All Topics / Finance / Aussie home loans

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  • Profile photo of daicosdaicos
    Member
    @daicos
    Join Date: 2008
    Post Count: 1

    Has anyone had any experiences with Aussie home loans before? The reason I ask is because they are doing this deal at the moment where they’ll give you a free $500 fuel voucher if they can’t find you a cheaper home loan deal. I’m not sure if this is only applicable to people with home loans already or not, though. Either way it seems like a reasonable deal to me, what do you reckon? I’m not sure what they’re like to work with, so any comments are welcomed.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    You would have to say it is a Big John marketing gimic.

    I can guarantee that if it is merely the lowest rate you are after then i assure you I can better what you have at the moment but the big difference is it really what you are after and does it suit your circumstances.

    The lowest rated products usually have very little features and very little service.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Low rates can end up costing you much more.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of Nikki PNikki P
    Member
    @nikki-p
    Join Date: 2008
    Post Count: 5

    How do low rates end up costing more?

    Nikki

    Profile photo of jasandlivjasandliv
    Participant
    @jasandliv
    Join Date: 2008
    Post Count: 39

    forget choosing a loan purely on a cheap rate. As per a previous post of mine, i'm stuck with a crappy loan with a good interest rate that is now costing me money. I jumped into a wizard shopfront and got the cheapest rate i could find. This was great at the time, but things change and the property this loan is attached to is now an IP. I have a cheap interest rate but am stuck paying Principal and Interest because the loan product is so inflexible and won't allow interest only repayments.
    This inflexibility is costing me over $200 per month that i should be contributing to non deductable debt.
    The lesson i am currently lerning is to carefully choose what loan you choose now as it will efect you 3/4/ 5 years down the track. In hindsight another .05% and a more flexible loan would have been much better.

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
    Post Count: 970

    Ask if they can match One Direct variable 8.35%. 
    Good features and one of the lowest rate in the market

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Nikki

    When the loan is so inflexible that it doesnt do what you want and doesnt provide the features that most investors require.

    If the cheapest loan was the be all and end all then realistically no other loans would be written.

    The discount lenders write less than 4% of the total loans written and this tells you something.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of god_of_moneygod_of_money
    Participant
    @god_of_money
    Join Date: 2008
    Post Count: 970

    Richard,

    Can you get lower than OneDirect 8.35% with similar or more homeloan features??
    It is rated 5 star by Cannex and smart investor.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    GOM not being funny but why do Anz offer home loans.

    If they were that good everyone wouldnt everyone use One Direct.

    Maybe it is that they dont do more than 60% on lodoc, dont accept application from Trusts or Company applications, have DEF nearly double that of the Anz, no offset account,

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    Nikki P wrote:
    How do low rates end up costing more?

    Nikki

    High exist fees mainly. Also as Richard mentioned lack of features and lack of flexibility if you wanted to change products eg. And if you decided you wanted to fix after a year or 2 you may find the fixed rates on your lender are actually higher than a bank.

    Also consider the fact that they may not be keen on lending you more money later (because all the loans are mortgage insured), you may have equity which you cannot access without paying huge exit fees.

    There may also he higher fees in general such as arrears fees, missed payment fees.

    They have to make money elsewhere if they are not making money on the rate.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

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