Browse Forums Home Finance Re: Banking finance and Non-banking finance for Home Loan 2Feb 25, 2008 11:05 am After 4 years - we're in! Re: Banking finance and Non-banking finance for Home Loan 3Feb 25, 2008 11:22 am Quote: 2. We wanted greater security for our loan - many non-bank institutions obtain money by selling your mortgage in an overseas market like the US - while they have some strict reporting & liquidity requirements - my understanding is the banks are more strictly regulated. Therefore - you are less likely to be required to pay the balance of your loan at short notice if the lender goes bust. I was not aware of this thing at all ... i think thats is most scary things for non-banking institutions. And I was not aware that they are selling our mortgage in overseas market. Does banking institutions also does the same thing to get funding or they have their other source of funding ?? Re: Banking finance and Non-banking finance for Home Loan 4Feb 25, 2008 12:07 pm Yes - banks also get funds by selling your mortgage overseas - however, my understanding is the Aust Govt regulates them more heavily - so it's unlikely to see a big bank go bust overnight. However - with smaller lenders - it can be a risk.
I'd strongly suggest speaking with either your financial advisor or a mortgage broker. After 4 years - we're in! Re: Banking finance and Non-banking finance for Home Loan 5Feb 25, 2008 12:14 pm Hi Kanchi,
We're going through Myrate for our home loan. We bought our place last October and it's been a 4.5 month settlement, so I've been dealing with them for a while now and they've been great. Although they're a non-bank lender, they're backed by ING so they're not as risky as some of the other non-banks like RAMS. From their website: Quote: MyRate is funded by ING Bank (Australia) Limited, part of one of the largest financial institutions in the world - so not only do you get one of the lowest interest rates in Australia, but additional peace-of-mind in a turbulent global financial market. Our funding is secure and stable and as such, we are structured differently from most non-bank lenders. More reasons why your MyRate loan is secure: MyRate's funds come from ING Bank (Australia) Limited who enjoy a S&P rating of AA for long term funding, the highest rating of A1+ for short term funding and have secure and steady access to funds MyRate has a completely different business model and funding structure from RAMS and other non-bank lenders. MyRate do not fund through the capital markets using securitisation. MyRate does not operate in the sub-prime market. We are a prime lender. MyRate is committed to maintaining our competitive pricing and delivering stability to our customers. Re: Banking finance and Non-banking finance for Home Loan 6Feb 25, 2008 2:52 pm Hi Kanchi
Another option is to use the online branch of a big bank My lender is HomePath - the online part of Commonwealth Bank They're much cheaper than CommBank, and you can ring them up for help. But you can't walk into a branch if you have a problem. Doesn't bother me though, I do everything online! Building a Jandson Espirit in Pennant Hills "What is the use of a home, if you haven't got a tolerable planet to put it on?"Henry Daniel Thereau Re: Banking finance and Non-banking finance for Home Loan 7Feb 26, 2008 1:07 pm ![]() Although they're a non-bank lender, they're backed by ING so they're not as risky as some of the other non-banks like RAMS. Rams were recently bought out by Westpac but will still trade as RAMS so their backing is now quite substantial. Re: Banking finance and Non-banking finance for Home Loan 8Feb 26, 2008 2:29 pm hmmm, myrate.com.au is getting more and more popular.
I went with them last year when i was building. Fairly easy to deal with, and they had the lowest Interest Rate. Furthermore, they allow us to put in extra repayments during the construction period, which is very rare. Most bank and lenders only allow interest only during the X amount of months of construction. anyway, i always prefer non-bank lenders due to the 0.25 % below the normal banks interest rate. Re: Banking finance and Non-banking finance for Home Loan 9Mar 18, 2008 1:51 pm Hi KanChi, What you may need is someone who can help you through this process and make sure all the angles are covered. The major lenders do this all the time and know what they are doing so generally the process runs smoothly. A broker will deal with them and, in many cases, avoid trouble by being focused on your file and following its process. Sometimes the saving is not worth the hassle of having to do it all yourself. I have had to refinance several clients as they were not getting the service and answers they were seeking. The cheapest loan is not necessarily the best loan for your situation. The last thing you want is to pay exit fees for a loan that was never right for you in the first place.
Regards, Dean Lynch [i]Principle Mortgage Consultant Re: Banking finance and Non-banking finance for Home Loan 10Apr 09, 2008 12:05 pm good answer on the exit fees Dean a major issue that most people ignore at the start as everyone thinks their loan will be for life only to find it doesnt suit after 18 months,
In this climate i'd say to stay with the banks, not pushing my own barrow, doesnt bother me where you go as long as you and your borrowings are safe. In times like these the banks can control their rates more than the non bank lenders, there all also more features and dare i say easier to deal with if you find you are in any kind of hardship Re: Banking finance and Non-banking finance for Home Loan 11Apr 09, 2008 8:32 pm Quote: Furthermore, they allow us to put in extra repayments during the construction period, which is very rare. Most bank and lenders only allow interest only during the X amount of months of construction. Our credit union allows us to do this too. Re: Banking finance and Non-banking finance for Home Loan 12Apr 15, 2008 2:44 pm greetings,
forget the interest rate it really doesnt count. what counts is the way that the bank charges the interest. interest is charged daily and placed into a pool so that at the end of the billing period it will be charged to the mortgage. The best idea is to get a 100% transactional offset account (ABL) or line of credit (every bank). I save my clients on average 11 years and almost $200K off their loans. All they need to do is stick with the plan.... have their pays placed into the mortgage or offset account and use a 55 day interest free credit card (properly) which is swept monthly. Not all banks will tell you about their best accounts as they want your money! profit on your money generally equates to 38% or more over 5 years. I like to think i can get it down to 11 to 19%. Good luck and research before signing. BoomerJ Re: Banking finance and Non-banking finance for Home Loan 13Apr 15, 2008 7:03 pm Line of credit loans are NOT for everybody and there has been much written about how many people get into trouble with them and how they have been over-promoted with little regard to how they will be managed in real life.
"All they need to do is stick with the plan.... have their pays placed into the mortgage or offset account and use a 55 day interest free credit card (properly) which is swept monthly." In practice, this doesn't work for lots of people, I guess it goes too against the grain of how they are used to using their money. I am quite disiplined with money but definetley prefer to have my money 'segmented' and do not wish to go down the line of credit route. I agree, the interest rate is not the be all and end all, but it is certainly a big factor. We are with a credit union; credit unions especially the smaller community based ones, in which all members are share-holders, are not so profit driven and offer their customers the best product for them. We were offered a line of credit, it was not an option 'hidden' from us. I am quite happy with the deal with our credit union - competitive interest rate (unlike major banks, rates were not lifted above the reserve bank increase), no account keeping fees, no loan service fees, unlimited re-draw facility, capacity to pay interest and principle during construction. make extra repayments, reasonable loan application fees ($400) no exit fee etc. Re: Banking finance and Non-banking finance for Home Loan 14Jun 16, 2008 8:41 pm Well friends, I have bad credit. No credit card debt…just various debts that are 6 years old. I have no savings, so would have to be 100% financed. Everyone tells me that first time home buyers can get loans easy, but every realtor I have tried to get a home loan through says no. Is there some lending agency that can help me? How do I get a home loan approval? All help will appreciate. Re: Banking finance and Non-banking finance for Home Loan 15Jun 17, 2008 8:52 am ![]() Well friends, I have bad credit. No credit card debt…just various debts that are 6 years old. I have no savings, so would have to be 100% financed. Everyone tells me that first time home buyers can get loans easy, but every realtor I have tried to get a home loan through says no. Is there some lending agency that can help me? How do I get a home loan approval? All help will appreciate. I will be honest and i am sorry if its a little harsh, but you probably should sit down and take a very very long look at your finance and decide if a house is for you rather than listening to your friends and the ads for easy credit. 1. With no savings and some personal loan/car loan type arrangements you are going to be viewed in a very negative light, some banks might want to roll this into the home loan others will simple not offer you a product. I would guess you will end up paying a premium rate through a 'specialist' lender because of this situation. 2. You haven't been able to clear some debts which i am guessing are allot smaller than a home loan in 6 years, have you actually got a budget or are you just rolling through waiting for the lotto numbers. 3. You wount be 100% finance you will be 100+% by the sounds of it, FHOG might clear the stamps on a less than 250k place (in victoria) but anything more and you need to pay for these stamps, also being over 80% you will have Lenders Insurance, in your case being well over 80% this depending on your income might be quite pricey so this will be added to the loan. If you seriously want a home getting quick and easy credit probably isnt the option. Draw up a budget covering fixed living costs like gas, elec, phone, internet, rent, car. Make is really simple so monthly is probably the easiest to work out. Compare this to your incomings (for most people income) look at the difference between the two figures, work out what you need to maintain a life style (i call this play money/discretionary/personal) now what you have left over is the key. With this work out how quickly you can clear your current debt. Then how long it would take to get ~12.5+% for a house deposit (so by the time stamps and lenders insurance is paid you are still at 90%) While you are here look at this left over money + your rent will you be able to cover a home loan, its very important you think about this because while the banks have calculators they will run they are happy for you to live on cat food in the dark with no heating ... I know its boring and crap but its easier at this end to setup your self up rather than try and clean the mess up. Failing that if you are on some nice healthy income (Single 200+, couple 150+) you might be able to roll your random debts into a personal loan and borrow for the house deposit then go through a more main stream lender, not get shafted on the rate, and work towards paying this high interest personal loan off while in the house. Buying a house is easy, affording/financing/live with the house is the hard part. Re: Banking finance and Non-banking finance for Home Loan 16Jun 17, 2008 9:39 am I strongly suggest you wait.
Our sales consultant suggested we do not build a house at the time we initialy approached M@tricon. This was the best advise we ever received. He went through our situation (the sales guy not the finance guy), gave us some suggestions and we came up with a plan. His attitude was that he is happier selling homes that people will be able to conmfortably afford and appreciate rather than spending their life worriying about it being ripped out from under them. We came back a year later, with credit cards gone and a personal loan severly reduced. He ws able to get us into a bigger house than we wanted, and we have never looked back. If only there were more ppl like this in the world. As mentioned Do not be afraid to wait till your situation improves. if you can demonstrate you have stuck to a budget, and reduce your debt, you may e more attractive to borrowers. Adrian B Re: Banking finance and Non-banking finance for Home Loan 17Jun 17, 2008 12:23 pm Did you see the 4 corners program on the ABC a few weeks ago about people over-comitting to credit and then gettting their houses repossessed?
It may not be what you want to hear but Sirgoat and Adrian have some good advice. Sure, if you look hard enough you may find a lender who will lend you the money - but at very high interest rate and many added charges, including MLI which is very expensive. We applied to borrow 100% of our construction loan and found this out, it will be much higher than you expect! (Fortunately, credit union exempted us from paying it due to our assets equity- ie although we had no savings, we owned our own house and an investment unit outright) Perhaps seek the advice of a financial counsellor - set up a realistic plan which can get you into your own home in the long run Re: Banking finance and Non-banking finance for Home Loan 18Jul 02, 2008 6:47 am ![]() Hi Experts, I was looking for bank loan for block of land which I have purchased in Berwick. That land is about to release in March. I got an approval from commbank when i booked that block of land. But then I did bit of research about other finance institution. I come to know that there are few non-banking institution which are offering home loan at really nice interest rate e.g. myrate. I find it offering most lowest interest rate so far. I also talked to couple of blocks recently. They all borrowed from banks. And they all knew about cheaper non-banking finance. I asked a reason, but they even dont know even. Does anyone know is it good to go for non-banking institution for finance? Why people not prefer? Any risk factor involve in it? What benefits banking institution offers that non-banking institution doesnt? http://www.myrate.com.au Please advise me. I am really confused with bank loan. Regards, KanChi Banks lend to a lot of people some of whom default, so they charge higher to make up for losses elsewhere, a small lender on the other hand, can choose who they lend to more carefully. 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. Im going to build two frames (pretty much a room within a… 0 29464 Building Standards; Getting It Right! Hi, yes, we have the report. The builder has rectified the items on the report and we’re moving forward with the build. Thanks for reaching out 2 15712 My building rep is an inspector , witness expert and a builder. The services that he is doing for me is helping me with my project and representing me when I need help… 6 25219 |