Hi,
I bought my first home recently and trying to narrow down the financier. I am about to go with ING who are offering the fixed rate 5 years at 7.69(After a discount of .1%). When I am browsing through the infochoice website today, there came up 2 new financiers, CRYSTALCLEAR HOME LOANS & ELECTRONIC LOAN, offering 5 years fixed at 7.33%. Other costs are not differing much. I am just thinking of approaching these new guys. However, my worry is, as these are new guys we dont have a track record in the market and dont know how would they service in future. Moreover, after approving loan and everything what happens if they don't turnup on settlement day to pay the vendor? Should I approach or not !!??Can you please comment…
Be aware sometimes the rates maybe cheaper but there can be other hidden fees i am not familiar with those lenders you mentioned so not commenting on them in particluar. Further the rate is often not the most important feature to a loan, sometimes can save more by having the correct structure. Eg if they have an offset account attached which they probably do not; is it functioal whilst the loan is in a fixed term?
Hi Passi. One of the good things with the ING deal (make sure you double check) is that on the fixed loans you can make up to 10k per annum extra repayments wihtout penalty. Not sure with these others, but while it would not worry me on an IP, I don't think I would like 5 years of fixed interest loan on an owner occupied at min repayments only. Never seen much point in an offset bank acount (especially if you are paying extra via the interest rate) with your first owner occupied home, unless you either plan on making it an investment property down the track, or will expect to have a lot of money sitting around unused – in which case redrawing from the loan works fine – as long as it is 'free'. I can certainly appreciate in the current economic climate, when shopping for a fixed rate, wanting a good one. THe loans you mention will save you over a grand a year on a 300K property in interest – but as mentioned, make sure they are flexible enough for you.
Hi Passi,
Crystalclear Home loans have been around since 2007! We are a newly trading finance company trading under the ACS Group who have been in operation since 1998.
as for
Electronic loan – please advise of their website as I would be interested in looking at what they are about!!
The only "electronic loan" that I know about are the applications that we currently send to our normal lenders but now instead of having to send the good old paper via snail mail or the trusty fax machine now we are able to send applications and the verifing paperwork electronically.
Sorry can't help you any further.
Cheers
Sharlene
[email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
