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I found this Home Loan Sale from Rate City.
Is it worth it to look??
Rate City Australia Biggest Home Loan Sale
LVjvala on 05/05/2017 - 15:04
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There is no evidence this user is sockpuppeting (this sale has been all over the news) and making statements like that instead of reporting is not exactly welcoming. Please use report in future.
No cash back or any other offers ? How is this a sale ?
I work at RateCity, and I can confidently say that OP is not affiliated with our company.
RateCity is having a 40 hour Sale Event, starting on Monday 6am. We are only at the pre-registration stage, which is why no offers have been exposed to public yet.
There will cashback offers, rate reductions and waived fees. I've got my deal drafted and ready to post, but I can only post it on Monday at 6am. 8 lenders and 21 products.
We were on Sunrise on Tuesday [Link}(https://www.youtube.com/watch?v=Vn3sijeiXXc), Herald Sun and Mamamia
I think we are also advertising here on Ozbargain via AdChoices.
That is right I am not associated with RateCity, I found this ad on Ratecity website.
I am not associated with RateCity either.
The difference is I believe you
Well, then lets wait for the offer when its released. It better be a good one.
I'll be out of bed at 5am, and at work at 545am on Monday morning to post the deal. :)
The lenders have been quite generous in some of the offers that they have made. Some of the upfront fees that hinders refinance have been waived, so borrowers can break even earlier. Some rates that are usually available for larger loan amounts are made available for smaller borrowing amounts. There's a cashback offer in there too. A few lenders have taken several basis points off their already competitive rates.
Rates are definitely competitive. 8 lenders participating in the sale are
*Community First CU
*HSBC
*IMB
*ING Direct
*loan.com.au
*Mortgage House
*Reduce
*State CustodiansIs it right to say that although the rates offered would be low but half of the participating lenders are not covered under Australian Govt.'s Financial Claims Scheme ?
Yes, we have lenders from both ADIs and non-ADIs in our sale.
Its interesting how discussion about non-ADI lenders comes back to this regularly. ADI stands for authorised deposit-taking institution. There are regulatory requirements about solvency and practices under the AFSL that ensures consumers' savings are protected, and thus the government were able to guarantee these ADI during tough times.
The reason why some lenders are not ADI is because they don't take deposits (savings) from consumers. They are in the business of lending money. The licensing requirement is the ACL, which ensures they comply with the National Consumer Credit Protection Act (NCCP). As your account with them is a loan, you owe them money, and in a bust your loan is an asset that another company can purchase. Your offset account with them is not like a traditional account with an ADI. but a sub-account under your loan. Your net balance with them is negative, there is no positive savings to be guaranteed and protected.
I've pasted my comments on a separate post here: https://www.ozbargain.com.au/node/303792
If a lender were to fail, it is possible that the lender would be sold as a going concern to another financial institution which would continue to operate the loan and offset with no change. It is also possible that any extra money they have put in their offset redraw facility would simply be deducted from the debt they owe the lender and their net debt position would be unaffected. Because the offset is a sub-account within the loan there is no possibility of the loan being sold in full to a third party and the money in the offset being “lost”.
There is an article about 2 weeks ago. smh
"Rather than your offset funds being snaffled then your entire loan being on-sold to a different lender Sarah, they'd more likely just be sucked into your loan"
So if I have a 500k loan and 200k offset when my lender fails,
my best case scenario is that the new company that buys will operate the product as is, and I still have a 500k loan and 200k offset
my worse case scenario is that the new company takes the net of the two, and I have a 300k loan and no money in my offset. Inconvenient, but not the end of the world. I can speak to a broker, refinance, and get the money out as a cashout.
nightmare scenario where i will still have a 500k loan and my 200k disappears will not actually happen.
All in all, the sale event will have something interesting for you, even if you are not keen on non-ADI lenders.
Having your offset absorbed into the loan and no longer accessible (in the event of insolvency) would be a deal breaker for a lot of people.
I understand that some may feel that way.
Glad that half our lenders might be able to interest you then.
Do any of these do loans for new build homes (In this 2 day special)? We have bought the land and are looking for a builder now.
Thanks for signing up 34mins ago to post this