Self Employed and Looking for Home Loan with Low Interest

a-friend on 11/10/2016 - 02:41

Hi fellas

I am self employed. Planning to get my home loan soon (home construction starting in December). Also I am a first home buyer.

I've got 20% deposit. I am banking with ANZ, and my business loan is with CBA.

My construction company is metricon. So I have to get my home loan from Loan Gallery.
Now the broker from Loan Gallery keeps on insisting that I should get a loan from ANZ or CBA, because I am self employed and already banking with them.

Provided I have 20% deposit I am asking the broker about other options, the broker comes back to the point that I am self employed and redirects me to big 4 banks. He says the approval will be easier and there will be less paperwork.

He has offered me 3.95% variable rate with ANZ 80% lvr.

Now my question is, being self employed should I go ahead with this offer. Or do I have any other options.

Thanks

Find Me A Bargain

Comments

  • 2jzzzz on 11/10/2016 - 06:33

    You could just do it, get it sorted, then jump ship in a year? Would have to check the loan contract offered though.

    • a-friend on 11/10/2016 - 12:47

      We are just negotiating. I'll ask for the contract thanks

  • chumlee on 11/10/2016 - 08:23

    Depending on fees, 3.95% is a decent rate. Being self employed there are more hoops to jump through so unless you want to shop around yourself maybe go through a different broker? You mention metricon makes you go through a particular company but I assume it's optional otherwise it may be a case of third line forcing

    • a-friend on 11/10/2016 - 12:55

      Thanks

      That's what they told me, I'll still double check about another broker.

      But if 3.95 is a good rate I'll go with them as the process is very easy.

  • tomleonhart on 11/10/2016 - 09:26
    +2

    How long have you been self employed for ?

    Most lenders want 2 years history, ANZ only needs one. That might be the reason your broker recommended ANZ.

    • a-friend on 11/10/2016 - 12:43

      3 years

  • cupcake on 11/10/2016 - 10:00

    If the paperwork is easier, then go with it. You can always jump ship later when you find a better rate.

    • a-friend on 11/10/2016 - 12:56

      Ok thanks

  • Trying2SaveABuck on 11/10/2016 - 10:16

    I'd say 3.95 is pretty decent as long as you are under 4% you are doing fine.

  • macrocephalic on 11/10/2016 - 11:11

    I've never heard of this requirement that Metricon require loans to go through a specific broker. A relative built a house through metricon (about 7 years ago) and went with an independent broker.

    FWIW, Loans.com.au and Reduce home loans have rates at about 3.55% at the moment. On a 500k loan that would be a difference of $2000pa. 2k is significant, but might be worth sucking up and changing in a year instead.

    • a-friend on 11/10/2016 - 13:03

      Thanks I will double check that. But the process is very easy with Loan Gallery as they are deeply connected with metricon.

      I'll contact some brokers today.

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