Macquarie Bank vs BOQ

Hi all

I'm looking at refinancing to Macquaire or BOQ

Both banks have come back with very similar offers

Obviously if one had a better offer I would go with them - but not so in this case

i'm not sure which one to go with

Do people here find one better to deal with in the other long term ? I have not had any experience with either bank.

BOQ have branches in our area but Macquaire Bank have no branches - I'm not sure if this is a valid reason to pick a bank - I dont go to the bank branch often these days

Many thanks in advance

 

Avoid macq I would say.

 

Both are very different lenders and have very small but different niches. Why have you narrowed it down to these 2 lenders? Is it a rate thing?

Both have got very ordinary servicing/borrowing capacity calculators and cash out policies so I think you have better options out there unless you are choosing them based on their medico or professional package.

 

Ha - I'd go Macq out of those two. I love them right now, just for the ease of getting things done. They're so fast! BoQ still take forever and are super nit-picky.

 

I'd go with Macquarie. Their service is excellent. Feedback from a client is their phone banking app is about as good as the CBAs (which is considered the market leader in this space).

The real reason however is their funding model. They've made some fairly serious changes to their funding model over the last decade and I'd consider them a better risk than BOQ.

 

I have been with BOQ until a few years ago - you have a "branch" relationship which is good these days for those who want a personal touch.

Macquarie, does not have a branch, but we do many loans with them and have hundreds of cash management accounts with them, their service is generally good. If you have a white-label product that may differ.

The difference is clear and then look at rate.

BOQ maybe go through a branch and for Macquarie use a broker.

From there it comes down to rate and product features. If you don't care, go ubank

Cheers Ivan

 

Thank you for all the advice - I really appreciate it

 

Care to elaborate why you say avoid them?

I bank with them and find them quite good. Great communication, great app on phone.

 

I must say I haven't used them for a few years. but they previously quit lending and left a lot of customers in the lerch. Also all their loans are mortgage insured.

 

That's no longer accurate, Macquarie have changed their funding models significantly since their problems during the GFC. They're now almost totally balance sheet funded. Only loans above 80% are mortgage insured (like any other lender).

They did get hit quite hard by the initial APRA investment book growth caps, but since then Macquarie have managed APRA expectations significantly better than most lenders and those caps have been recently removed (subject to certain conditions which Macquarie has also met, hence their moderately conservative servicing model).

 

Thanks for all the comments

I apologise if this appears to be a stupid question

But are there any inherent risks with switching to a smaller lender from the big 4

After hearing from the royal commission regarding Bankwest recalling loans even though monthly payments were made on time - has me concerned - though I think the case in question was a business loan

Thanks

 

Yes, there are for mortgage managers.
The problem is they are rebadging loans from other lenders such as Adelaide Bank. So the lender is X but the mortgagee is Y and that can cause problems with contacting the right party.

I recall years ago I did some conveyancing for a seller of a property and the mortgagee was Adelaide bank, but they would not deal with us for the discharge of mortgage as that had to be processed by the mortgage manager who had their names on the statements. The problem was that they never answered their emails or phones or replied to faxes. It was if they had closed down. Nearly didn't settle on time but eventually found someone to process it all.

Other issues are rate creep - rates are low to get you in the door and then they often rise once you are in there.

And all of their loans are mortgage insured, but they pay the premium for under 80% LVR, This means you have to pass the mortgage insurers criteria as well.In most cases this is no big deal but can be

But this is for the non-bank lenders, or non-deposit taking lenders.

 

Those loans were called in when CBA bought Bankwest - what does that tell you about the inherent 'safety' of being with a Big4 vs smaller lender?

 

They're also commercial loans, not residential. Calling loans on a whim doesn't really happen in the residential market, although Bankwest is quite notorious since CBAs takeover for having other bait-and-switch tactics.

 

Avoid both I would say

 

Macquarie have a reputation for clipping anything and everything they touch. I met someone who had a job offer.

Compulsory income protection insurance at employee expense using their insurer (no financial advice or opt out) and they hand you a rollover form prefilled for their default fund to take your super from your existing fund (they do a lost super search without being asked!) - to AMP. Again no financial advice or mention of issues if you dont want to rollover or loss of benefits.
And they hadnt started day one yet.

 

Mac Bank is an investment bank most of their money is made from deal making, investment/structure products and M&A, they start going into everyday banking but it still a small part of their earning.

They would have collapsed during the GFC but a secret deal with treasury save it by providing them with liquidity until the debt market open up again.

 

Yeah I can tell you horror stories from Commercials loans. One was a big winery and very profitable. A German bank wanted out of that sector so told them they had 14 days to refinance. Concocted a issue with failure to complete a mortgage requirement by claiming to have sent a notice. Our office was reg office and nothing arrived and we had great records. Later revealed in court they backdated documents prepared same day as the default letter was raised.

The bank without warning placed ads for sale in major newspapers and then within days offered the business to a competitor for a fire-sale price sufficient to payout the loan. Directors had NO say. Countless legals for urgent hearings and injunctions etc...
1. Buyer walked away since nobody told them the land and vines were owned by the SMSFs. SMSFs refused to lease to anyone else. And meant banks efforts to lockout the winery was not allowed. They couldnt buy anyting without the Directors being agreeable. A great example of asset protection.
2. Bank got sued - successfully.

Have seen similar in other sectors. Hotels is one. One day the bank decides we want out and you are in trouble. Another was in hardware and the lender went from 20years P&I to a non negotiable 5 years P&I term.

My tip - Next sector is apartment developments in some cities and areas. Watch the banks insist on sales covenants (sell x apartments after completion per month) and debt reductions. If the sales dont happen the bank sells. A firesale so Bank 1 is ahead of Bank 2