Loans.com.au - Is Variable Rate Fluctuating Too Much And Always Above Advertised Rates?

So this is my first home loan Owner Occupied mortgage with any bank, it's a small loan of $197,358 and I'm curious if other banks also adjust their variable rate as often as loans.com.au and/or increase it above advertised rates as they have with myself.

Here's my history below

30-Apr-2017 From 3.890% to 3.940% (when advertised as 3.72% variable…..)

04-Mar-2017 From 4.090% to 3.890% (Got a phone call back saying my request was approved and my rates were lowered however on the same day the advertised rate also lowered and my rate was still above the advertised… I feel like this is a placebo call and my rates would have dropped anyway)

20-Aug-2016 From 4.220% to 4.090% (Still above advertised which also lowered. So I range up and asked for an review of rates as all my payments were on time)

23-May-2016 From 4.470% to 4.220% (Still above advertised)

30-Nov-2015 From 4.270% to 4.470% (Still above advertised)

31-Aug-2015 From 4.020% to 4.270% (Adjusted above advertised 4.020% at the time, I rang up and they said that the advertised rate was only for new customers? I thought I was still a new customer at this point?)

24-Jul-2015 4.020% P.A. (Loan started at rate as advertised)

Isn't this a poor business ethics to always adjust the rate above the advertised? Or is this industry standard?

I'll likely try and switch to a fixed loan if so as I don't gain enough benefit from having an offset account.

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Comments

  • Yes

  • NAB does the same to me.

  • +1

    Why are you still with these criminals that ripped you off for 2 years? Can't change provider?

    • Well I guess I wasn't sure if I was being ripped off or if the same thing would happen elsewhere plus even with the adjustments my rates are still lower than most people I talk to.

      I wouldn't be abrupt to changing however leaving the full time work force and becoming a pensioner may not allow this.

  • +1

    Home loan with ANZ.
    Changes not quite as frequent as you have experienced.
    Four changes over the same time period. All reductions, no increases.
    Last change was 12 Aug 2016 (a reduction to 4.00% p.a.).
    It might be time for me to look around.

  • +1

    i have to admit im pissed with loans.com.au too. quite a few rate rises in the last year.

    a little tempted to refinance and lie and say it's OO to get a better rate =/

    • hmmm

    • If you do let us know

  • +1

    damn, I just got a loan with them. It started at 3.59 then I got an email the day before I received the funds that it increased to 3.64.

    The rate is still much lower than all the banks I checked so I am still very please but it has only been days for me.

    I do hope that the rates, even if lots of fluctuations, will still stay lower then the competition.

    • +1

      I think you just got a loan at a bad time, when many lenders are making out of cycle increases. Despite RBA not making rate rise in March, NAB, Westpac, and CBA all made out of cycle changes, even to owner-occupiers PI loans. Many other lenders responded in turn, and raised rates recently.

      I'm still trying to understand OP's post, but for your case, its probably just a case of market forces…

  • +2

    I've been with loans.com.au for 5 years. The interest rate is currently 4.32%
    When I ask them about the interest, they tell me that the interest on their front page is for new accounts only. It's a silly number to get people in, then it just goes up.

    • wonder why yours is so high? 4.04% {loans.com.au Offset Variable - 80% to 90% LVR (Owner Occupier P&I)}is the highest rate they have listed here: https://www.finder.com.au/home-loans/loans-com-au. That is where I found potential loans. On the day Loans.com was the lowest (about a month ago).

      • I have been with them for 5 years. I just checked.

        On Aug-2015, they increased it by 0.25%
        On Nov-2015, they increased it by 0.2%

    • both OP and niknah are both hit with the Aug and Nov 2015 raises.
    • OP started on the loan in Jul 2015, niknah since 2012, yet both have only had those two rises.

    niknah, is your loan investor or owner-occupier?

    2015 is an interesting year for the home loans industry. Dec 2014, APRA announced the cap of 10% growth on investment portfolios, which saw banks pricing Owner-occupier loans differently to investment loans in 2015. Companies not bounded by APRA's limit saw growth in their loan book, then eventually followed the bank's lead on differential pricing. This loans.com.au media release states that loans.com.au added a premium for investors 0.25% in August 2015. link

    30-Apr-2017 From 3.890% to 3.940%
    (Industry wide rate adjustment)

    04-Mar-2017 From 4.090% to 3.890%
    (lender's discretionary reduction following OP request)

    20-Aug-2016 From 4.220% to 4.090%
    (0.23% out of 0.25% RBA cut passed on)

    23-May-2016 From 4.470% to 4.220%
    (0.25% RBA cut passed on)

    30-Nov-2015 From 4.270% to 4.470%
    (This is probably the only increase I can't account for)

    31-Aug-2015 From 4.020% to 4.270%
    (25 basis points suggest to me that loan was classified as investment and got loaded with a premium, but I could be wrong)

    OP, Perhaps you should check with loans.com.au if your loan is classified as an owner-occupier loan, as its strange you got hit by the August 2015 rise.

    I'll keep researching and see if I can find out why the Nov 15 rate increase happened.

  • I remember getting a letter from them saying my investor loan was going up. I contacted them and it turns out it was a mistake. Perhaps they put yours up at as mine, but kept it on the down lo when you didn't raise it for being non investor loan.

  • +2

    Also just wanted to make a quick comment.

    Had a similar issue my current rate was .29 higher than advertised rate. I called them today to discuss the issue - they were happy to match the advertised rate. Genuinely took about 5 minutes of waiting to get passed onto the correct person, no negotiation or back and forth required, just straight out matched it.

    They also mentioned you can call every 6 - 12 months and ask to be matched to the current advertised rate (if it is lower than yours).

    Overall really happy with experience, it was easy and simple.

    Edit. Thought I would include rate drop - from 4.36 to 4.07.

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  • I have the same feelings. The loans they show on their website if for new customers only. However, as you switched to them, they started increasing.
    I am also planning to switch over soon. Thinking to contact @naritas (apologies if it is misspelled) as they are quite active here.

  • Unfortunately this is very common with these credit unions and online banks.

    They operate on a bait and switch module to get customers in on a intro rate then. Quickly increase the rate thereafter, knowing that majority of customers will not Do anything and continue to pay.

    I'd strongly recommend you review your options to. See. What else is available with a more consistant bank.

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