First Home Loan

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  serpserpserp on 28/12/2017 - 19:58

  +4

  Geez at least get your numbers right in your quotes, I don't even understand the 2nd and 3rd ones.

  Do you work for BOQ to not be getting LMI? At 10% that sounds like garbage unless they just fattened the margin on you to make you pay it there.

  No point asking us if they are of "value" you should decide if you can afford these, if you can, then it IS of value to YOU.

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  oldmate78 on 28/12/2017 - 20:20

  edit

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  double06 on 28/12/2017 - 20:21

  I don't work for them, this is through BOQ Specialist because I'm in the medical profession.

  That's straight from the email. Looks like they've given me options of 95% or 100% borrowing of a $700,000 purchase price.

  Split into two options:
  1. 630k @ 4.09% + 70k @ 10%
  2. 630k @ 4.09% + 35k @ ~11%

  I think it's an interesting offer because of the little requirement for a deposit. Do the rates sound ok otherwise - I feel it can be more competitive?

  • 

    holdenmg on 28/12/2017 - 20:48

    -1

    check out:
    https://www.statecustodians.com.au

  • 

    StalkingIbis on 28/12/2017 - 21:27

    +3

    I think anything over 4 is a rip at the moment.

    I got 3.88 as a first home buyer with barely enough deposit to avoid LMI

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  Skramit on 28/12/2017 - 20:50

  +1

  I can’t make sense of your numbers and options. Wtf.

  Also why would you borrow 100%? Save for a deposit first so you won’t get whacked. By those expensive rates and fees.

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  TheBilly on 28/12/2017 - 20:58

  +1

  This makes no sense?

  • 

    djkelly69 on 28/12/2017 - 21:14

    Doctors and some other professions can get loans with 90% LVR with no LMI. That is loan 1. Other options I would guess are personal loans to make up the extra 5 or 10% OP needs to contribute.

    Seems dodgy to me, as not sure why there are no savings or savings history.

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  StalkingIbis on 28/12/2017 - 21:25

  I know a dentist who took out a similar type of loan for his first house. The 10/11% is a balloon payment and he was getting hammered with interest for 6 months until tax time when he just cleared it and it essentially became a normal loan at around 3.9%.

  As for the comment about just saving for a deposit, yes, great option, but then you'd have to move twice in 6 months (assuming very short time to accumulate the deposit, same as paying off the balloon). Hassle may not be worth the dollars to some people.

  Also, another factor may be missing out on a property they are very keen on, in which case they are lucky to have these options.

  New grads dont tend to have much of a savings history, but the banks are counting on their reputable profession.

  notmyluck,ihadtosaveforages!

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  Azrael169 on 28/12/2017 - 22:41

  Interest rate over 4% is garbage. 3.7-3.8 find another lender.
  Free credit card? who cares. Plenty of banks will give you one for free.
  $395 Annual fee? Your paying a much higher annual fee than me (0 per year)

  Keep shopping

  Also avoid 2nd loan. Put your savings into the mortgage and pay it down. The interest rate is horrible and the bank is just making money off you. Only exception would be if this was a investment property, still I wouldnt eat the interest rates on that 2nd loan

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  [Deactivated] on 28/12/2017 - 23:16

  Dude just go to HSBC or UBank for better loan rates, 4% is too high

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  AusGP on 29/12/2017 - 01:39

  I'm a medical professional with a similar experience to you. I borrowed initially with Investec which subsequently got their medical/dental banking business taken over by BOQ, now operating as BOQS (it is actually a separate bank with its own BSB)

  Bought almost 4 years ago now. Because I had savings locked in a FHSA at that time, bit the bullet and borrowed 95%. 80% at a low fixed rate but 15% at 8-9% at that time. Refinanced ASAP with break fee of around 3k but within the year that I refinanced equity went up around 40k (and that's a conservative banking estimate).

  So it really depends on how you view the market - it is a very expensive loan but probably the only way you can get in without a guarantor or deposit. If you think the market will go up it's worth it. I'm now probably 150-200k equity better off (but you never know until you sell) but the biggest benefit is having a mortgage to enforce saving habits. Circumstances are personal though as if you have a strong savings habit and if the market is stagnant, then buying a home may not be the right move under this structure.

  In summary:
  BOQS seems to be the only bank willing to back risky 95-100% loans but this comes at a cost. Whether you are willijng is another story. You could probably negotiate better rates for owner occupied (currently am on better) - I know I did. (I threatened to walk away once as their own BOQ had better rates but albeit for 80%LVR - worked as I could show them HSBC and BOQ both had lower rates and as a medical professional I expected 90% LVR should get the same treatment as 80%)

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  jellykingdom on 29/12/2017 - 14:03

  One thing I encourage people to check (i'm sure there are basic calculators that do this on the net somewhere) is whether an Offset account is worthwhile. You'll usually end up paying a bit more for the feature, and while the home lender will swear black and blue that its the best thing you can do in EVERY circumstance, you need to compare the savings from the offset account vs the extra interest you will pay

  Its probably all levelled out a bit now, but when I got my first loan, I was actually going to be worse off with the offset account because what i actually saved from my salary didn't compensate for the higher rate