Can anyone tell me about Liberty Finance, especially their interest rates, customer service and fees? My broker thinks he can get me 4.39% variable, loan size 700k. I'm thinking of refinancing out of CBA with some of my loans because they have increased my lo doc loans to 5.69% and will not consider a fixed rate which used to be available. Not happy as they told only me 4 weeks ago that they would give me 4.19% fixed for 2 years. I was going to threaten to refinance but my broker said it wouldn't make any difference because they want to get rid of as many lo doc loans as they can.
Are you still needing a lo doc loan? That rate your broker has quoted is not their lo-doc rate, so you may be able to get a better product, similar rate with a different lender if servicing permits. Fees are $295/yr, per loan for their full doc AAA products.
Keep in mind that the CBA offered you the full doc rate 3 year fixed rate, with a price match to St George. That's not the same thing as what they'll do for a lo doc loan. You can get that rate from the CBA, but you'll need to reapply under their full doc policy, which means they'll review your tax returns amoungst other documents. What you've been quoted may not be specifically matched to your circumstances and it's a quote, not an offer.
Im sure your broker has outlined all the strengths of liberty including their rate which is actually 4.49%. They do have 2 big weaknesses - they don't offer fixed loans and they don't do construction loans. They also don't have their own DUA over for 80% LVR loans but this doesn't apply to you since your loans are at 80%. They do however have the choice of Genworth or QBE as mortgage insurers and thats often really handy!
If you can switch over to full doc - I'd be looking at your options before Liberty. They certainly have a great niche (borrowing capacity when no one else will), but if you have the capability I'd be looking for a more mainstream alternative with better general policies.
I didn't qualify for full doc this time although I did qualify about 2 years for another loan. Their servicing requirements have changed a lot recently. I'm regarded as a highly valued customer as I'm applying as a payg client.
I think you misunderstood my post. They didn't offer me full doc 3 year fixed because I am lo doc on 2 of my loans with them. They originally offered me 2 year fixed (4.19%) on these lo doc loans but then changed their minds because they found out I wasn't full doc. In the past I have been able to get fixed rate on lo doc but they said that their policy has changed even though they didn't inform me. I'm going to contact the complaint section of the CBA to see what can be done but my broker doesn't think that I'm going to get anywhere. After that the ombudsman before thinking of refinancing to possibly to Liberty who have got some great deals at the moment. .
Why? I know that they have been lender of last resort in the past but I have noticed that their customer service, rates and conditions are a lot better now.
typically, if Liberty AAA has been recommended its because your servicing is tight, and there aint many other options....... Liberty is one of the few lenders that are still in "pre Aprahensive" mode, ie they will assess other debt at actual. ta rolf
They're not subject to APRAs oversight so they haven't changed their policies to meet APRAs recommendations. Their servicing is still based on actual repayments, not assumed higher repayments. They're getting a lot of business from people who simply don't service anywhere else.
Thanks for speaking plain English? Don't you think that their 4.39% is a good deal? Do you know what their application and ongoing fees are like? I realise they don't do fixed or construction loans.
My version assume your current payments on an IO basis are 5000 a mth Liberty will assess those at 5000 a month. 98 % of other lenders assess at a loading,with worst cases of say 10 000 a mth............ Usually when we are at Liberty we are at the end of the Serviceability road, and for clients that are on high rate Macq no doc product for eg,or for those looking to buy a decent investment, the rates fees and charges are very reasonable. Logically 4 and a half v mid 5s to early 9s in some cases is usually a worthwhile thing - subject the inidividual circumstances ta rolf
I was looking for something else and landed here, thought it would be good to ask what your thinking is now ?
Still generally used when servicing is very tight. Their rates for sub 80% and a single IP loan aren't too bad. If you have three or more properties and want IO repayments - it will cost you a heap. They have an "investor loading" of 75 bps for those with three or more properties. The app fee isn't cheap now either. Cheers Jamie
Yeah, wonder what the OP thinks now. They seemed to be a company looking to establish a reputation for fairly competitive product and gain more mainstream business, but the last 12 months would seem to have many changes where that was thrown away.
Yep - they would be aware of their current position in the market (investor friendly) so are pricing their product accordingly.
Bump. Previous message has been over 3 years ago. Updates on the service of using Liberty for mortgages? Going through a broker, with Liberty offering a better income wise choice of lender who could accept a new (invest) / refinance (can't claim) debt with.
