Mortgage House 3.42%

Does anyone have experience with Mortgage House?
Just saw they have 3.42% variable with 100% offset for loans up to 70% LVR which our new PPOR will be.

This is by far the lowest rate I have seen.

Any issues with this lender?
Also wondering why my broker hasn't mentioned them, is that because they don't pay broker commissions?

 

They have always been a cheap no frills lender with excellent lender but very conservative on the lending policy side of things.

The big question however is why do you want to limit yourself to a max 70% LVR equity release limit?

I tell my clients to become medicos or politicians just so they can access 90% no LMI lending.

No issues with using them if its set and forget but it rarely is.

 

Look at the fine print though:

Super-low 3.42% p.a. 
variable rate*
*Reverts to 3.92% after six months

 

That is a six-month special rate that reverts to 3.92% once the six months is up.

Not a great deal in my opinion.

 

That's cheeky!
On mobile there is no mention of the 6 month honeymoon, not in the main section or the fine print. Just looked on desktop and see that it does. Reckon one of the authorities would be interested in that...

 

Another option I think AMP is now at 3.72%????? not sure about their servicing criteria

 

Plenty of second tier lenders who have a better overall product which has a lower effective rate when you factor in the bait and switch nature of Mortgage House's product.

For non-investors we're hammering ING/ME Bank at the moment and their turnaround times are showing it (upwards of 15 days to sit in a queue).

 

Yep - 15 days with ING :-0 It's a killer turnaround - not ideal for purchases!!!!

Cheers

Jamie

 

Carrot to get you in. Consider your short, medium and longer term goals before proceeding as well as the policy's of the bank you are thinking to apply to.

Your Broker wont have them on his/her panel of lenders and likely they are not using the third party channel to distribute their product, hence a cheap initial rate.

Bank of Sydney are doing 3.54% (comparison 3.55%) sub 80% with no annual fee and 100% offset.

 

Actually, I had a look at ING Direct last night. They are offering 3.67% for OO for 80% LVR which is a fantastic rate especially it comes with 100% offset .....

 

I think I was reading an article interviewing the Mortgage House CEO last week. They were saying that APRA haven't really been looking at them. During the GFC they had some serious problems (a lot of smaller lenders did) but they came through it. As a result they decided to focus on the owner occupier market at low LVRs. Due to them having an ultra conservative approach and almost no investment focus, APRA hasn't been interested in them.

I did apply for a loan with them myself back in 2001. Back then they had products that looked very competitive, but when we actually got the full deal, it really wasn't a good deal in the long run. Their current offer obviously looks good up front. The back end is okay and competes well with the major lenders, but given their preferred customer profile there are a number of lenders with substantially better offers.

 

Good for a set and forget owner occupier loan. Anything else beyond that and things go from a bit clunky to outright difficult. Servicing is one of the most conservative out there. Like all lenders, they have a niche, but it's not for everyone.

 

This is what we are lined up for but keeping an eye out until we sign on the dotted line!

 

It's a good product. They will even set up IO against an owner occ without too much hassle. Not really ideal for someone looking to invest - but having said that, if the LVR is sub 80 and the loan is variable then refinancing (if required) wouldn't be too expensive.

Cheers

Jamie

 

The sub 80% O/O is a great place to be if your not an investor. You can happily shop your home loan every 1-2 years and with all the cashbacks flying around can probably pocket some money along with the savings of a lower rate.

This is ofcourse if you can be bothered switching lenders that frequently! Me personally I would want a couple of thousand in savings to make it worth the hassle.

 

and extra credit file hits

Cheers
Jamie

 

You think a credit enquiry every 1-2 years an issue?

 

As a basic guide, when it's 4 or more in a 12 months period, things can start to get tricky.

That said, if you had an ongoing history of refinancing every 6-12 months, lenders would see the pattern and at some point simply refuse to deal with you. It's not profitable for them to grant a loan for that sort of time frame. Ignoring the lenders currently offering refinance rebates, it's not cost effective to the borrower to constantly churn either.

 

Oh no doubt and I wasn't at all suggesting that.
Personally I think anyone would be silly though not to review their home loan every 2 years (appreciate I originally said 12-24 months) if you are sub 80 with no LMI and not an investor who relies on policy.

Vanilla set and forgets at 80 have all rights to pay the absolute least they should. And if a lender wants to give them a low rate and pay for the refi PLUS let them pocket a few hundred for their troubles then why on earth would you not.