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Huffle - Groupon for Mortgages, Anyone used them?

Discussion in 'Property Finance' started by brookey19, 10th Dec, 2015.

  1. brookey19

    brookey19 Member

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    Hi

    Long time listener first time caller (I have always wanted to use that!!!)

    Just wanted to know if anyone has used Huffle? www.Huffle.com.au

    My question is does anyone have any reviews on them? Has anyone used them before?

    I would like to try them out for my refinance on my Home Loan but I want to hear some reviews on them first, or at least get someones thoughts on it.

    I signed up yesterday with them and the guy was very helpful, I didn't have to give many details of mine it was basic information.

    From what he explained they operate differently to mortgage brokers, they collate groups of borrowers and negotiate better rates by stripping back fees like brokerage, marketing and acquisition costs which passes the savings back to the borrowers.

    I was told it is free and there is no obligations.

    Because there are no obligations I wanted to see if anyone has used them before and their thoughts before I have to go ahead with it.

    Any help would be greatly appreciated!
     
  2. tobe

    tobe Well-Known Member

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    long time lurker first time poster?

    I doubt anyone will have any experience of them here, try whirlpool or similar.
    I'm not sure exactly what they are 'stripping back', but good luck to them. I doubt they can get rates better than some of the online lenders, who have a similar business model. (get people to apply online only, have a one size fits all product/policies etc).
     
  3. brookey19

    brookey19 Member

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    Yes I will admit I am a lurker hahahaha, there are some interesting posts on this forum, it makes for a great read on the train on the way home from work.

    The guy I spoke to (I think his name was David) said they have a number of lenders working with them ANZ, NAB and Macquarie so they can't be that bad.

    I did look at the online lenders like loans.com.au but from the reviews I read they service is really bad, I prefer to speak to someone and deal with a real person.

    I don't know what they are stripping back either but it did grab my attention.
     
  4. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    A lot of fluff without substance - the 'stripping back' mention sets off my BS meter.

    Wouldn't be surprised if its just a case of sending you to whoever has the latest rate special with some marginal discounting - something that any broker can do, but with a greater tailored service.

    ANZ, NAB, Macquarie etc won't play to the discount levels that the more competitive end of the market will offer.
     
  5. House

    House Well-Known Member Premium Member

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    He's asked the same Q on Whirlpool but interestingly the page has been removed after just a day. One of the responses was

     
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  6. tobe

    tobe Well-Known Member

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    I think some of the big 4 pulled out of some similar gigs recently as they got bad publicity for having diferent channels doing different pricing. I wouldn't hold your breath getting a big 4 lender to give you a discount more than you could get normally through the branch or broker channels. If they did, they would be undercutting themselves essentially and it wouldn't be great business practice.
     
  7. Jaybot

    Jaybot New Member

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    Pretty sure brookey19 is huffle. Now banned from whirlpool
     
  8. York

    York Finance Broker Business Member

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    Bulk buying a loan? Like Costco? o_O
     
  9. brookey19

    brookey19 Member

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    Hey thanks for the Info,

    Yes I admit I have been asking the same questions because I am trying to get an answer,

    Corey you look like your a financial person, are you located in NSW or can you help me?

    I am just after a good deal and don't want to get burnt.
     
  10. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Looking at the website just raises SO many questions. What if one person in your Huffle has credit impairment? What if one has only been employed 3 months?

    Trying to find one lender to fit a large group of people means that it will be the one lender that fits them all, not the best lender for any individual.

    It seems like a very complex way to get a one size fits all loan.
     
  11. brookey19

    brookey19 Member

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    Thanks for your help guys, your questions are good points, I am not a financial person so I don't know to ask these questions.

    What I am after is someone to help me, I am self employed I run a number of successful hair dressing salons and don't have time to sit down and research every loan in the market (even though I wouldn't understand most of it).

    I originally went through a broker to get my current loan and I was told by a friend a few months later that the broker must have offered me a product that benefitted him not me, I am paying a higher rate than I should be and I want to refinance.

    I am scared to go through a broker because I don't want to get ripped off again and these online guys like compare the meerkat don't offer any help.

    So I am looking for some help
     
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    They're simply a mortgage broker using the 'group buying' as a marking tool.

    Interesting that they talk a lot about using technology to streamline the process. In many regards, this means a less personal approach. Grouping people together also means less personalised advice.

    Brokers rarely get an advantage by putting you with a more expensive product. Lenders generally pay about the same in commissions and it doesn't vary from one product to the next.

    More likely you got your loan at one point in time and lenders are now offering something different. Deals today are vastly different from what was being offered 7 months ago, which was different from what was being offered 12 months, 18 months, 2 years ago.

    Your friend might have also borrowed at 80% and you at 90%. The loan amounts are probably different. This is going to result in different rates being applied even with the same lender. Again the broker will be paid exactly the same.

    Odds are chasing rates from one lender to another will cost you more money. A better approach would be to start by asking your existing broker. There's a very good chance that they'll be able to renegotiate your existing loan to a better deal without putting you through the costs of moving.
     
    Last edited: 10th Dec, 2015
  13. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Lender and rate please?

    Loan amount and LVR?

    Chances are - armed with some info you'll be able to go back to your current lender and negotiate a lower rate without refinancing.

    Cheers

    Jamie
     
  14. Watson1

    Watson1 Well-Known Member

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    Higher rate could be due to different reasons.

    1. His/Her loan is bigger. Banks discount more based on loan size.
    2. Higher equity position
    3. Self employed borrowers tend to have a smaller pool of lenders depending on your circumstances.
    4. How long ago you settled your loan compared to them. Recently banks are discounting much more heavily. E.g, I had a client who was on 4.74% and I managed to renegotiate a rate of 4.40% for an investment loan with their bank. At the time I got a good discount for them, but the pricing has since shifted within 1.5 years.

    Everyone situation is different, hence different rates. I would assume a broker would want to operate in a way which is sustainable and want repeat business rather than short term gain. In addition, commission is pretty standard across lenders and only varies ~0.10%.
     
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  15. brookey19

    brookey19 Member

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    my current rate is 5.47% with ANZ, loan amount remaining is $487,000

    I have had the loan for just over a year now, I want to change from ANZ because their service is poor.

    My friend got his loan a month after mine and for $380,000 so size is not the issue and he was paying .56% less than me.

    house value is over $550,000 now
     
  16. brookey19

    brookey19 Member

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    The broker I used told me I had to pay a higher rate because I'm self employed, I accepted it because I didn't know anything else and it is my first home.
     
  17. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    That is a junk rate, but ANZ aren't there for their rates - it's usually for something niche they offer. There may be a better product for you out there, there may not. By the time you factor in the huge LMI you would have paid, and the fact you'll need to pay it again when you refinance you will need to make some pretty amazing savings to make it worthwhile.

    The reason you're with ANZ has probably got something to do with using just one years worth of financials.
     
    Last edited: 10th Dec, 2015
  18. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    How many years tax returns were you able to give as evidence of your income? It's possible you've got a lo doc loan because you didn't meet the criteria for a full doc loan. There's a huge rate difference between these two types of loans.
     
  19. Watson1

    Watson1 Well-Known Member

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    ANZ do not charge extra for self employed even for lo doc However, if you needed a lender who goes off 1 year financials, ANZ are pretty much your only option. He could be trying to convey, as you are self employed, you have to go with ANZ who are one of the pricier mobs around.

    Plus ANZ don't discriminate when pricing mortgage insured loans.

    Discount sounds weird as minimum package discount is around 0.60% so the numbers don't really stack up...

    Finally, I do a lot of ANZ loans, and they pay the lowest commission of all banks so it doesn't seem he is giving you a loan which pays the highest commission.
     
  20. brookey19

    brookey19 Member

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    I had 5 years financials, not 1 year, because I am technically self employed even though I draw an income from my company, I assume he submitted it as a self employed loan.

    He said it was the best rate I was going to get which is why he referred ANZ and I took his word for it, he was an independent broker

    Do you have any recommendations on where I can go to get this sorted and not get ripped off?
    Should I go for a reputable company like Aussie or Rams?