Mortgage broker for ING Direct Orange Advantage loan

CacheHunter on 07/12/2015 - 00:09

I am currently in the market for a mortgage and am interested in ING Direct's current 3.99% offer. While researching, I came across comments (https://www.ozbargain.com.au/node/209403#comment) about using rebate or cashback brokers. The discussion lists:
* https://www.matesratesmortgages.com.au/
* https://www.peachhomeloans.com.au/
* https://www.yourshare.com.au/
* https://www.refundeasy.com.au/
* https://www.mymoney.com.au/
* https://www.irefund.com.au/

While trawling OzB, I also came across https://www.naritas.com.au/landing/ozbargain-special-ing-ora…

Has anyone used any of these brokers or can you recommend someone else? Are there any risks or downsides I should take into account compared with dealing directly with ING that might offset the savings? One thing that worries me about the smaller brokers is whether they will be around in 2/5/10/20 years etc to rebate the trailing commission or arrange a split loan if I decide to lock part of the balance in at some point in the future?

To help with any calculations, I will be borrowing close to $1 million for an owner occupier mortgage with an LVR <80% and settlement in late January (likely around 23rd).

As there are already plenty of forums and deals on OzB comparing mortgages, this discussion is intended to focus on the pros and cons of dealing directly with a lender or going through a broker if you have already decided who you want your lender to be.

Thanks in advance for any feedback or suggestions.

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Comments

  • Associatedtomleonhart @ ING on 07/12/2015 - 09:02
    +1

    Broker here.

    Broker gets you the same product that you would get going directly to the bank.

    PROS:

    • Based on what you wrote above, going directly to ING won't give you the cashback.
    • Couple of years from now, ING won't tell you if there's a better product on the market. Your broker will.
    • Even if the broker goes bust after 2/4/20 years, you will still be better off because you otherwise won't get the cashback in the first place.
    • Dare I say broker offers a bit more personal service than someone who works for a bank.

    CONS:

    • I can't see any but maybe I'm just biased.
    • CyberMurning on 07/12/2015 - 12:48

      some brokers will give part of their commission as cash back to the clients. i said "some". but they will ask you to stay with them for 2 years

      • Associatedtomleonhart @ ING on 07/12/2015 - 14:58

        yeah otherwise their upfront commission is clawed back by the lender

  • superbird on 07/12/2015 - 11:33
    +1

    Keep in mind that ING will be raising their variable interest rate in January by .18%

    https://newsroom.ingdirect.com.au/releases/variable-home-loa…

    • dasher86 on 07/12/2015 - 12:46

      plenty already have, ING is late to the party.

  • [Deactivated] on 08/12/2015 - 17:00

    I think most people went with matesrates which gives you the trailing commission.

    However since you're borrowing over $500k you will be better off with the guys that charge you a $3000 fee for their service and then gives you the entire commission both upfront ($6k for you) and trailing. I am in the same boat. However I have lost the details. Help me find them :)

    • CacheHunter on 08/12/2015 - 18:53
      +1

      I've not found anyone offering that good a deal. Yourshare are offering $1000 up front and full trail minus $295/year.
      Naritas only do $1000 up front. Others keep the up front but give all the trail.

      • denis7 on 08/12/2015 - 19:22

        Hi newdad, I have used Naritas services couple of weeks ago. I had a great experience as the settlement happened on the date I wanted (was a tight deadline) due to my annual ANZ fees were kicking in. If you would like $250 each for both of us as referral credit, please PM me. I am not affiliated with Naritas at all but just want to share my good experience with fellow members.

  • [Deactivated] on 08/12/2015 - 17:38
    +1

    Hi newdad - thanks for considering our ING offer (https://www.naritas.com.au/landing/ozbargain-special-ing-ora…).
    If you're looking for a sharp ongoing rate plus rebates, perhaps this other offer at Naritas will be more appealing: https://www.naritas.com.au/latest-news/fixed-rate-special-3-…
    In short, at 3.69%p.a. (CR n/a) for a 2 year fixed or 3.89%p.a. (CR n/a) for a 3 year fixed which can be combined with a lower variable interest rate than ING, you may be able to work out ahead in comparison to the ING offer you were considering.
    If you'd like to discuss your scenario please feel free to send us a PM.
    Hope this helps.

    • [Deactivated] on 08/12/2015 - 21:59

      Do you have a 5 year rate?

      • [Deactivated] on 08/12/2015 - 22:45

        Hi LoopyLou, thanks for the question. Yes we do, it's presently 4.49%p.a. (CR n/a). Depending on your loan size you'd possibly qualify to get legals waived (typically $48) and other rebates. We also offer ING at 4.48%p.a. (CR n/a) with a $1000 settlement rebate (https://www.naritas.com.au/landing/ozbargain-special-ing-ora…). However, with ING, its variable as Superbird pointed out above is going to be 18 basis points per annum more expensive than Newcastle Permanent (https://www.naritas.com.au/latest-news/fixed-rate-special-3-…). So depending on what proportion of your loan you wanted to fix and your loan size either might be worth considering.

      • samprofs on 13/12/2015 - 22:26

        Hi Broker here too. We have a special broker only promo 5 year fixed with BANK OF QUEENSLAND on investment and owner- occupier at 4.30%p.a. Valid until 23/12/2015 though.

        • [Deactivated] on 14/12/2015 - 14:44

          Wow nice one.

          a) Can you do a deal with trailing commission?
          b) What is the variable rate? I will probably do a combo.

        • samprofs on 16/12/2015 - 12:39

          @LoopyLou:

          a) Will check if it can be automated. Can rebate trail less a small admin fee if you have an ABN.

          b)If total lending over 500k- it is 3.99%
          150-499k- 4.15%
          $10 per month fee and 100% off-set. Going up by 0.18% in line with other lenders due to APRA capital requirements

          Will check if it can be automated. Can also email you the full terms and conditions, if you are interested.

  • samprofs on 13/12/2015 - 22:35

    Hi, the mortgage brokerage that I work for has a white label product (VOW HOME LOANS) product that DOES NOT rely on the broker paying you trail back and is 0.1% lower than ING, funded and backed by Macquarie bank (10th largest company in Australia), 100% off-set and NO ANNUAL FEES (compared to $220 with ING). It is 3.89% p.a (3.89% comparison), but will increase from April 2016 by .18% inline with ING.

    Considering increases by ING…. ME Bank flexible loan at 4.09% is also worth considering, but it has a $395 a year fee.

    http://www.profs.com.au/apply-now or [email protected].

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