Anyone in the know?

Hi Stevo,

Agree with Terry – stick to a major bank. Have you spoke with your current bank? (whoever that may be) The nab choice pacakge is likely to be one of the best value bank loan packages you will find – especially if you are borrowing over $250k, and have a rewards credit card, and other banking needs – market leading rate too now for quite a while. LMI will need to be included in the loan amount / costs however with the NAB, it is not 'capped' technically.
Run a mile form mortgage managers or originators, and even more so credit unions!

All the best.

difficulties later on when trying to get increases, lack of offset accounts, high exit fees and all loans mortgage insured.

Kat

Mortgage managers and non bank lenders dont offer offset accounts in the true sense of the word they offer loan redraw accounts which is completely different especially when it comes to Tax time.

They thankfully pulled out of the Broker market about 3 years ago when they sold their loan book to First Mac.

Service levels were a disgrace so First Mac had to kick them into some shape.

You might start your home loan with HSBC but if they have a change of heart you might end up with someone else.

Totally agree exactly the same as Homepath with CBA, One Direct with Anz etc etc etc.

Hey Kat,

Not ignorance at all…….it really come down to what you are planning to do.
In all truth, credit unions and mortgage originators (only maybe for the latter) may be ok for a 'bread and butter' home loan that you never plan on doing anything with other than paying off over 30 years, and never want to invest or purchase a second or subsequent property. Really though, unless that particular organization has a good staff member/loans officer etc working for them at that time (while they are wondering how soon can they get out and work somewhere that they are given some latitude to use their experience) you will not get any helpful advice, you will have to know what you want exactly, and hope they give it to you. 
The majority of credit unions still assess home (and all ) lending manually (ie the loan staff have to write a two page essay based on the personal opinion of what one or two people at the organizations head office require – people with big egos & with no business or investment experience at all –  deem as 'prudent lending – and hoping they got them on a good day) – which while can be handy on the odd occasion, is not as 'objective' as a bank that uses much more efficient and objective lending decision processes.
The problem with mortgage originators, that was not such an issue until the GFC, is that you are totally at the mercy of the loan you have being either onsold to another lender (which usually means higher interest, as they have 'bailed out the mortgage originator') or more volatility in interest rates.
IN the past it may not have been such a big deal, but right now there are a lot of people hurting real bad, or that cannot use their equity as they would like that have lent with places such as this in the past.
Some others may disagree, but bank owned 'other lenders' (thinking Homeside, BankWest etc etc) are not that bad, they often use different policies / mortgage insurers / or suffer in their service levels compared to the major banks themselves – and I guess why shop at ALDI when you can buy name brand stuff for around the same price? (forgive the analogy – but hope you get the idea)

All the best.
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