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Beyond Bank Special Investment LVR<70%

Discussion in 'Property Finance' started by Perthguy, 6th May, 2016.

  1. Perthguy

    Perthguy Well-Known Member

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    My broker is struggling to find a good deal for my latest aquisition. Looking around, I found this loan last night.

    The Beyond Bank Special Investment Home Loan offers low variable interest of 4.14%p.a. and features a 100% offset account and free redraws. This gives you increased flexibility to manage your mortgage as well as the opportunity to repay your investment loan quicker.

    With the ability to borrow up to 70% of the property value, this loan has no establishment or ongoing fees, and includes an interest-only option. The Beyond Bank Special Investment Home Loan is designed for investors.

    This ticks off the major features I am looking for. 100% offset and no ongoing fees are big ones for me.

    This is for a very long term hold, so basically a set and forget investor loan.

    Has anyone dealt with Beyond Bank? Anything I should be aware of?

    Beyond Bank Special Investment Home Loan Review | finder.com.au

    I think an issue with the broker trying to find a good deal is that I am only chasing $339,000. It's such a small loan! I haven't taken out a loan that small in ages. An investor loan that small is simply not attractive for the majors. Hence the higher rates for those loans.
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    If you're just looking for a cheap loan for an owner occupied property, Beyond Bank does have a fairly good offer.

    There's a few reasons why you probably wouldn't use them as an investor, but for a 'set and forget' owner occupied loan with no other investment debt or expectations of investing, they're fine.
     
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  3. Perthguy

    Perthguy Well-Known Member

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    Thanks Peter. This is for investment and I was looking at it because it is being marketed as an investment loan.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    @Perthguy then you need to decide if the property will be 'set and forget' or not.

    Beyond Bank is a fairly lousing servicing policy for several reasons. Their cash out policy isn't great either. You might find yourself refinancing in the future if you want to use the property as part of a larger strategy. Of course you can probably refinance in the future given you're coming from a 70% LVR.

    I don't think BB has attracted too much APRA attention, so at this point I don't think they've had to raise too much capital, hence the low rates. This could change in the future.
     
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  5. Perthguy

    Perthguy Well-Known Member

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    Thanks Peter, I have knocked them out as an option. I appreciate your time and advice.