Im about to take on a home loan, and I've pretty much chosen Wizard as my supplier.
I am a little concerned about the fact that GE have them up for sale, is this likely to change anything or make it a risky option.Im after a interest only, offset account, split between fixed and variable, – the variable being 8.69…..
and they have no startup and very little ongoing fees…..
only worry is the exit fee – which is 1.2% of loan in first 24 months…, then .90% thereafer….any comments?
Be worried…I had a loan several years ago..then 18 months later the loan was taken over by GE Money..since that moment interest rates rose (not in line with other lenders) then the exit fees were astonishing…the service they provided was non existant… my only advice is look for another lender that has what you want and stay away from GE Money… its a shame Wizard have sold out
Wizard do not have any loans with an offset account – and nothing spectacular that any of the banks do not. Why would you be worried about exit fees? Are you planning to sell or jump financiers again short term?
GE are a mighty big slush fund, but if sold (I heard rumour Mark Bouris wanted to buy them back!) unless purchased by one of the major players/banks, you do risk unpredictable rate rises in the future, as Wizard will even moreso than now, have the same problem securing funding as other 'securitised' lenders or 'wholesale brokers'.
AFIG are the entitiy that manage the Wizard loans, who also provide a lot of other funding to 'no name' lenders/loans.
As a sidepoint, one of the better points about Wizard was that they tried to remain seperate form GE, who are a bunch of shysters, but esentially GE offer exactly the same loan products now as Wizard – only more competitive.
Until you have seen the likes of ANZ, NAB, or St.George i wouldnt bother myself. If you don;t want the hassle, see if you can find a reputable (rapidly diminishing species) broker to point you in the right direction.
All the best.
Cheers
I am with V8.
Depending on who buys the loan book will determine how easy it becomes for them to carry on in the wholseale market.
Many of the smaller players have disappeared due to funding issues and if you purchased a franchise with any of these then it is not worth the paper it was written on.
Thats why in the last survey the Big 4 (soon to become Big 4) made up 87% of the overall market.
Richard Taylor | Australia's leading private lender
Doing the research now may save you in the future.
There are many diferent loan options on the market and you may find a lender that has similar features as Wizard, but without the 1.2% or 0.90% early repayment fees.
If you do have to sell or refinance your loan within a 2, 3 or 4 year period those early repayment fees will hurt. and Wizard's offering maynot seem in hindsight so sweet.
Also find out what are Wizard's valuation or legal fees – cost for their Solicitor to do your documents / attend settlement. They may not call this an application fee, but its still a fee. A big 4 lender may charge an application fee, but don't charge separate valuation or legal fees.
Good luck
Shane
Buyers Choice Home Loans
07 38207161
[email protected]Just have a look this website
http://www.smartsearchfinance.com.auThey published specials from each lenders
You can compare it with wizardMy local Wizard branch seems very good. Very helpful, and friendly. I was recommended to them by a friend, and it seems ongoing support is good.
I'm assured there are no other legal fees or valuation fees.I am thinking about exit fees, as I am concerned that if the Lender changes hands, then the new owner will push up the rate. and it will no longer be competitive – therefore making it better to move to another lender….. mortgage.
I have compared Wizard/Westpac and AMP….
and Wizard comes out on top – my only concern is the fact in that they could be sold off .
Their only issue with them is the high exit fee…..Westpac and AMP are much more reasonable.Hei bigmark,
When you compare the loan.. you compare everything including exit fee into equation.
Often it was hidden by small lender trying to recoup their loss by waiving the application fee.
So that the AAPR rate is low…thanks for pointing that out!!
Hello Bigmark.
Its true Wizard dont have an offset loan they have a homeloan with a mastercard attached (thats got some MASSIVE fees once you actually use it) and unfortunately its not true that they are separate from GE. They are actually not managed by AFIG, AFIG was bought by GE just as WIZARD was and the GE MONEY customer service line is the same number as the WIZARD customer service line (bar one digit) and the same people answer those phones and answer your enquiries. I am less than impressed with them as they are still struggling with the transition from pre-GE to presently GE so i personally wouldnt be confident of the performance post – GE.
All the best.
At present it is impossible to predict what will happen to Wizzard, therefore IF i was to have a loan with them I would want it to be easy and cheap to change products any time down the track. With such high exit fees any future owners could easily increase fees and rates knowing how expensive it was for people to switch. In this market I would pay alot of attention to exit fees.
It is not really going to make a massive difference what happens to the book, due mainly to a couple of things that any change will incorporate.
Anyone that can take on the book in this market will have funding to do so.
and
If the book remians as-is, changes will be in line with the market (or close to it).The thing is that even if the most cashed up organisation on the planet bought the book, the rates will continue to fluctuate.
This is why.Securitised funders are struggling to place bond issues. They are paying a premium of funds (if they are even able to price an RMBS issue to start with), and they have to pass this cost on to borrowers or recall loans.
Securitisation has been a very popular form of funds generation in the past 3 to 4 years, and a lot of institutions are adjusting rates (to various degrees)
Balance sheet lenders have all moved their rates too, even though the RMBS market does not affect their cost of funds.
CBA is almost entirely Balance Sheet Funded, but they have capatilised on market conditions to increase margins. The sub prime events had almost no effect on the CBA's cost of funds. They have simply seen an entire market go up 1%, so they went up 0.75%, make fatter margins and still stay at the pointy end of the field.If an organisation buys Wizard, they will have the funding in place years in advance. That being said, the rates will still go up if the rest of the market continues to fluctuate.
Find yourself a reliable and knowledgable Human to deal with, and keep your fingers crossed for the market conditions returning to 'normal' in the future.
Best of Luck.
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