Athena/Tictoc vs broker for casual hospitality worker

Genga on 07/02/2022 - 14:30
Last edited 07/02/2022 - 14:31

Online lender (lower rate) vs mortgage broker (higher rate but potentially better placed to secure approval due to covid affected/casual income)

First home buyers who are looking to buy with a 20% deposit.

Have been chatting with a broker recently who has suggested Macquarie Bank with a 50/50 split loan 2.24% variable / 2.24% 2yr fixed. (not fussed on the split loan, this was just his suggestion)

Originally wanted a broker as my partner is a chef who works casually, and was affected by Covid last 2 x financial years. He's a long term casual at his restaurant (9+yrs).

Would be a joint application with other applicant fulltime ~$120k/yr.

We've only just cracked the 20% deposit mark, so hadn't looked at some of the online lenders beforehand as I assumed that the sub 20% deposit and casual worker combo would be a red flag.

I can see TicToc have a 1.89% rate at the moment and it looks like we'd actually be eligible from what I can tell. I just wasn't sure whether a broker would be better placed to explain how covid has resulted in a lower ytd income, and position us better, at the consequence of a lower rate with an online lender where we may not have the opportunity to give that context around income?

Does anyone have any experience with tictoc/athena etc and casual employment / hospitality/ covid affected incomes?

Financial

Comments

  • Almost Banned on 07/02/2022 - 14:43

    Well, you'd want to check with Athena but as a no-frills type lender I wouldn't be surprised if your partner's casual employment caused them some issues.
    That said, I am with Athena and found them great so far.
    It can't hurt you to give them a call.

    • Genga on 07/02/2022 - 15:43

      Thanks - Yes, I got the impression that TicToc might be more accomodating than Athena - they do 10% deposit and say they accept casual employment etc - might be worth a call. The rate is tempting, but can always refinance down the track once we're not newbies anymore!

  • rektrading on 07/02/2022 - 14:48

    We've only just cracked the 20% deposit mark,

    Don't waste time being picky with lenders. The 20% deposit today will be 19% tomorrow.

    Buy ASAP when real estate is still cheap.

  • KK on 07/02/2022 - 15:16
    +1

    If I were in that position I would go with the broker. I dont wan't any hiccups in an already emotionally stressful and unarguably most expensive purchase of my life. Can always refinance after a year. I know I am talking about paying higher rate but I believe its worth it.
    All the best.

    • Genga on 07/02/2022 - 15:44

      Thanks for your reply - I think i'm leaning toward the broker too. I would like my hand held a little through the process and know I won't get that with an online lender!

    • JDMcarfan on 07/02/2022 - 16:23

      ^This. If you want to shop around later and get a re-fi or some sort of equity release for reno's then a broker and bigger lender would be beneficial.
      You want to get your foot in the door and Macquarie is competitive worry about saving the smaller $$$ later. A recommendation would be to go 100% variable so to give yourselves flexibility if your needs change and expenses come up (as they do with house purchases) and to allow you to move providers without constraint.
      That 0.35% would be around 3k a year on 800k so is notable, but the potential to use a broker and get a larger loan limit should pay dividends much larger than that.

  • offerd on 07/02/2022 - 15:26

    Personally, I found Athena to waste time and was a joke.

    It meant I had to change my plans entirely due to the market movement.

  • nedski on 07/02/2022 - 15:48

    Go with a broker as if you try with TicToc or Athena and they decline you, they have pinged your credit file which affects your credit rating. I was trying to refinance to these idiots and they declined and it hurt my credit score. When I went to a broker who approved it, he had to do a lot of sweet talking to the bank due to the credit score.

  • ddhar on 07/02/2022 - 15:53

    I would always go with whichever gives me the cheaper rate. That said, check that Athena or TicToc will actually lend you the amount you wish to borrow. Smaller lenders are generally less willing to grant larger loans compared to the big banks.

  • Seraphin7 on 07/02/2022 - 20:07
    +1

    Go with the broker and get yourself set.

    You can always refinance down the road, but I would assume the first priority is to get finance/make a purchase. Giving up 35bps for a year will look cheap if it secures you what you want now.

  • Sweet3st on 08/02/2022 - 10:47

    I suggest you try Tic Toc, don't bother with Athena, and also talk to broker. Best case you get a loan at 1.89%, worst case you have one hit on your credit. Broker won't be able to get such a good rate for you.

  • dwhcom on 09/02/2022 - 10:41

    I went with TicToc after my application with Athena got declined. Both tend to favour the more cookie-cutter scenarios, I guess for me, TicToc was bit more accommodating for my situation. Happy with the rates and the offset account, not so much with their internet banking (no native app, real basic web app), and the fact that when you're on variable you don't automatically get the rate that is advertised (advertised is for new customers only, and I had to call them up to match mine to the advertised, which they did).

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