I just seen on TV that RateBusters has the best home loan rate around and they have won awards to, any info on them?
Hi passnby. Heard that they were getting that award yesterday. They are a cheaper 'internet' based loan company, or in other words, have no retail presence. If you are happy with that, comfrotable with finance, (ie are doing a refi or know what you are doing) don't need a branch to walk into, and don't plan on reselling the property anytime soon – maybe they are just what you need. On the other hand, why would you use a broker to get a rams laon if there is a rams branch near you somewhere? BEtter to deal with the source unless you are isolated somewhere or have other reasons. My opoinion only of course – if you know the Aussie guy, or already have established a good relationshiop with them, by all means, I retract my comment. Hey all the best.
just my 2c
I have chosen Ratebusters, although I haven't actually purchased a place yet so I don't have much to report except they have been helpful and fine to this stage (to pre-approval). I chose them because certain features of their loans will be useful to me down further down the track, rather than just the interest rates (though that helps).I am yet to come accross a situation where RAMS are the best option, given their very high break costs. If its for an owner occupier purchase and you don't intend to borrow anything else for 3 years minimum, they're probably OK. Same with Ratebusters I suspect. If you are an investor you will need flexibility moving forward, I would encourage you to have a good think about what you want to do over the next few years and reconsider if these products are most suited to you.
I am with Alistair i think to many clients run for the cheap internet style loans and then realise down the track that really these organisation dont really service all their investment needs.
If you are looking for a loan with a cheap interest rate for your PPOR and never intend to buy again or indeed move or repay the loan some time soon then sure they maybe an option but most people want to build a relationship with the lender and start to increase their wealth portolio as time passes.
I can't see too many reasons why you would go to Rams who mortage insure all of their loan irrespective of the LVR.
Richard Taylor | Australia's leading private lender
v8ghia wrote:don't need a branch to walk into, and don't plan on reselling the property anytime soon – maybe they are just what you need. On the other hand, why would you use a broker to get a rams laon if there is a rams branch near you somewhere? BEtter to deal with the source unless you are isolated somewhere or have other reasons. My opoinion only of course – if you know the Aussie guy, or already have established a good relationshiop with them, by all means, I retract my comment. Hey all the best.Hmm you raise some very good points. I dont really need a bank that I can just walk into, but in saying that, sooner or later there are going to be times when I need to speak to somone face to face, rather than sending doc's backwards and forwards. I think I need to find out where there is a RAMS near me, because im in the middle of nowhere.
The more you guys talk to me the more Im seeing that maybe rams isnt the way to go about this, I suppose I was just thrilled that a bank took me on with my defaults.PS: Whats LVR?
Aussie broker recommended RAMS to me, best rate, also Bank west and BO Adeliade very similar deal.
Highly reccommend an Aussie broker, they dont Bull Sh1t, straight answers, best deal, chances of approval told in 10 minutes. Not like my MUM and DAD, been with the same bank for 40 years, blah blah blah,
I got a home loan 14 months ago, and if i get another one for another place now, i am recommended 4 better deals from different lenders before using my current bank.
With the ease of internet banking and unlimmited free transactions, a different lender is not a problem, if i save $$ i will do it.As for Rams, my Aussie guy said, there a 2 other deals that are just as good, so it was my call, probably go Bank West as there is a branch near by, not that, that matters much these days.
If you wanna be ripped off, go for it. I reckon they should re-brand to RateBastard. At first it seemed their interest rate is not high but for the last couple of years, they raised the rate not a little slower than the big four did. If that's acceptable, be careful of their hidden cost such as deferred establishment fee, etc. It would cost you an arm and leg if you discharge the loan in 5 years (eg, you want to change a house, sell it or switch to other banks). Say if you have a 400K loan, they will charge you $4800 for the exit fee, not to mention you would have already been ripped off $2400 (0.66%) of application fee at settlement. Have you ever seen a loan with such high application fee? Yes, that's rate bastard.
Poor support, no face-to-face talk if you have problems, slow response… what can you expect for such a small company who have no idea of their tomorrow would be? I would never go to them again.
I went with RAMS as they were the only ones at the time we had to refinance that would lend to a trust as a low doc loan.
We are planning on building a granny flat on our investment property will the refinance with RAMS to get access to the equity upto the max LVR which was 80% last time. I have heard though that Westpac and possibly RAMS will be making it harder to access funds due to their massive growth in loans last year.
I would stay away from RateBusters.
There interest rate may look good now but that’s because they keep releasing new loan products with competitive rates and then raise the rates of there older load products with big rate hikes well over the Reserve Bank and the Big 4 Banks. Keep attracting new customers while existing customers pay extra and get locked in because of the huge break costs within the first 5 years.
When I first took out my load 3 years ago, my rate was .9% below the standard variable rate of the big 4, now its higher than the even the standard variable rates of the big 4 without even factoring the .5% -.7% discount you can always get on your rate with the big 4 banks.
My rate is currently 6.82% and they don’t even advertise a rate that high on there web site.
After being being with them for over 3 years I’m now looking at refinancing with someone else even tho I’m going to be hit with over $3000 in break costs.
RateInflaters wrote:I would stay away from RateBusters. There interest rate may look good now but that's because they keep releasing new loan products with competitive rates and then raise the rates of there older load products with big rate hikes well over the Reserve Bank and the Big 4 Banks. Keep attracting new customers while existing customers pay extra and get locked in because of the huge break costs within the first 5 years. When I first took out my load 3 years ago, my rate was .9% below the standard variable rate of the big 4, now its higher than the even the standard variable rates of the big 4 without even factoring the .5% -.7% discount you can always get on your rate with the big 4 banks. My rate is currently 6.82% and they don't even advertise a rate that high on there web site. After being being with them for over 3 years I'm now looking at refinancing with someone else even tho I'm going to be hit with over $3000 in break costs.Ive seen this happen a plenty. They have no control of their cost of funds. GE's 0.7% rate increase compared to the 0.25% from the reserve all over again. Then 000's to get out.
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