90% LVR - which banks offer this?

I mentioned deals above $500k (loan size - not purchase price) - the LMI costs in that instance is a lot more.

 

Hmm for 575k it definitely doesn't make sense IMO on pricing alone. Its niche is related more towards servicing product, rather than a pricing one related to 85% deals.

Even at $1mill security (max loan size under Peppers product), it doesn't make much sense. LMI is about 12k on this type of deal. 1%+ rate difference will be 9k in one year. $1k in fees on the Pepper product. Rebates with Dragon, lots of providers on O/O debt.

Anything beyond 12 months and your out of pocket. Leave before that and your likely going to be in a clawback window.

Breaking it down, it seems like a product differentiation with the 85% no LMI offer that ends up worse for the consumer whichever way you work it - Pepper get you on the rate loading and end up ahead.

I'm not quite sure who the product is targeting anymore, probably for low scoring credit histories/low servicing PPOR purchases/low deposit combo. On Investments that are P/I, it could work too. I personally don't see too many of those around.

 

Their accelerate prime rate isn't fantastic - but it's not 1% higher than others. It's sub 5% from memory at that level of borrowings/lvr. It might go up though.

I'm not defending Homeloans BTW - I rarely use them now.

 

Its 5.19% for 85% LVR P&I. Thats about 1% higher than market. 1.1-1.3% higher than some of the cheaper providers (Macq at 4.09, Dragon at 4.24, etc).

Its 5.49% for I/O at 85% - LMI payable for this one. No waiver on I/O.

 

I'm getting 4.94 at 85% with them - hit up your BDM and see why you're not getting the same.

Cheers

Jamie

 

That the rate sheet posted on Homeloans website, it doesn't have the latest and greatest info on it. Hasn't incorporated the rate rise on Nov 16 on it, but it does look to have updated the Sept policy changes that Pepper did (servicing, rental, employment, no waiver on I/O debt, etc).

Best to look at Pepper rates direct as Homeloans price it equally. There's an email about it somewhere in my inbox

Homeloans don't price Pepper funded debt either - you do have some opportunity with the other funders they use (ABL).

Cheers,
Redom

 

It was 4.94 as of 25/11 according to BDM which would include November rate adjustment. I haven't seen any other changes since. Two software programs confirm this too.

It's easy to get confused with their rates though - there's lots of products on offer.

Cheers

Jamie

 

Interesting Jamie - i haven't spoken to the BDM in the last fortnight on Accelerate, but if they've confirmed it (their BDMS are great!) thats awesome. At 4.94 its still out of line but more sellable.

Peppers using Homeloans/MM to sell their Prime product then - no point going direct to them and getting charged 20+ bp more for the same product.