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RateCity Home Loan Sale - 8 Lenders 21 Products - Reduce HL 3.39% (CR 3.39%) HSBC 3.75% (CR 3.76%) and more

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RateCity Home Loan Sale - 8 Lenders 21 Products - Reduce HL 3.39% (CR 3.39%) HSBC 3.75% (CR 3.76%) and more
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AssociatedBasilJ on 08/05/2017 - 06:00 ratecity.com.au (731 clicks)
Last edited 09/05/2017 - 09:10 by 1 other user

Australia’s first home loan sale has just begun!

Until 10pm on Tuesday 9 May, eight lenders are offering rate reductions, fee waivers and cashback offers through RateCity’s Switch & Save Sale. Please note that this special is only available to refinancers.

  • Reduce Home Loans is offering the lowest rate in the sale, at 3.39% (comparison rate 3.39%), for its Rate Buster Essentials 100% Offset Variable product. That’s a reduction of 10 basis points. You will need 30% Deposit and the loan amount has to be under 500k.

  • ING Direct will give borrowers $1500 cashback if you switch to one of its three products on sale. The best rate is the Orange Advantage Home Loan (Principal and Interest) at 3.79% (CR 4.01%).

  • Owner-occupiers with a 5% deposit might like State Custodians’ Low Rate Home Loan with Offset, which is priced at the reduced rate of 3.94% (CR 3.97%).

  • For investors with a 10% deposit, IMB Bank is offering the Essentials Investment Loan, which includes fee waivers totalling $960 and which is priced at the reduced rate of 4.34% (CR 4.35%).

  • The other participating lenders – HSBC, Loans.com.au, Mortgage House and Community First – are all offering rate cuts and fee waivers.

To participate in the sale, you will need to answer a few questions about your current loan and provide your contact details.

You will then be shown loans that match your borrowing criteria. If you are interested in any of those loans, you can click on them and then the lenders will contact you.

At this point, there’s still no obligation to switch – you have 30 days to consider the loan.

RateCity is a comparison website that compares thousands of home loans, credit cards and other financial options so Australia can save time and money. RateCity doesn’t lend money or provide financial advice – just the information you need to make an informed decision. We may receive remuneration if you proceed to acquire a loan product through our site.

https://www.ratecity.com.au/sale

RateCity AFSL & ACL 316710

Financial Home Loan Loan Refinance

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closed Comments

  • LoungeLizard on 08/05/2017 - 07:13

    How long are the "honeymoon" rates applicable for?

    • AssociatedBasilJ @ RateCity on 08/05/2017 - 07:14

      No honeymoon rates, all the variable products are discount for the life of the loan.

      There are 3 three-year fixed rates deal in there too.

      • tomsco on 08/05/2017 - 07:18
        +3

        I guess the next question is how long till they jack the rate. I've heard loans.com.au is quite bad with this.

        • AssociatedBasilJ @ RateCity on 08/05/2017 - 08:03

          In another thread link, I tried to help the OP figure out his rate changes. So while loans.com.au increased their rates, there were some of them which were industry-wide response to investor-pricing and market-forces. Unless we understand the OP circumstances, its hard to figure out why rate increases happened.

          As for the May and August 2016 RBA rate cut, they actually passed on 0.48% out of the 0.5%. The big banks didn't pass that much back to the borrowers. CBA did 0.38%, Westpac did 0.39%, Nab did 0.35%, ANZ 0.31%.

        • smoke87 on 08/05/2017 - 13:18
          -1

          @BasilJ: people should be very cautious… These lenders could resell your mortgage and leave you with a rate double what you signed up for.

        • AssociatedBasilJ @ RateCity on 08/05/2017 - 14:01
          +1

          @smoke87:

          Thanks for your input. I would love to hear the basis of your claim.

          I have not heard of any instances of lenders who have sold their mortgage portfolios, resulting in a mortgage rate to double.

          Do you have a friend or someone you know that experienced it?

  • Stahh on 08/05/2017 - 08:37

    Not sure how you got 3.39% its showing 3.49 with reduced homeloan with with atleast 20% equity in a 700k+ loan own occupied P&I

    • AssociatedBasilJ @ RateCity on 08/05/2017 - 09:05

      Tech team has advised that to reduce the number of products shown to a user, only one product per company is exposed on the default results page. If you click on the View all link (located at the centre of the page, above the search results), all the loans that fits your parameters will show up.

      • Stahh on 08/05/2017 - 11:55

        Yes I did that although tbat rate you show is not available. This is the one comming up

        Rate Buster 100% Offset Variable Home Loan
        Get an ultra-low rate with Australia’s multi award winning home loan and it can get even cheaper with a good repayment history.
        Advertised Rate
        3.54% 3.49%

        Whats the requirments to get 3.39?

        • Stahh on 08/05/2017 - 11:59

          Seems to be under 500k

        • AssociatedBasilJ @ RateCity on 08/05/2017 - 12:04

          Rate Buster Essentials 100% Offset Home Loan 70% is 3.39% (CR 3.39%)
          * You need 30% Deposit
          * Loan under 500k.

        • great-price on 08/05/2017 - 22:19
          +3

          @BasilJ:
          Be very careful with Reduce Home Loans. I have a loan with Mortgage Ezy (which are part of the same company). I only took out the loan in August last year and it has already gone up by 0.5%. My refinance amount was less than 60% of the property valuation.

        • Ozbargun on 09/05/2017 - 15:40

          @BasilJ:
          Contacted Reduce home loans about the above deal, was informed that Rate City had stuffed up the ad and that the advertised legal fees were incorrect (should be $330 not $0).

        • AssociatedBasilJ @ RateCity on 09/05/2017 - 16:13

          @ahitchy:

          Thanks for bringing this to our attention. The legal fees are at cost, and a tech issue meant that it flowed to the page as $0. I have amended this on our site to show the $330 instead.

        • Ozbargun on 09/05/2017 - 16:25
          -1

          @BasilJ:
          So will you honour the prices that were quoted when I expressed interest and proceeded to give you all of my personal and financial details?

        • AssociatedBasilJ @ RateCity on 09/05/2017 - 17:01

          @ahitchy:

          In the email that you have received, you have got a breakdown of the upfront fees, including the $330 legal fees at cost. Only one of the 3 products listed by Reduce had the issue. Since RateCity doesn't charge the fee, we can't waive the fee. Reduce has also offered to waive the upfront fees in place of the discount if you like.

        • heal on 09/05/2017 - 18:20

          @ahitchy:

          So will you honour the prices that were quoted

          You said that rate city made the error, not Reduce, so I can't see why Reduce Home Loans should honour rate city's mistake.

        • Ozbargun on 09/05/2017 - 18:41
          -1

          @heal:

          I can't see why Reduce Home Loans should honour rate city's mistake.

          "RateCity may receive remuneration if you acquire a loan after following these links."

        • heal on 09/05/2017 - 19:18
          -2

          @ahitchy:

          "RateCity may receive remuneration if you acquire a loan after following these links."

          You should speak to rate city about giving you $330, again not the fault of the lender.

        • Ozbargun on 09/05/2017 - 19:41
          -1

          @heal:

          You should speak to rate city about giving you $330, again not the fault of the lender.

          Thanks Champ, @BasilJ is associated with RateCity not the lender ^

        • heal on 09/05/2017 - 19:58

          @ahitchy:

          Thanks Champ, @BasilJ is associated with RateCity not the lender

          Fair point and my mistake, I re-read above and realised you were asking ratecity, not the lender.

          Not a fan of your use of the word champ.

  • Birdyzone on 08/05/2017 - 09:12

    Hi rep
    What's the 3 year fixed rate?
    My application only showed the variable rates.
    Cheers

    • AssociatedBasilJ @ RateCity on 08/05/2017 - 09:15
      +1

      To reduce the number of products shown to a user, only one product per company is exposed on the default results page. If you click on the View all link (located at the centre of the page, above the search results), all the loans that fits your parameters will show up. If nothing shows up, it could be that there are no fixed loans on sale that matches your requirements.

  • d-hunterz on 08/05/2017 - 09:52
    +1

    What options do I have for fixed rates?

    • AssociatedBasilJ @ RateCity on 08/05/2017 - 10:04

      If your parameters for the loan satisfy the conditions, you can see these three loans.

      • ING 3.99% (CR 4.54%) with $1500 Cashback
      • IMB 3.99% (CR 4.71%) with reduced upfront fees
      • Community First CU 3.69% (CR 4.81%) with reduced upfront fee.
  • Haku on 08/05/2017 - 09:53
    +1

    Was looking at Reduced home loan 2 weks ago. Doesnt seem to be any diffrent from then. Would like to go with them, but thier application fee and discharge fees are a killer. Was wondering if you know what is discounted in this loan?

    I also notice they mentioned that the CR is discounted by 0.05% if the loan is held more that 5 years. Could you find out how that is worked out!

    • b2tf on 08/05/2017 - 10:23
      +2

      Be wary of reduce. Their business model seems to be geared towards making money on application fees and exit fees. They will charge you application regardless of the actual loan being issued in the end…

      • AssociatedBasilJ @ RateCity on 09/05/2017 - 17:02
        -1

        Reduce has also offered to waive the upfront fees in place of the discount if you like. You get the higher rate, but no upfront fees. You can sign up, and speak to them about this option instead.

    • AssociatedBasilJ @ RateCity on 08/05/2017 - 10:26

      Rate Buster 100% Offset Home Loan 80% is 3.54% (CR 3.54%) is reduced 0.05% to 3.49% (CR 3.49%)
      Rate Buster Essentials 100% Offset Home Loan 70% is 3.49% (CR 3.49%) is reduced 0.10% to 3.39% (CR 3.39%)

      Since the lender has offered a rate discount, they aren't offering any fee waivers.

      After 5 years with the lender, subject to good repayment behaviour, you can ring them up to request for the loyalty discount on the advertised rate (Not CR). So, if you start on 3.49%, you will get to 3.44% in 5 years with the loyalty discount. The calculation for comparison rate needs to factor in the repayments in both periods, 3.49% for 5 years, and 3.44% for 20 years, plus all the fees involved, resulting in the CR of 3.49%.

  • tunzafun001 on 08/05/2017 - 10:37

    My 3yr fixed @4.25% with 100% offset expires in June. Does this sale have any fixed with offset products?

    Also, any with free valuations?

    • AssociatedBasilJ @ RateCity on 08/05/2017 - 10:52
      +1

      The Community First Fixed product is fixed with an offset. The $600 application fee (waived if you apply through our site) includes one standard valuation.

      You have 30 days to proceed with the offer if you choose to, so a June settlement is probably possible. If you leave your details with Community First, they will contact you and be able to give you more specific timeframes.

      • tunzafun001 on 08/05/2017 - 11:27

        Cheers. It doesn't offer an option for both occupier and investment (either one or the other?). I chose both individually and will see what comes back.

        Any idea what happens if valuations come in under loan value? (I own properties in Whyalla… Not good). I assume all valuation fees would be still payable?

        • AssociatedBasilJ @ RateCity on 08/05/2017 - 11:49

          That's a very specific question, so I think its best to be answered by Community First when you speak to them. Let me know how you go.

  • jabroni on 08/05/2017 - 12:35

    already with ing so submitted an application for the 3 yr fixed

    • AssociatedBasilJ @ RateCity on 08/05/2017 - 12:45

      Glad you found the rate attractive enough to commit.

      Since you are an existing customer, you are not able to apply through our site and get the cashback. The cashback is to assist borrowers with the cost of refinancing, so existing customers aren't eligible.

      To access the rate, you will probably only need to call up ING and let them know you want to fix your loan.

      • jabroni on 08/05/2017 - 13:13
        +1

        this must be the only industry where i cant just login and change my plan and this is allowed

        • AssociatedBasilJ @ RateCity on 08/05/2017 - 15:11

          Log in to your account and send them a message. They will email you a form, and while not as straightforward as changing your plan with Optus, it's not a big exercise at all.

  • mick123 on 08/05/2017 - 12:40
    +2

    Looks like $1k fees up front with reduce

    • AssociatedBasilJ @ RateCity on 09/05/2017 - 17:03

      Reduce has also offered to waive the upfront fees in place of the discount if you like. You get the higher rate, but no upfront fees. You can sign up, and speak to them about this option instead.

  • atlinus on 08/05/2017 - 18:20

    Does it applies for pre approval? For those still looking for a property to buy

    • AssociatedBasilJ @ RateCity on 08/05/2017 - 18:25

      No, unfortunately this sale event is for refinances.

      Have a look on our site, you might be able to find a loan that may be of interest. You will not be able to access the discounts that we have negotiated with the lenders, but you may be be able to find a product with a great rate.

      http://www.ratecity.com.au/home-loans/mortage-rates

  • CarbonTwelve on 08/05/2017 - 19:57

    I was already in the process of switching to Reduce, however I haven't actually submitted the application yet (have been filling out the forms for the past couple of weeks). Am I still going to be eligible for the discount even though they already have my details?

    • AssociatedBasilJ @ RateCity on 09/05/2017 - 14:59

      Yes you can! Send your enquiry through, and when Reduce call you back, let them know you've enquired there before but haven't submitted the application.

      • CarbonTwelve on 09/05/2017 - 15:33

        Yep, I entered the details last night and got a call today and was told as long as I haven't submitted the application I'm still eligible for this deal. Thanks.

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