hi, looking to refinance for lower rates. im looking at ubank and ing. does any existing customers have issues with lots of spontaneous rate rise independent of RBA? i read quite a few people had this issue with reduce home loans, their rates went higher than big 4 after some rapid rises.
Smaller banks and rate rise
Gerry H on 13/06/2019 - 07:06
Comments
wats ur current rate? so stay away from non bank lenders? wat about direct banks?
athena HL 3.34% var
no back book pricing (aka existing customers get same rate as new customer)
yea ive been reading athena threads on this forum past few hours. havent seen anyone complain about random rate hikes yet. is the back book pricing their goodwill or in their contract? u can never be sure of things that are not written in contracts…
it won't be in your HL contract, don't think a HL contract will say such statement
but it's not just a goodwill either,
it's on their policy and advertisement
I just wouldn't recommend Loans.com.au - im with them, they occasionally hike rates, they dont pass on the full amount.
I also wouldn't recommend Reduce Loans, I tried to refinance, got conditionally approved pending valuation, they took the valuation fee, then advised they couldn't get a bank to provide finance given the type of property (it was a unit) - they didnt actually conduct a valuation, they refused to refund the valuation fee. Had to take them through the finance tribunal to get the valuation fee back…Reduced Loans are brokers. After taking your money you will deal with a non bank lender called Mezy.
They do increase you rates out of RBA to get ahead. I am currently on 3.59% and not a word of when and if they will reduce.
To avoid honeymoon rates, at the present time I would try Athena.
no, it's a trade off, our small non bank lender offer new customers better rates, raise them, and (maybe) lower by 5 percentage points once a year on request/grovelling for a rate review. Currently paying about 25 percentage points above what I should given they offer new customers a headline rate. Will be moving once I get round to it, only advantage is low fees and fully offset, but the compromises and business practices have annoyed me too much, looking forwards to being mortgage free soon!