Yes I saw Reduced home loan post, also I saw comments for their previous posts.
I am with Athena for about 7 months. Simply they are Awesome!
Yes I saw Reduced home loan post, also I saw comments for their previous posts.
I am with Athena for about 7 months. Simply they are Awesome!
$250 credit each for referee and referrer.
What does aka mean?
I think he means that an average property costs $500k and you need a 20% deposit so that means you need $100k, for new customers I assume.
Also Known As
Currently with CBA 3.40% pa. Probably should look into changing
Damn, is that after the rate cut?
Yeah. Was 3.8 to start with. Haven't really reduced much, has it?
Depending on your stats, should be around 3% as a norm, give or take.
JFC please change, that rate is making my eyes bleed
I didn't realise it was this bad. I got my loan from April 2019. Don't know after how long loan provider can be changed
You can change at any point in time, however if you have a fixed loan there will be costs to break that and they can be substantial depending on the remaining balance and remaining duration on the loan. If you're full variable then the costs to refinance are generally reasonably low and you can do it at any point in time.
The first step should be to go to your CBA, tell them (politely) that their rates are terrible, pointing out the other offers available on the market, and asking that they improve it otherwise you will regretfully have to refinance elsewhere.
same here, looking to refinance. But problem is, just start new job…
If you have been in the same industry for 12-24 months, some banks would be willing to make an exception. Feel free to DM me. I'm a mortgage broker :)
Don't be afraid to ask CBA for a reduction. I did early last year and they obliged.
Then I got a loan top up and asked for another discount, this time I was surprised when they agreed again.
I'm on 3.07% after this cut takes effect. With a smallish $300k loan, so if yours is larger you really should be lower than me.
What did you do, just ring up and ask?
I'm currently on 3.25% for my house and 3.73% for my investment with CBA. By comparison Athena are 2.59% and 2.99%.
I'm sick of the run around you get from banks, the delayed cuts etc so thinking of switching but worried about all the hassle and paperwork involved…
Yeah at first I went into the bank but quickly realised they have no power to make decisions anymore. They gave me the number and I pitched my case to them. I simply said I've seen many better offers from rivals and I'm getting ready to make the move but before I do, can you offer anything to entice me to stay? The first time their offer wasn't impressive but enough to prevent me going through the hassle of changing. The second time during the loan top up they exceeded my expectations and gave me a large cut. Seems like borrowing money is the time to really take a slice out of it (even if you don't need it and just put it straight back into redraw)
It's a game of compromise, they know you most likely are all words and won't really move but at the same time they know they have to do something while still maintaining a comfortable margin above the competetion.
All in all I got about 0.30% cut from memory (something like 0.12 and 0.18). Not world changing but I was already on a comparably lower "big 4" rate anyway so I was happy with that.
EDIT: I have friends who are mortgage brokers, they all told me it's more effective at this time to approach the banks yourself. The extra processes they have to deal with at the moment may make them less effective on your behalf in this kind of task.
Do it every three months. Ring the bank. Say you are unhappy with the current rate and that you have pre approval at another bank (Eg Athena) at 2.59%. Can they give you something more competitive. The first time I guarantee you’ll get a better rate. 3 months later it will probably be better again. And just keep doing it. They don’t oblige, leave
We’re on 3.83% with ING….. after reading these comments I feel like we’re getting ripped hard. Breaking the contract is like $6K though so I don’t know what to do :(
You could refinance to a lender with 4k cash back to absorb some of the break cost. You should end up better overall. Especially if you have more than a year left of your fixed rate.
$6000 to break contract, wow that's criminal. Low LVR? How long do you have to wait until that passes? It's not for the life of the loan I hope?
Best bet as the guy above said, move to someone giving back up to $4k. Do the numbers and work out how long you'll take to break even on the remaining $2k, short term pain long term gain you'll find. Changing banks today, your rate should start with a 2. I'm happy at 3.07% with CBA but any new policy should be making that look bad or you're doing it wrong.
Yeah <80% LVR. Idk why it's that high to break contract but that's why they quoted me a few months ago. I actually don't know how long is left on the contract, that is a good question that I need to find out about. We've had the loan nearly 2 years now and it was possibly 3 years fixed, MAYBE 5 years. I don't remember.
@Smol Cat
Definitely do your research and do your numbers. I have a client with a similar break cost, but he will end up with no out of pocket, plus there is the refinance rebate. So, it's a win-win situation for him to refinance.
1) Work out how much interest you will pay, up to the duration of the fixed rate expiry.
ie $500,000 X $4% X 1 year = $20,000
2) Work out how much interest you will pay for the same duration if you refinance it to a better rate/product (same loan amount).
ie $500,000 X $3% X 1 year = $15,000
3) Work out the difference in the interest you will pay between both the loans
ie $20,000 - $15,000 = $5,000
4) Find out what is the cost to discharge existing loan and the cost/incentives for refinancing
(Remember to factor in mortgage release fee and mortgage registration fee)
5) Decide if there are any other reasons to refinance (ie gear up for investments…etc)
6) Decide if it is worthwhile :)
Also, most of the low rates quoted on this post are for owner occupied loans, >$250k, P&I repayments and most likely 80%LVR and below. Your rate will generally be higher if it's for investment or Interest Only…etc.
Thanks for the detailed reply, we are owner occupied with about 580K mortgage at 80% LVR 2 years ago, so I don't know what LVR we're at now but it'll be less. Looks like you've given me some maths homework to do tonight!
@audz: I worked out that we're on a 3 year fixed rate with 14 months left.
$291K owing @3.83% (fixed) and $267K owing @3.23% (soon to be 2.98% after the cuts are passed on).
I think the costs for breaking contract and refinancing everything will be around the $7K mark total.
I'm looking at this deal here: https://www.ozbargain.com.au/node/520206
But I'm confused about the CPR 4.40% bit, is that 4.4% comparable rate?? Why the heck is it that high? And '0.3% Bundle rebate' what does that mean?
Man I feel so clueless when it comes to all these home loans.
I moved from ING Direct to Athena and there was no contract break fee, how long ago did you take out this loan?
Is yours a variable loan tho? Coz they don’t have break fees. Or you fixed rate period has expired? I don’t know, I’ve had this loan 2 years, 3 year fixed rate.
Is this worth it after the government fees from 3.08%?
Yes
Cost to refinance is usually max around $800. Based on your rate about you will save $480 per 100k of loan you have in year 1. Although your current lender will probably drop rates from what it is now.
3.08 before or after yesterdays cut? And who with?
CBA and after yesterday's cut.
@RocketSwitch
CBA announced a reduction of variable rates by 0.25% p.a. for all new and existing customers. These changes will be effective for new and existing customers from Tuesday 24 March. So, you won't see the rate reduction on your account till then :)
They don't accept most self-employed applicants (except Doctors, Engineer, Dentist etc)
Got a loan pretty recently, rate isn't the best.
Definitely going to jump onto Athena when I've paid off the 20% minimum.
Whats your LVR and rate?
Actually, I borrowed 80% in the first place (which has been paid off a fair amount), maybe I can swap over now? I assumed I had to pay off 20% of the actual loan value.
Rate is 3.00%, they only passed around 0.15% each time it got cut so never got the full amount.
With FastLend too if that helps.
Thanks for sharing. Yes - in that case you should be fine to swap based on the LVR at least - as it would be less than 80%.
@Rhubarb Jones: Legend, thanks for the info! I was under the impression that I needed to pay off 20% of my loan, so this is better :)
I'll call up FastLend first to see what they can offer, just to avoid the whole rigmarole/fees involved, otherwise I'm hopping onto Athena.
@mangobango: @mangobango
As long as it's 80%LVR, you won't need to pay LMI and you'll get interest rates based on 80%LVR. A valuation will be done when you refinance and that's where the 80%LVR comes into play. If you new loan amount is 80% or less of the valuation, then you are good to go :)
Also, FASTLend is part of NAB. NAB announced they will decrease interest rates by 0.25% p.a., effective Friday 13 March 2020. So, you can use that as your discussion point with FASTLend.
@audz: Much appreciated audz! I was going to mention that on the phone, I went to ring them today on my lunch break but was on hold for a while so I'll call them later. There was an automated message saying "If you're calling about the recent rate cut, Advantedge haven't decided their rate cut yet", but I'll try work some magic.
There's also a decent amount of money mysteriously missing from my redraw which I need to talk to them about.
Lovely adulting…
Can anyone recommend someone who will loan for those with large acreage properties. One property is 60 acres, the other is 2800 acres.
the other is 2800 acres
Damn, can I have one?
Athena probably won’t be for those who aren’t doing comfortably with their finances.
They asked me to pay down an extra 50k on my $500k mortgage plus close every credit card I had.
Whats the approximate value of the property? (Or your LVR?)
I was pretty close to 80% LVR for the loan that I applied for
Yeah okay - so Athena needed you to be 80% or less?
Does commbank pass on these for investment loans? I'm on 4.05% variable… :(
How hard is it to change?
Was very easy to change from ING Direct to Athena for me. Not many forms to fill out or info to provide. 4.05% is a total ripoff
think i may need to make the jump…
Lots of fees?
Hey RocketSwitch, Athena does not charge fees - no application or valuation fees, no annual or monthly fees, no exit fees. There are no Athena fees, although when you refinance the Government will charge you for making the switch. We will increase your loan amount by $260 - $440 depending on your State, to cover not only these but also any minor changes to your existing loan balance right before the refinance. This helps speed up your refinance and reduces the hassle of you having to cover any shortfall on the day of settlement. Of course any surplus that isn’t needed goes straight to your nominated account at settlement, which you can choose to pop back into the loan and reduce the balance again. Also double check with your current lender if they'll charge you to leave them.
What was wrong with ing? My broker has just suggested them for me.
+1 also a happy customer, I don't regret moving from ING Direct to Athena a few months ago
Is Athena legit? Missus will wanna upgrade the crib soon I think.
Can anyone confirm the minimum loan amount? Currently around 160k loan and paying 3.32% with CBA
Usually 150k.
18 months into my mortgage and I'm looking at refinancing also! 3.18% dropping to 2.93% on 17th March.
It's either Athena's offer or NAB's $4K cash back offer.
Provided I get 2.84% with NAB (after drops) I am only paying $71pm more. That's ~50 repayments before I break even with Athena's offer.
My question is why would I go with Athena over NAB with this in mind?
It comes down to laziness, do you want to refinance once you get your Cashback cleared? (NAB to Athena)
Or do just want a low rate?
I suspect the path to the best deal will involve refinancing on a semi regular basis. Jumping between 'new customer only promotions'.
That's a good question - I can always move from NAB to Athena once cashback is cleared! Of course I probably couldn't do that straight away.
Yes it's more paperwork, etc. but I'm fairly organised. For a lot of people, $4,000 is a whole months' pay check!
There's no NAB application fee but I will have to look up government and exit fees to see what of the $4,000 I actually get to retain if I do it that way.
Don’t you have to pay the government every refinance?
Athena are new but have so far passed on every rate drop immediately and in full - None of the banks are doing this
Over 4 years (~50 repayments) I suspect Athena will have the lower rate for more of the time, so you will "break even" sooner than this in practice
I did try to account for this. The math was just over 56 repayments. Let's call it 40 repayments to factor in 'rate drops'. :)
I will be looking to refinance within 12 months of going with NAB if I went with NAB.
Hey wellzi it's totally up to you. There's nothing stopping you from refinancing regularly and doing what you've suggested, i.e. refinancing to NAB to get the cashback and then switching again later on. Just bear in mind that each loan application will ping your credit file and obviously it's always subject to affordability and credit assessment by the lender. Would be worthwhile to check total fees too.
This article might help your decision. We've written some pointers on how to spot scorpion home loans and avoid them https://blog.athena.com.au/insights/beware-of-scorpion-home-…. Also check the lender's history of passing on the RBA rate cuts.
That is a good writeup about scorpion loans.
At what frequency of loan refinancing would Athena start to raise eyebrows about the credit worthiness of a potential borrower?
Maybe it’s my bad luck, but the mobile lender I’m dealing with is absolutely terrible. So they’re either slammed with applications or I’ve got a dud, as it’s been nearly 2 months and we’ve barely moved on paperwork.
This seems to be a common theme with nab feedback I’ve heard being that it takes AGES to get anything done. I am hesitant for this reason. I’m booked in for a branch. We‘ll see!
My broker told me NAB are in overdrive mode and there is a 4 week delay before they even look at documentation for a pre-approval
@lachlanww Yep. I'm a mortgage broker and I concur. NAB timings at the moment are fully blown out!
Any links for that NAB offer?
@starbearer https://www.nab.com.au/personal/home-loans/offers
Many banks have refinance or purchase cash backs. Depending on your circumstance, some may be better than others.
I'm a mortgage broker. Happy for you to DM me.
Sorry if this is stout question - if I do get a mortgage where there is a minimum loan amount let’s $250k is there a minimum loan period ? Or if I have the remaining loan balance ready after 13 months can I pay off the loan and be done with it ?
Second question - if I have 50% savings is it better to apply for loan for remainder 50% or apply for 100% and deposit the rest in offset account
You would be able to apply for UP TO 80% as this loan applies is for 80% LVR.
No lender would give you 100% unless you had other properties that you were also willing to sign over.
You could put the remaining 30% into a redraw account (essentially the loan) but you must understand the differences between redraw and offset. There are some comments above that I believe explain this.
Cheers.
yes I understand the 80% requirement. I was assuming in the case that has been taken care of. I.e I want $100k, I have $20k deposit, and I know I will have another $30k shortly, so should the loan request amount be for $100k (less deposit 20k) or $70k (less $30k I have + less $14k depsoit needed on a $70k loan).
I guess I worded this poorly.
How do they compare to Homestar who have had deals on here before?
We went with Homestar at 2.74% last year - they have also announced passing the full 0.25% rate cut! Happy days!
So it’s cheaper than the ANZ rate of 2.68% by ~0.1%, without any cash back. For a 500k loan you’d save $500 a year or $1,000 over 2 years, but will lose out ~$3,500 cashback. Taken into account all the ANZ fees, you’d still end up with ~$1,500 more if you choose to go with the other deal, and got extra bonus like offset account, big bank service, premium credit card…. Am I missing anything here?
Which ANZ rate are you referring to? Do you have a link? Thanks :)
no idea why you got downvoted this is my thinking too
ANZ rate is fixed. You should not compare the rate between fixed and variable.
Close to 12 months on my mortgage with AMP taken at 90% LVR plus paid LMI. Sad I know but it was tough circumstances and I’m glad I bought in when I did. AMP rate currently is at 3.29% and no news of cuts from today’s announcement. I’m not at 80% LVR so can’t get Athena. Wondering if there are other options? Have good income and stable job.
@peanut48 Best to actually wait until you think you can get an 80%LVR loan (regardless of funder) because you have paid LMI. No point having to pay that again.
Thanks @audz that seems to be my best option for now, so annoyed that AMP haven't passed on the rate cut.
@peanut48 AMP announced this morning that they are passing on the full rate cut, effective 30 March 2020 :)
Think refinancing with one of the bigger banks might be a good alternative given everyone is passing through the rate cut.
What are the pros and cons of refinancing to NAB vs BOM/St George for the $4k cashback?
(offset not required)
NAB are not coping with the demand following the 2K/4K cashback offers. Their current ETA for new loans is 30+ days up from 5 when I applied.
I have been a NAB client for 12+ yrs and my application is still in progress after 1 month. Luckily I applied to CBA and managed to get non conditional approval in 4 days (1 day before cooling off period end)
In a nutshell, if time is important don’t go NAB they are pathetic!!
Rang Anz once seeing this.. asked my comparison rate which was 4.1% . Straight away they offered me 3.3% then escalated the matter for me. So fingers crossed I get it cheaper, find out tomorrow
Don't service my area. Bummer
Same. Why not OP?
Hey quarkz and oscargamer, so sorry :( It's not you, it's us. We are new and starting out super conservative so only doing the major population areas. We'll expand our reach as we grow. Hope we can help you both out later down the track!
Keen to get a home loan that allows one to implement a debt recycling strategy without much fuss.
What's the paperwork like on the redraw with Athena? Is it treated administratively like a separately loan so it's clear to see what the interest is for the new redraw? i.e will it be easy come tax time to claim the interest deduction for investment loan?
Has to be <80LVR, this shit is killing me. I have the income to service a loan but to get the best rates you basically have to have 20% deposit or higher. On a single income that takes a while.
May need to start thinking differently (ie opportunity cost).
Think of the "better rate" vs how much extra you may need to save. And also factor in LMI for >80%LVR.
Sometimes, it feels like you're running around chasing your own tail.
Hey mate, was in the same situation however a year ago I decided to get a 90% LVR, pay LMI and get into the market. I was fortunate it was that brief period where everyone feared housing prices were declining and had marginally declined. Best decision I made because if I waited to get to 20%, I would take years and wouldn't have been able to buy what I ended up with.
Agree with @audz to consider the opportunity cost.
Considering this lot. Does anyone know how to withdraw money from the redraw account, and how long it would take to hit the receiving account?
I was with one provider who required me to fill out paperwork to redraw and it took three days. I would be looking for a provider from which I could redraw through their site/mobile app and it would hit the account immediately/next day (like I can with CBA).
80% LVR for most areas :-(
AKA you need a 20% deposit
AKA you'll need upward of $100k ready to go