Best Home Loan Product

SaberX on 07/03/2015 - 21:32

Hi all,

FIrst time home buyer. Planning to pickup some land in Perth, circa 300k. Chuck a house on it for about 200-240k… stay in it for 6 months and get the grants, stamp duty, then rent the hell out of it haha.

As a first timer just wondering if brokers and well versed individuals could throw then 5 cents in for:

1) What product features should one look for?
2) What sort of costs are involved? The 'annual package' fee is thrown around always, but what is this? Enquiring with bankwest the only thing I got told was $9 a month for offsets.. do lenders have other fees and charges that are recurring

3) What lenders are there for my options??

Abit of context into what I know i'm looking for - but it's the questions I don't know that i don't know which i'm most worried about - would love some advice:

a) An offset account. I assume this is better than a redraw given it doesn't mess with tax implications of redrawing money out.

b) Ability to put in and subsequently take out as much money as I want from the offset account, whenever I want…. basically I want to chuck spare earnings in there to reduce it, but the ability to withdraw it out for any future purchase (perhaps a second property?)

c) Should I go interest only loan? With a full offset I assume you can pay it off like you were paying off principle + interest, with the added benefit of in hard times you're only paying interest - less cash outflow.

Is there a maximum years period before interest only loans usually revert to principle + interest payments?

d) A bank that is reliable for cheap rates. I don't want to go the cheapest rate now for a bank which usually then fails to pass on future cuts - don't want to hop around too much if i don't have to

e) Cheapest/cheap rate %, and lack of exit fees or fixed costs is a bonus.

Thanks for any advice…. What are my options guys?

Would be great to hear what sort of current interest rates and bonus features/throw -ins banks /lenders are giving.

I read this recent thread on here - are the SUncorp or any other lenders doing the great packages/deals mentioned in here: https://www.ozbargain.com.au/node/182334

Financial

Comments

  • [Deactivated] on 09/03/2015 - 10:04

    I just secured the Suncorp package waiver deal that expired end of Feb and bargained a better rate drop, by speaking to them over the phone.

    I wanted to avoid the .com lenders and the big four, so extremely satisfied.

  • SaberX on 09/03/2015 - 10:49

    What was the offering for the expired suncorp package?

    Any reason you avoided the .Com lenders?

    • [Deactivated] on 09/03/2015 - 12:22

      Package fee waived for the life of the loan. call and they may still be offering the deal,

      package benefits…

      Discount off the svr
      Fees waived including CC
      Offset accounts
      Discount off insurance (one month free every year)
      ETC…

      No particular reason aside from peace of mind with having Hundreds of Thousands in debt with a ASX listed company, for the sake of saving .1%

      none of the other banks could match both the rate or the waiver

      • SaberX on 09/03/2015 - 21:13

        Are you using a fully interest only full offset account?

        How much would the average fee per yr cost you? Just to put things into perspective?

        Can i ask what variable rate you got ( assume that's the same as a SVR just different terminology?) just trying to gauge what sort of rate i can expect .

        DDon't think you needed to worry about the asxc listing etc. Doesnt affect you even if they went broke if you've already borrowed The money

  • [Deactivated] on 10/03/2015 - 02:19

    Package fee is waived. , normally 375 annually.

    yep… 100% offset account included.

    i think you get 1.05% off the Standard Variable Rate with the package, so sub $500k will get you 4.69%

    The only major negative is the atm network

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