Current thoughts on State Custodians

I am looking around to refinance an LOC that I currently have and State Custodians are by far offering the best rate.

I have read many reviews on the interweb about them and a huge percentage of people that have taken out loans with them have been hit with out of cycle rate hikes within months of signing up. I don't want to waste my time jumping through hoops to get a loan approved only to find that the B&S stories are all true.

Does anyone that has or has had dealings with them have any feedback? I would really like to establish if the rates they offer are too good to be true, as it certainly seems that way at the moment.

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Like anything on the internet, most people only post bad experiences/reviews. Hardly anyone volunteers good information.
I had no issues with them as my first loan. At the time, they too were the lowest rate on the market.

As long as you're happy with them not being an ADI, and can tolerate their stone-age online interface, those were my only issues.

 

If they are not a ADI, does that mean they dont have an offset account?

 

Don't know about what a non-ADI can and can't do, but SC do offer a 100% offset account
https://www.statecustodians.com.au/...ry/loan_feature_details_100_offset.ashx?la=en

and
https://www.statecustodians.com.au/~/media/files/loan-summary/loan_feature_factsheet.ashx?la=en

 

State Custodians offset isn't a true offset account, more like redraw-offset

 

State Custodians LOC is interest only for 5 years then 25 years P&I
The older style 30 year Interest Only LOC's are getting rare, what lender is your current LOC with?

 

whats the tax view on this?

 

Currently with Bluegum Home Loans. The IO period was 10 years with a couple of years still to run.

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