Might be helpful for ppl out there in same plan wt me-buy property. Received my pre approval today from the lady from HSBC, the interest rates is competitive - had not find any better interest rates to compare. Very happy wt the rates as I currently shopping for property.
Work out to be 5.69% p.a. for first year and was offer pretty good package for ongoing discount.
Give the Relationship Manager a call, recommended services too. The Relationship Manager no 0466 777 870 or their website.
for 2am & 4am calls?
Give the Relationship Manager a call
Will do, I could use some marriage counselling! :p
What was the package for the ongoing discount?
U have to have a package to get a discount. U can get a Powervantage package for loans over $250K, or Premier for loans over $500K. Package fees per mth are $20 and $35 respectively.. plus ongoing discount of 0.65% and 0.75% every year for respective packages off the standard variable rate.
Good deal!
"or their website."
anyone see a link? or Comparison Rate?
Standard Rate would be 7.34%!
I assume this is it:
http://www.hsbc.com.au/1/2/greatrate?WT.ac=AUH_hlgrhpsm0810
Quote:
"
This brings our current standard variable home loan rate# down to an amazing 5.69% p.a. (comparison rate 6.54% p.a.).
WARNING: This comparison interest rate applies only to the example or examples given. Different amounts and terms will result in different comparison interest rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison interest rate but may influence the cost of the loan.
"
In other words the current rate after the first 12 months would be 6.59%.
I have not seen any home loans with comparison rate lower then the on-going rate.
You have to borrow more than $500k to get the 0.75% ongoing discount and then the ongoing fee is $420p.a. - pretty high, especially as you still have to pay 50% of the application fee!
There are cheaper home loans available (eg lower ongoing variable rate, lower/no application fees, lower/no ongoing fees and lower Comparison Rate) that are not advertised to the public, but exclusively available through selected Mortgage Brokers.
Yeah, the 12 month 'honeymoon' rates are never a good idea, quite often they'll advertise the lowest rate, with further discount, with severe penalties for leaving … 3-5 years down the track, they become the most expensive rate, with a minimal discount to put it up there with the worst of them …
for the long term, you're best off with a general variable rate (unless you know that interest rate's are going up)
well, i got 6.54 variable (included 0.7% off for the life of the loan) at the moment with NAB offset account. $375/year fees for covering offset account and gold card seems to be a good idea. and yes, my refinance was not even 250k in total. and No i am not working for NAB, just got the idea of the cheapest of the 4 big bank (probably overall variable rate under 250K loan at the momment)
So, the $375p.a. annual fee you are paying effectively adds an extra 0.15% (375/250000*100)to the interest rate of a $250k loan (more on a smaller loan), meaning your effective rate is actually 6.69%p.a.
And this effective rate will only get higher the more you pay off your loan as the annual fee remains the same!
Not such a good deal when you view it that way, is it!
Depending on your specific circumstances, you could have got funding from a major bank between 6.45%p.a. and 6.55%p.a. with no application fee and no ongoing fees if you had spoken with a good Mortgage Broker.
Tiger, do you know a good mortgage broker? looking for a home loan at the moment. looking into bank west loans…
Which part of the country are you in?
@wisc: Unfortunately, I don't know anyone in Melbourne. I suggest you try and hook up with an MFAA member to increase the chances of getting an ethical, professionally qualified and experienced broker. Try this website http://www.essentialsofborrowing.com.au/
When will banks finally stop with all the misleading small print.
but I think that NAB one is good for investors. The ones you mention at 6.45 or 6.55 etc are most likely not offset accounts. There may also be fees for redraws.
You are correct, no Offset account, but unlimited (and free) redraws and extra payment are allowed by internet or phone. No minimum $ amount for extra payments and/or redraws. Can even salary credit directly into the loan, then do internet/phone redraws to your normal bank account when you need money.
ATM card is also available for immediate withdrawals from the loan via ATM/Eftpos.
Sounds like I'm selling a loan! Actually, just making the point that you should not be sucked in with good advertising and interest rates only. If you walk into HSBC, of course they are going to tell you they have the best loan. Same with any Bank. However, a good Mortgage Broker with access to a number of lenders will be better placed to tell you the best loan for your situation. It's not only the interest rate that is important.
Why would you post your mobile number :p