Flexible Home Loan Recommendations + Do All Banks Have Bad Reviews?

Gazpacho on 06/06/2019 - 08:53

Hi all,

I have 3 quick questions:

  1. Is it usual for all banks/home loan lenders to have low ratings online? I understand that people only tend to give reviews when they are unhappy (thus skewing the sample) - but their reviews are very off-putting
  2. Anyone had any experience with ING or AMP? Especially in regards to random interest rate hikes after you have signed up with them?
  3. We're looking for a loan with the following characteristics:
    a. Competitive rates (anything below 4%)
    b. 100% offset account with no limit
    c. Unlimited early repayments with no penalty
    d. Non exorbitant ongoing fees
    e. Non exorbitant exit fees

(LVR <80%, borrowing around $800,000)

Any recommendations?

Only ING seems to fit the bill of the above, until I read some online reviews that worried me.

Any experience greatly appreciated. Thank you!

Financial Home Loan Loan

Comments

  • oscargamer on 06/06/2019 - 09:12

    We have very similar needs to you and have used ING for a decade and like them.

    • Gazpacho on 06/06/2019 - 16:09

      Hi mate thank you for sharing!

  • Skramit on 06/06/2019 - 09:30

    We're looking for a loan with the following characteristics:
    a. Competitive rates (anything below 4%)
    b. 100% offset account with no limit
    c. Unlimited early repayments with no penalty
    d. Non exorbitant ongoing fees
    e. Non exorbitant exit fees

    To be honest that list of requirements narrows it down to just about every bank out there. Most will offer a package that fits your criteria.

    Think about some other factors:
    1. Is ATM access important to you? Deposits and withdrawls.
    2. Do you value a good iphone/android app?
    3. Do you want apple pay?
    4. Do you want the comfort of a lender with a branch you can walk in to (or an office you can visit)
    5. Do you want to have multiple offsets?
    6. Do you want a credit card included?
    7. Do you want the ability to walk in and get bank cheques without having to fill out order forms and wait overnight?
    8. Is the quality of the online banking important to you?

    You dont need to answer these, I'm simply thinking of things that will help you differentiate between some of the lenders. It's the little things that make them different these days.

    • Gazpacho on 06/06/2019 - 16:11

      Definitely thank you for the feedback, you have given me more things to think about

      Out of the list you've given me I note that I would prefer ATM access and high quality online banking

      Also the idea of multiple offsets has led me to look at Macquarie, will research further.

      I did note that often unlimited early repayments was something not clearly advertised, so I will be looking a bit more carefully at the T&C's

      So far I'm interested in

      ING
      AMP
      Macquarie (can't tell if they have unlimited early repayments so far)

      • Skramit on 06/06/2019 - 19:24

        Having an offset account is essentially early repayments.

  • YLD1 on 06/06/2019 - 10:00

    I'm taking a look at Reduce home loans and athena

    Just a no frills low interest loan so I can pay it off sooner

    • Gazpacho on 06/06/2019 - 16:12

      Thanks mate! Will be looking at these lenders too soon

  • Gandalf the Thrifty on 06/06/2019 - 10:02
    +1

    I've been with ING and haven't had random rate rises, that other banks don't do also. Eg small rate rise last year without reserve bank changing anything.
    ING are giving full 0.25 reduction this time, just later in month than others.

    • Gazpacho on 06/06/2019 - 16:13

      Interesting..with dig a bit deeper into this issue

      I've identified another issue, that many people complain about an ever widening gap between the advertised rate for new customers vs existing (and the bank not being willing to match it)

      • Gandalf the Thrifty on 06/06/2019 - 16:37

        That probably same with many banks though, especially if they know people can't refinance somewhere else with new lending rules.
        They will lower it if ask the right team eg retention team. I think customer service team can't do anything about rates so will get standard reply from them, maybe that is as far as the people leaving reviews got.

        • Gazpacho on 06/06/2019 - 16:38

          Good point, thank you!

  • sweefu on 06/06/2019 - 11:19

    Broker here.

    I find ING to be a terrific bank, and most of my clients that I place with ING stay long term. I am with them.

    The only issue they can have is they are not the most flexible bank - eg they are tougher than other on self employed income, and have a higher benchmark rate for servicing so sometimes capacity can be lower than other lenders.

    • Gazpacho on 06/06/2019 - 16:14

      Thank you, that is good to know!

  • arkie0 on 06/06/2019 - 11:46

    Is it usual for all banks/home loan lenders to have low ratings online? I understand that people only tend to give reviews when they are unhappy (thus skewing the sample) - but their reviews are very off-putting

    Due to rate rises outside of RBA rate changes because people aren't aware of other factors that can move interest rates (such as APRA changes, borrowing funds outside of AU thus affected rate changes OS) but usually this affects all banks, thus everyone gets angry and posts negative reviews.

    Anyone had any experience with ING or AMP? Especially in regards to random interest rate hikes after you have signed up with them?

    I've been with ING for one of my loans for years, no issues with them. No random rate changes. Customer service is not as good as they were 10 years ago, but probably the same across the industry. They usually don't rate match once your with them.

    Any recommendations?

    tictochomeloans

    • sweefu on 06/06/2019 - 12:18

      Why tictoc?

      Have you had any experience with them?

      • arkie0 on 06/06/2019 - 12:26
        +1

        Based on OP's requirements.

        Haven't signed up with them but service was great when talking with them initially.

        Wait to see if they pass the full 0.25 they should be at 3.22 if they pass the full cut, 10$ a month for offset.

        reducehomeloans is 3.24 with offset, that might be better.

        As a broker, would you have any of these online lenders on your panel?

        • sweefu on 06/06/2019 - 13:57

          I don't have tictoc or the new Athena on panel so very curious about their process.

          However, i find i'm able to get (almost) comparable rates from more established lenders

      • Seedy seed on 06/06/2019 - 16:16

        I went through tictoc. Your dealing with bank of adelaid on the loan side. Its been great so far 13 months in.

    • Gazpacho on 06/06/2019 - 16:16

      Thank you, this is positive for ING!

  • Gazpacho on 06/06/2019 - 16:15

    One extra question I now have is:

    What is a rough average estimate of the all-in cost of moving banks (say if rates become unfavourable)? I'm seeing a wide variety of different fees involved all with different ranges

    • YLD1 on 06/06/2019 - 17:15

      Big 4. I'd factor anything from $800 to $2000

      loan establishment fees
      property valuation fees
      bend over and applying vaseline service fee (makes the pain easier when they dont pass on rate cuts)

      smaller brokers hit you with fees depending on your mortgage amount
      anything under $250K they charge you fees since they dont make much money
      But for over $250K mortgage it could be free (through promotions) or $400 to $1000
      Note some smaller places actually give you a bonus of $1000 to $2000 to refinance with them

      • Gazpacho on 06/06/2019 - 17:32

        Thank you, that is very helpful!

        It sounds like one would definitely need to compare interest savings (for the rest of the life of your loan) vs the up to $2000 one would spend to break at that point in time

        And I will definitely ask for bonus/rebates when changing in the future and see how that goes

        • Skramit on 06/06/2019 - 19:27

          A good mortgage broker can get a lot of these fees waived.

  • movieman on 10/06/2019 - 15:42

    Athena. Go for it.

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