Hi guys,
I took out my first home loan in April 2016 on a two year fixed rate. Now that the two years are nearly up I want to see if I can get a better deal.
What are people's recommendations for current home loans? From reading comments on here I'm probably looking for a variable rate with an offset account. Currently I owe approximately $320k.
Thanks, let me know if I've missed anything.
anything below 3.7% without annual fees
3.64% loans.com.au
Saw HSBC at 3.65% other day with offset. Without offset, 3.55%
Good luck speaking to them.
Their customer service is non-existent.
The last time I called them, it sounded that they were on other side of the Solar System, interference and crackling (yes my connection is good).
I asked to speak to a Specialist. They said that he will call me …. waiting .. waiting …waiting … called again to no avail.
Hence the cheap interest rate. Must be saving by not hiring many people.
To get a great interest rate is fantastic, but then you need customer service to augment your experience.
There is no point to Bank with an Institution when they cannot help you or rectify any issues that you may have.
Edit: Thanks for the neg :-)
https://www.productreview.com.au/p/hsbc.html
199 people can't be wrong!
Cheers
I agree with all the above. Was looking at signing up for their premier package through work and it took forever just to go back and forth.
May be i was lucky enough as i had the relationship mgr through work chase me for 2 weeks. Offered 3.55% with offset as well. The george street branch also followed up pretty quickly !
Try to negotiate with your current bank first and see if they give you a good deal for variable rate/offset.
If it is around ~ 3.8 - 3.9% tell them that you will proceed. However if they charge you a yearly fee ~ $395, they will deduct that first when you change. Try to get them to waive this fee.
Then shop around other banks for a better deal. Usually they give you around $1500 for changeover (which should pay for all your transfers anyway.. )
If the other bank has given you a better deal, email your current bank and see if they can match.
1 - Don't forget, a variable rate with 100% offset interest will be slightly more than a bank without offset.
2 - Also factor the value of your house regarding LMI with another bank. But then if you owe $320, I'm sure you will be way under LVR unless you have purchased a Chicken coup :-)
Otherwise, you can always go to a broker that can get you a good deal.
Cheers
Yes LVR should be fine as we paid a 20% deposit when we bought so assuming the value has gone up and not down then no issues.
I'll contact the broker I used the first time around and see what they have to offer.
Cua is worth a look
But , aggree, maybe renegotiate wtih your current lender.
https://www.cua.com.au/loans/home-loans/advance-variable/#im…
I think Bank of Sydney is 3.54% - saw sign outside a branch in chullora just this afternoon
Reduce Home Loans … Been on 3.35% for 14 months :) no offset as redraw is fine for me.
How do you find them?
Is this an online institution or has branches?
I am sure that there are restrictions with this loan package? .. redraw fee/certain redraw limit?
Cheers
Reduce have been great. Nothing special with my circumstances .. just a $400k loan at about 50% LVR.
Easy and quick sign up and settlement. A few extra upfront fees, but caught that up in a few months with the great rate.
No bumps to interest rate in 14 months.
Online only. I don't have time to stroll into a branch and queue for ages anyway. Day to day banking with BankWest but have never visited a branch. I guess if you don't have a phone or Internet, then Reduce may be harder to setup. :P
Thanks.
Just to confirm, is that 3.35% or 3.39%?
http://www.reduceloans.com.au/variable-home-loans/rate-buste…
Do you mind me asking you, how do you track your loan? Do they have an app or can you access online (login) or call them to find out progress or make transactions?
Edit: I can't even get this answer with them on the chat. Wow they can't even answer a basic question lol! They said that a specialist will call me. Tbh, I don't want to be bombarded with phone calls like iSelect and the like.
Cheers
Rate was a bit less 14 months ago at 3.35%. Advertised rate has bumped up slightly but they haven't tried to change my rate.
Online access to mortgage-ezy website. So just login to check account. I do all my day to day banking & credit cards with another bank, so I have logged in only once in 14 months. It's a 30 year loan, so no rush to check progress. Nothing to see there with my mortgage account.
The benefit of just having the redraw and no offset, is that I can just set it up and forget. If I win $100k, I can drop it into the redraw, but for $1-2k, I can't be bothered paying for an offset, and not worth putting into the redraw.
My reduce contact was awesome. Quick email replies and docs and loan was done in about 2-3 weeks.
HSBC = http://www.hsbc.com.au/1/2/homevalue?cid=AUH:pa:P0:MG:01:180…
If you need a Relationship Mgr contact in Melb, PM me.
Talk to a Mortgage Broker.