees etc. However, some of the loans with the lowest AAPR may not accept your application, so you try the next best/most suitable one. THIS is where the Mortgage Broker is a great idea. Just a side point, so many people talk about all the ‘bells and whistles’ on loans, but really, for investment purposes, most people wll only ever be paying interest only, and any ‘spare’ will often be going into another property…so my personal thoughts would be to keep your loan simple. a basic variable, or fixed, as you prefer. Now…..go and buy a house while they are cheap Zorge!. All the best.[suave3]

    Profile photo of reyvistoreyvisto
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    i use a lot of securitsed/wholesale lending myself, who provide rates below 7% and no ongoing fees… i dont need the access to wander down to a branch so why should i pay fees for services i dont want/need?

    go with what you’re comfortable with is my theory – some people like to use a big name bank because they “know” them, some people just want a loan with low fees and rates

    Alliance Finance and Property
    0405151645
    [email protected]

    Profile photo of ZorgeZorge
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    @zorge
    Join Date: 2006
    Post Count: 32

    Hello

    A lot of people like me who have limited knowledge about finance andwant to repay debt faster need advice and srvice.
    Otherwise you will need to pay additional funds for financial advice anyway.

    If a person and a company this person is working for, reputable, then it is good to have a consultant who will assist you with your loan repayments and other issues.

    There experienced people who can do everything themselves but this is not for everyone.

    Just a question: Does anybody familiar with Australian Capital Home Loan company???

    Australian Capital Home Loans

    Is anyone uses their services? Or used to use?

    Profile photo of CaramelBunCaramelBun
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    @caramelbun
    Join Date: 2006
    Post Count: 1

    THE TRUTH ABOUT POWERLOAN!

    Zorge – you asked for feedback on the Jenman links you posted regarding Powerloan & your request is my pleasure to bring to you.

    For fear of being prosecuted or threatened (which seems to be a common practice of powerloans) I will not reveal my sources to the following. Let’s just say that I know the company better than I wish I did.

    Firstly, I would like to confirm that every word spoken in the Jenman article (regarding the Westpoint debarkle) is the truth. Powerloan willingly “stole” money from their victims with their finance consultants acting as unqualified financial advisers in most cases.

    Secondly, make no mistake deceit is high on Powerloans agenda. Heed the warning of all the alarm bells that have been rung so far. Don’t make the same mistake as many before you have & are now regretting.

    Prospective employees & clients – DO NOT put your financial futures into the hands of Powerloan. Investigate thoroughly the creditability of the company & it’s directors first before doing any sort of business with them – it’s amazing what you can find out if you dig deep enough.

    To say that Powerloan is using exaggerations, dangerous half-truths and downright lies to create an appearance of respectability is an understatement! Anyone can create a good speil but the truth is their slogan should be “show me the money” because in reality – that is ALL they are interested in. They will tell you whatever they have to to get their grubby hands on YOUR money (don’t be fooled).

    Changes to the finance industry expect every individual Finance Broker to have MIAA accredition & a certificate 4 in finance. As far as I’m aware most Powerloan Consultants do not have either. In fact, most are just your average (albeit gullible) joes off the street needing no more qualifications than repeating the endless dribble, bank bashing & unethical practices provided to them by it’s so called uhumm “professional” directors.

    To all the Powerdrones out there – this is your WAKE UP call. I know you will find any of this hard to believe & will only find out that what I am saying is true if you ever become brave enough to break away from the Powerloan cult (I fell for the brainwashing also). But now my blinkers are off & I can’t believe how delusional I once was. I am now happier, healthier & much more financially better off since leaving this Powerloan. It almost destroyed my life but I’m ecstatic now to say that I am longer playing the HOMER CARD “DOH” & I am glad once again to be a DRONE in the real world (as stated in many training sessions).

    Profile photo of ZorgeZorge
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    wow.
    Whell this organisation as I see for people HOMERS who want to be a bit more informed about what is going on in the finance industry and everything is depends on a service manager you deal with.
    For many poeple it is a key to be a bit more swiched in to finance industr. Some simple staff which they are too lasy to read somewhere else is there.
    If people able to pay more and use some other different techniques to reduce their debt then they should consider this place. If they are finance gurus It only means that they know what they want and where to get it.
    If we want service we pay for service. If we don`t need service we go somewhere else. CHOICE is alwase there

    Profile photo of coopranoscoopranos
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    Zorg
    I dont mean this with any disrespect at all, but it kind of sounds like you are trying to sell yourself on it as much as anything else.
    I remember I had a car once that I purchased from a car yard. Everyone that saw it told me how it was a lemon and i had been royally ripped off. No matter what these people would say to me, I kept trying to tell myself how good a deal it was.
    It was very to step back from the situation and actually admit that I had purchased a lemon. When I did, I felt angry and embarressed, but at least I had seen the need to cut my losses before it really cost me big time.
    All Im saying is take a step back and look at the situation from a logical standpoint, and then listen to your gut.
    If your head and your gut are both happy, then you have nothing to prove or sell to anyone.

    Profile photo of ZorgeZorge
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    Quote:
    All Im saying is take a step back and look at the situation from a logical standpoint, and then listen to your gut.
    If your head and your gut are both happy, then you have nothing to prove or sell to anyone.

    Might you are right. But my mgut alwase 2 feelings. Remembers Casino black or whight? it is as simple as 50/50 and as difficult as take wrong yes or wrong no.

    Probably need more extarnal investigation…!!!

    Anyone could help???

    Thanks[fear]

    Profile photo of coopranoscoopranos
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    @coopranos
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    Mate I think people have given plenty of info on the topic to make a fairly informed decision.
    My opinion is that if you have a decision to make that you consider 50/50 then you dont have a decision to make – you are talking about investing, not gambling, and if a decision is 50/50 then you do not have enough knowledge of an issue to make an informed decision so you must err on the side of caution.

    Profile photo of Josh-PrestigeloansJosh-Prestigeloans
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    @josh-prestigeloans
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    Post Count: 62

    i havent seen the word Power Loan used in so many posts at once…If you sign up on this forum your either wanting help or like to give it. I am here to help people achieve their dreams, buying a house, helping them invest, what ever they need. i wouldnt be on here for any other reasons, i like to put myself in the client’s shoes and to think about what i would do in their situation.

    Honestly, i think this topic has been made to endorse the Power Loan Franchises and its employees.

    Cheers

    Joshua McEwen
    Finance Broker – WA

    http://www.prestigeloans.com.au

    Brokers Lic 1297
    Licensee Brett Christie

    Profile photo of fbd1fbd1
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    @fbd1
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    Post Count: 65

    Hi Zorge,
    I am surprised that anyone will give you advice when you are being so singleminded. When professionals offer advice (for free on this forum) it is a good idea to stand back and take it in.

    You are correct when you say that you have a choice. Everyone does and I hope that you can find it in your heart to be more open to responses. Everyone here on this forum (from my experience) is here to help.

    As always the best thing to do is shop around. Ask questions and then listen to their answers…

    Good luck
    Dianne Burns[blink]

    Profile photo of v8ghiav8ghia
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    @v8ghia
    Join Date: 2005
    Post Count: 871

    I think we can nail this topic shut now? Not that I am a moderator or anything, but I did give one reply that I hoped would be helpful, and others with more experience/finance wisdom than me have done similar…….what is that expression about a brick wall again? A local TAFE course in spelling or workplace communication will go no end to assisting with making financial and other decisions, then perhaps consider talking to some banks, well known non-bank lenders, or MIAA qualified Mortgage Brokers I reckon. That bottle of Shiraz beckons me to finish it…….. [offtopic][sleepyanim]

    Profile photo of Jace81Jace81
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    @jace81
    Join Date: 2006
    Post Count: 4
    Originally posted by real:

    Hi all,
    I beleive it is not about Bank VS Non Bank, it is about Product VS Product!

    I am an ex-Power Loan Branch Manager and Senior Service Manager that created a good client base and went on confreneces , etc. over 2 years, so I am very qualified to know what really is behind Power Loan.

    The real deal is this: The Power Loan product is no better than any other on the market (There are many at better rate and same flexibility) . They cannot compete on interest rate, that is why they don’t focus on it. The main product is Interstar, which many brokers also use (at lower rate mind you) yet Power Loan consultants are “conditioned” to saying Brokers are crooks! Is that ETHICAL?

    It is service that they push, but that really depends on individual franchisees. I can tell you some are good and some are not! Most have had no previous experience in finance and are conditioned to beleive Power Loan is the best thing since sliced bread and if anyone says otherwise, to squash them straight away!

    (You watch all the new Power Loan consultants try quash this posting) – see if they are still there in 12 months though and talk to them then.

    Not picking on Jace, he is probably a nice guy and told it as he saw it and good on you mate, but Steve from MM Market pointed out some real ALARM bells. This is typical of the inexperienced consultanat they target to sales training!

    Power Loan portray an ethical environment but if you ask questions or think for yourself you are quickly told to tow the line and have blind faith.

    Don’t get me wrong, at the end of the day I learned something of finance sales ( not much about finance, that I now know ). It is a good business and the loan is fine, but the point is, it is definately not always best for the client!

    Only an independant broker can find a better product for a client. Power loan only have one product, because they have to appease the “Packer” (Challenger) group of companies, therfore cannot use other non-bank lenders or banks.

    Power Loan consultants are taught to say that ” Interest rate is not the major cost of the loan and that banks fees and charges account for almost half the true cost of the loan” 50%? ? NOT FACTUAL!

    I bet not one of the consultants put this into a spreadsheet to find out how wrong this statement is. Try using facts: put $10 p/m fee and add in a transaction fee or two and even a redraw fee here and there see if .5 % interest rate discount would well outstrip the negatives of the fees over the term of the loan.

    I don’t like fees either though. Check out the loan products below that don’t have any fees or charges ongoing and are more flexible (some no app fees or val fees either).

    Power Loan charges $660 app fee half goes to account manager and half to consultant – fair enough! But $275 Valuation Fee? (of which $55 goes to consultant) therfore their valuation fee should really read $220 – (Missleading! ) which is still quite high!
    I’m not sure what other deal they have with valuers, but I know the valuer only gets about $60 -$100 dollars of that.) ETHICAL?

    I beleive most of the franchisees and consultants are ethical and good people, but the the company itself you eventually find out is less than ethical. I could tell you much more bit I won’t……. Let’s move on:

    Every client has different circumtances, so how can one loan be good for all? Power Loan best rate: 7.45% Interstar
    Broker xyz 6.95 % Interstar, Broker abc 7.2 % (SAME LOAN) – but there are better loans out there too!

    …And debt reduction is not rocket science:
    Have your Pay go diredctly into your loan including additional funds, GST funds, etc, or have a true 100% offsett account and try and keep it there as long as you can. Don’t redraw and spend it!

    …That’s it, end of lesson! No need for 12 week sales brain washing sessions!

    Here is only a short list products that are currently hard to beat ( remember every client should have a fact finder done before offering any product options)

    ING Mortgage Simplifier 6.90% No fees or charges, no redraw fees.
    Homeloans Ltd 1-5 yr fixed (7.2% to 7.45%) with 100% offset Account! – no fees, no charges no redraw fees
    Macquarie 7.23% no fees, charges or redraw fees – with atm card -NO FEES at any ATM in Austarlia!, no min redraw.
    HSBC – have products in this category too! with high LVR’s
    Members Equity – even better rates
    HomeSide Lending
    AC Credit Union – good for families where servicabilty is tight.

    The list can go on.

    Remember go with a Broker you like and compare products to your circumstances now and in the future. Ask questions!

    Cheers,

    John 4 Real

    Hey again,

    Guess im dragging this on but oh well :P

    You really do hit the nail on the head, i agree with pretty much everything you have said, i still feel the strategies are important and what powerloan promotes is offered by most financial institutions, but the awareness isnt there unfortunetely, the client has to seek out these options.

    the books powerloan turned me onto are great and i continue the read them, i always felt uneasy with in the company and count my experience there as a point of finding a great direction in my life.

    As an end to this topic, good luck to all you property hunters, hope those interest rates dont hurt you all to much. [thumbsupanim]

    Best wishes

    Jace

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