I had a young lady come over today which explained something which seemed promising, this is their site:
http://www.lendinginstitute.com.au/
basically what they do is provide a variable interest rate loan (currently 8.2% compared to 7.9% being offered on the market) and a start up fee of $7,000.
those are the two negative points, the positive points though seemed to go on forever, they have absolutly no fees with banks (eftpos etc), and what they do for example is ask you to pay $4000 /month on the loan (my whole wage basically) and at the end of the two month, when the loan is at its lowest, you'll get charged interest and get $2,000 to spend on bills and expenses etc…. their idea is you reduce the loan to the lowest then get money after the interest rate is calulcated at the lowest point of the month….
I really hope i explained this wel, but i was wondering what you guys think of this?
This seems to me to be a 100% offset account (available from most lenders) at a higher interest rate and for an application fee more than 10 times charged by most lenders. Did she explain how long it would take just to save the application fee in interest?
It is also interesting that they have no testimonials on their site!
I would also check where their funds come from…I would expect that they are simply a mortgage broker with a lender sitting behind them and that they also earn commission from the interest rate loading. The person should have explained their commission structure, where the funds come from etc.Talk to any of the Mortgage Brokers on this site for a PROPER deal.
Boys and Girls; where are you? Help this person out.
I am a mortgage broker. If you want to chat call me on 0424 509 921. This story is the reason I joined the site….I want to keep up with information provided by lenders, brokers etc.
Regards
TrentAnd Trent C is a good broker. Hi Trent, welcome to the site!
Regards, Tracey in Brisbane
I'm glad you posted a query about this and didn't sign up. What that company is offering is absolutely awful. Have a read of the finance board on this site and get in touch with one of the brokers who post regualrly for some decent advice.
Regards
AlistairI am with Alistair i cannot believe it.
Never sign up for anything without reviewing all of the other options.
Richard Taylor | Australia's leading private lender
thank you so much for this feedback i might stop my mum from signing up too as she was keen also, may i ask why all the negative vibe towards this? any complete points you guys suggest to watch out for that i can see if these guys do the same?
Hi Guys.
Sorry to burst the bubble of negativity, but i signed up with Lending Institute six months ago, and it has changed my life. I know that sites like this can be great for advertising, and I am sure that Trent is a great broker, but i changed my loan from a CBA 100% offsett to a Lending Institute loan (And belive be there is a BIG difference!), there was an initial fee of just under $7,000 that I had doubts about also but there monitoring program has become a part of the way i look at my money and my mortgage and my consultant is a like a family member now. Most importantly we have reduced more off our loan then ever before.
Best of Luck with it all!
Mary WMary, I am glad you feel it is working for you but I hate to say that you would not have saved $7000 in your first year. As both Alistair and I have pointed out before any broker would have provided you with the same service for nothing.
Richard Taylor | Australia's leading private lender
Hi Richard,
My consultant has set up my budgets, taken me to seminars (that they have paid for) helped my husband with his taxes by referring a better accountant, and have even sat up late nights with different strategies to help us save money, long after they got paid for setting up the loan. Any mortgage broker can help you get a loan, i agree with that but what we received was mentoring and care we paid one time and the amount of times they have spent on us and will continue to spend is well worth it.
Im not saying its good for everyone, people need to make their own choices based on their own plans, im just saying that for us it was great and im not looking back.
Cheers,
Mary WHi Mary,
Good to see your comments and its nice to see you are really doing well with your new Loan through Lending Institue. Could you please advice as to where you are in Australia, and which bank your loan is through? And now that its been 6 months, whas the way ahead for you and Lending Institue, especially with a scenario that the interest rates are on the UP. Would love to hear from you. I am thinking about signing up with Lending Institue also.
The only query i have is who is providing the "Non-Interest Visa Account", whether its the same bank that provides the Home Loan or a different Financial Institution. Coz really the NIVA system works only if there is a monthly NIVA money, and i wanna know where that comes from? Who is providing it?
Richard and other finance brokers out there, can you guys offer a similar product? What info can you provide? The concept is quite logical, we put all our income in the Offset account and not spend a penny out of it for the month )which we DO at the moment), so we offset the Principal with that amount and save on interest compounded daily for 30 days, and then the amount we spend from the NIVA gets added to our Principal amount on the 31st day. And then comes the 1st of the next month when we have another same NIVA buffer which allows us to again put all our income in the Home Loan and live o nthe NIVA buffer. Really the guys as Lending Institue are selling an idea which any mathematician could have come up with but did NOT!!! So, how are the Lending Institute any worse than any other Finance Advisor/Lending Institution out there??? Please advice!! Any opinions people??
Regards,
RG.Mary Wilson wrote:Hi Richard,My consultant has set up my budgets, taken me to seminars (that they have paid for) helped my husband with his taxes by referring a better accountant, and have even sat up late nights with different strategies to help us save money, long after they got paid for setting up the loan. Any mortgage broker can help you get a loan, i agree with that but what we received was mentoring and care we paid one time and the amount of times they have spent on us and will continue to spend is well worth it.
Im not saying its good for everyone, people need to make their own choices based on their own plans, im just saying that for us it was great and im not looking back.
Cheers,
Mary WDon't just stop your mum, first spend more time looking up info and the nsee if its worth it or not. you don't make such decisions after reading commentso n just one forum like this. Mary could be with Lending Institue but the nagain, Richard and other guys giving you info are Finance Brokers themselves too, so they want a piece of your business as well ofcourse. And all info aside, its always possible that soneone somewhere is not informed of something. So ask more questions first and whe nyoou are satisfied you do have ENOUGH information, then only make a decision. Thats what i am trying to do…just an opinion my friend.
Regards,
RG.hoping2doitright wrote:thank you so much for this feedback i might stop my mum from signing up too as she was keen also, may i ask why all the negative vibe towards this? any complete points you guys suggest to watch out for that i can see if these guys do the same?
No – and I deliberately refused to look at their weblink. Look, each to their own, but if a 'lender' can con $7k out of someone to sign up, then they are that good they must deserve every cent! Man alive – it sounds worse than the crack head 'mortgage reduction specialists' that use south australian named banks to provide expensive 'lines of credit' along with exhorbatant (although not 7k!!!) fees to 'help' reduce the mortgages of gullible people. Seriously, this is disturbing. I recently had dealings with a client who was about to exit a 7.65%fixed loan to sign up with one of these programs to 'save money'. Retention of this loan, along with a variable loan and 100% offset account for new borrowings , and a loan package, (and no charge to do it) saved the day! Only reason I mention this is because all sorts are coming out of the woodwork to prey on people terrified by all the interest rate rise hype. IF you truly believe this will save money – get it in writing, and a loan comparison……ah, did'nt think they would do that……..
I get frequent phone calls from India trying to sell me some kind of finance product, I would say I've had 10 or 15 over the last 6 months. They all want to know if I "qualify" for a meeting with their [some fancy title – finance specialist or something], which seems to involve having a mortgage, being under 50 and employed (maybe breathing, too).
They then offer an appointment to talk about "reducing your taxes", "save on interest", etc, but nobody will give any details of what it is they want to talk to me about. I suspect they're proposing some kind of negative gearing using a line of credit. I've repeatedly told them that if they give me some idea what they want to talk about, I'll consider it, but nobody will give me even a hint, so I just say "no thanks". (Yes, my husband constantly teases me about how polite I am and the fact that I give them this much of my time
. I've gotten better, though – I now politely but firmly say no thanks and hang up on the "we're giving you a free mobile phone" callers.)Out of interest, does anybody know what these calls are all about? Is anybody else getting them?
Hi Lending Institue provide a loan comparison and the full terms and conditions are in Writing with a contract you sign with them. Any other point you may wanna make?
v8ghia wrote:No – and I deliberately refused to look at their weblink. Look, each to their own, but if a 'lender' can con $7k out of someone to sign up, then they are that good they must deserve every cent! Man alive – it sounds worse than the crack head 'mortgage reduction specialists' that use south australian named banks to provide expensive 'lines of credit' along with exhorbatant (although not 7k!!!) fees to 'help' reduce the mortgages of gullible people. Seriously, this is disturbing. I recently had dealings with a client who was about to exit a 7.65%fixed loan to sign up with one of these programs to 'save money'. Retention of this loan, along with a variable loan and 100% offset account for new borrowings , and a loan package, (and no charge to do it) saved the day! Only reason I mention this is because all sorts are coming out of the woodwork to prey on people terrified by all the interest rate rise hype. IF you truly believe this will save money – get it in writing, and a loan comparison……ah, did'nt think they would do that……..I did get some Telecommunication offer calls…but NOT PROPERTY-HomeLoan related calls. So no idea.
trakka wrote:I get frequent phone calls from India trying to sell me some kind of finance product, I would say I've had 10 or 15 over the last 6 months. They all want to know if I "qualify" for a meeting with their [some fancy title – finance specialist or something], which seems to involve having a mortgage, being under 50 and employed (maybe breathing, too).They then offer an appointment to talk about "reducing your taxes", "save on interest", etc, but nobody will give any details of what it is they want to talk to me about. I suspect they're proposing some kind of negative gearing using a line of credit. I've repeatedly told them that if they give me some idea what they want to talk about, I'll consider it, but nobody will give me even a hint, so I just say "no thanks". (Yes, my husband constantly teases me about how polite I am and the fact that I give them this much of my time
. I've gotten better, though – I now politely but firmly say no thanks and hang up on the "we're giving you a free mobile phone" callers.)Out of interest, does anybody know what these calls are all about? Is anybody else getting them?
rgupta78 wrote:Richard and other finance brokers out there, can you guys offer a similar product? What info can you provide? The concept is quite logical, we put all our income in the Offset account and not spend a penny out of it for the month )which we DO at the moment), so we offset the Principal with that amount and save on interest compounded daily for 30 days, and then the amount we spend from the NIVA gets added to our Principal amount on the 31st day. And then comes the 1st of the next month when we have another same NIVA buffer which allows us to again put all our income in the Home Loan and live o nthe NIVA buffer. Really the guys as Lending Institue are selling an idea which any mathematician could have come up with but did NOT!!! So, how are the Lending Institute any worse than any other Finance Advisor/Lending Institution out there??? Please advice!! Any opinions people??
Regards,
RG.Mate you can't be serious? Anywhere that offers a true offset account (or even an 'all in on account for that matter, but differnent purpose – workings) works on the same principal – reduce your daily interest by offsetting it via your salary, rental income, or other funds in your offset transaction account . If one of the banks charge you seven grand to do that for you instead of FREE maybe they could put on some more staff to improve service levels – who knows. I beleive I have 'freeness of speech' in this area beacuse I am not formally 'a broker' and I don't advertise or pursue any business whatsoever here, whether passively or directly.
As you corectly state 'anyone could have come up with this idea' – and indeed they have.
I d think it is terrific to be loyal to a product you have spent money on, or an organisation you work for thoughRichard, I'll say the same thing but a little more diplomatically, perhaps
Others certainly have thought of this principle and have been implementing it for many years. You can do the same thing with a line of credit from almost any lender in the country. I recommend that you go through a mortgage broker to find the particular product with conditions that are best for your situation.
I got my first LOC through a dubious "financial management" company that also charged me about $7K for the privilege of doing this, about a decade ago. I look at it as an expensive education
and a great story to tell about what level I used to be at as an investor. Thankfully that property turned out OK and I still made a gain before ultimately selling when I realised I'd been a sucker (another mistake – I should have refinanced instead of selling). I'm now far more educated and would never fall for something like this again. But I did, so I get it…Mary Wilson wrote:Hi Guys.
Sorry to burst the bubble of negativity, but i signed up with Lending Institute six months ago, and it has changed my life. I know that sites like this can be great for advertising, and I am sure that Trent is a great broker, but i changed my loan from a CBA 100% offsett to a Lending Institute loan (And belive be there is a BIG difference!), there was an initial fee of just under $7,000 that I had doubts about also but there monitoring program has become a part of the way i look at my money and my mortgage and my consultant is a like a family member now. Most importantly we have reduced more off our loan then ever before.
Best of Luck with it all!
Mary WSounds more like an ad for the company.
. I've gotten better, though – I now politely but firmly say no thanks and hang up on the "we're giving you a free mobile phone" callers.)
and a great story to tell about what level I used to be at as an investor. Thankfully that property turned out OK and I still made a gain before ultimately selling when I realised I'd been a sucker (another mistake – I should have refinanced instead of selling). I'm now far more educated and would never fall for something like this again. But I did, so I get it…You must be logged in to reply to this topic. If you don't have an account, you can register here.
