anyone used this? the yields are too good to be true, but then i realized it's owned by CBA. do they use the oldest trick in the book and jack once you're in? can't find any reviews.
anyone used Unloan?
Gerry H on 07/09/2022 - 21:30
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If thee is no exit fees what is the worst that can happen?
Whilst their rates are reasonably competitive, note that they haven't yet passed on the August rate rise, and as such they're 2 rate rises behind:
Our interest rates will increase by 0.40% p.a. on 22 Sep 2022 (following the RBA's decision on 2 August to raise the official cash rate by 0.50% p.a.)
Their OO variable rate is currently 3.14%, but factoring in the 0.4 point rate rise, it's 3.54%. Still a great rate. Tic:Toc, which has passed on the August rate rise and generally has some of the lowest rates available, advertises 3.59% or OO.
Working out if a particular rate rise has been passed on in the advertised rate does make comparing loans hard. Having a lender that takes over 1 and a half months to pass it on (meaning there can be periods where 2 rate rises are not factored in) will make their rate look lower (when rates are rising) than they will be in the long run in once rates stop rising. Don't get me wrong - not going to complain about it taking longer to pass on a rate rise, but once the rates stop rising as aggressively, that benefit is lost. Also, we're yet to see if they take just as long to pass on a rate cut.
my folks are currently with CBA and their investment loan will be 4.86% after the september hike, vs 3.84% of unloan. so it's huge difference. they've already done their best talking to CBA about lowering the rate, before the 2 lowering this year it would be 5.35% instead of 4.86%, so they have to change CBA will not drop anymore. it's as if CBA wants to cram people into unloan.
Have they tried jacking up the rent? Could help to cover interest rate increases.
If you're using that slider they provide to determine your rate in future years - it's meaningless, the rate will change (up/down/who knows) and 0.01% PA every year equates to almost nothing and ignores any other rate changes they do.
Looks like a complicated way to try and cover the real costs/rates.