Browse Forums Home Finance 1 Nov 10, 2010 2:02 pm Hi All, Do you have any experience with non-bank lenders such as My Rate, HomeStar, State Custodians etc...to share? Most of them have more competitive interest rates, terms & conditions as compared with banks but are they reliable? I am wondering if relatively, their valuation are lower than the banks. If I am not wrong, for example, their late fees are higher. Homestar has a fee called "Arrear Management Fees" which is $100. But banks like Commonwealth or ANZ charges $20/$25 for late payment fees. I wonder if both of these are the same. Re: Your take on non-bank lenders (eg MyRate, Homestar..)? 3Nov 10, 2010 7:50 pm Another vote for a credit union here: we have all our finances with xyz credit union: interest rate was slightly higher than banks but this was far outweighed by other advantages - much lower loan establishment fee, no account keeping or loan service fees, no limit or charge for lump sum additional payments, no early termination fees. While a credit union is different from a bank - in that it is a non-profit organisation, rather than one earning for share holders - I dont think it is comparable to on-line lenders like Virgin Money and co - whose interest rates were lower but they had huge exit fees. Cannot comment on their valuations as this was not an issue for us - we had large amount of equity from existing property. Quote: If I am not wrong, for example, their late fees are higher. If you get your loan repayments taken directly out of your pay, this shouldn't be an issue anyway. Re: Your take on non-bank lenders (eg MyRate, Homestar..)? 5Nov 11, 2010 2:09 pm We are with Members Equity and have been for years. If you are a Member of a Union or Super Fund, you will get the lower interest. Check out their sight they have a list of Unions and Supers that qualify. We are paying 6.99 variable, they have not announced what they will be putting them up to yet, but normally lower than the banks. Their are no fees, none at all to set up the loan. We have never had a problem with them and they are quite big, not a small lender, the Unions will not allow them to put their interest rate up as high as the others. Re: Your take on non-bank lenders (eg MyRate, Homestar..)? 6Nov 11, 2010 6:16 pm There are plenty of non-bank lenders that offer very competitive products. The 2nd tier banks such as Suncorp, ING & AMP are all quite good too. However AMP is a bit too popular for their own good this week and their turn around times have blown out. It's really good to see you that you have all been supporting the credit unions. The big banks are getting too big for their boots. FirstMac was fantastic until they withdrew their FightBack II Pro Pack. That was very cheap & their service is excellent. The online lenders usually have a low rate & poor service. There isn't much point in getting a great rate if you miss out on your dream home because they couldn't get the approval in time. So I wouldn't risk it with a purchase, but maybe with a refinance. Once the online lenders have been around for a 3 years or so then they tend to put up their rates on their customers. HomePath did that & they were backed by one of the majors. The commerical reality is that they just don't make any money, they have to do something sooner or later. Re: Your take on non-bank lenders (eg MyRate, Homestar..)? 7Nov 12, 2010 10:40 pm I remember a company called 'wizard' that was exactly the same as the non bank lenders you mentioned initially. Ask any ex wizard customer how that turned out? I like the second tier lenders as well at the moment, especially since the latest rate rise from the majors..... Re: Your take on non-bank lenders (eg MyRate, Homestar..)? 8Nov 13, 2010 10:47 am Standard Home Loan Interest Rates Contract duration Eligible Members Non Members Rate Comparison Rate ^ Rate Comparison Rate ^ Variable 7.24% p.a. 7.24% p.a. 7.69% p.a. 7.69% p.a. Fixed 1yr 7.29% p.a. 7.25% p.a. * 7.49% p.a. 7.67% p.a. * Fixed 3yrs 7.39% p.a. 7.29% p.a. * 7.79% p.a. 7.72% p.a. * Fixed 5yrs 7.99% p.a. 7.59% p.a. * 8.19% p.a. 7.92% p.a. * Members Equity have only lifted their rates as per the Reserve Bank. These are the new rates, the rates on the left are for eligible Super and Union Members. Good on them, for not being greedy like the big banks. Re: Your take on non-bank lenders (eg MyRate, Homestar..)? 10Nov 15, 2010 9:02 am 1. CUA - offers a discounted variable rate for >$250K. low exit fees of I think $350+ $200 within 4 years. Offset account with no ongoing account fees. But you have to submit application form to redraw additional funds. This is inconvenient as I am looking to use salary crediting and free redraw to minimise the interest payable. 2. AMP - low interest rate but redraw charges at $50. Although mortgage offset account available at no extra charges, I cannot make use of redraw facility and hence I will not setup salary crediting which will then increase interest payout 3. Member Equity is very competitive as it practically has no fees for almost everything. But if I am not getting the member discount rate, it is higher than most others. 4. ING has currently competitive rates for loan > $300K, else the rate of 6.96% is quite high? The Orange Everyday transasction account is a good thing and they have $1000 payout for those who switch to them. But their DEF and exit fees are quite high. Re: Your take on non-bank lenders (eg MyRate, Homestar..)? 11Nov 15, 2010 9:00 pm You know you can just use a mortgage broker. Unbiased opinion of course! Re: Your take on non-bank lenders (eg MyRate, Homestar..)? 12Nov 16, 2010 1:35 pm I'd recommend having 2 or 3 appointments with different mortgage brokers, they'll give you some decent answers when comparing loans. It's often the smaller things that should sway you to go with a particular lender. From a pure legal perspective, if you've signed the variation, it is a very high bar to have it set aside. No-one can give you legal advice on a forum, but you would need… 3 5480 Thanks. There are plenty of builders around my suburb. I'll make sure to do some door-to-door knocking, or note their building details on the temp fence. 4 4752 Building Standards; Getting It Right! Long story short, a toilet room is going to back onto our main bedroom and I want to make it close to soundproof. 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