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PPOR refinance - any experiences with firstmac or homeloans.com.au

Discussion in 'Property Finance' started by dabbler, 17th Aug, 2015.

  1. dabbler

    dabbler Well-Known Member

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    Hi All,

    Been thinking about drawing equity, seems main players and current lender will not go for a 80% with us now, can people maybe tell me by PM maybe, of your experience with Firstmac or Homeloans.com.au or any other smaller lenders.

    I cannot see too much that is positive online, and do not want to have any headaches when it comes to our home (or any loan actually), not asking if they are likely to give the money, I have had it indicated that all would be ok, more interested in if there will be some dramas, or painting myself into a corner, or any other negatives.

    Also if you know these lenders, is one more preferable than the other.
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Why won't they go to 80% with you? Is it a servicing issue?

    Homeloans are a mortgage manager, so if you go through them you could actually be with Macquarie, Pepper, or their own funded product. Firstmac is just Firstmac. Under 80 you shouldn't have too much trouble with them, however at the moment they are pretty much the most generous lender without going to Pepper so in terms of painting yourself into a corner you do need to be a bit careful.
     
  3. dabbler

    dabbler Well-Known Member

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    Yes, all servicing.
     
  4. dabbler

    dabbler Well-Known Member

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    I guess another question, that may be better, is, from those helping with finance, would you use these lenders on your home ?
     
  5. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Rather than trying to find lenders that you've perceived to have generous servicing calculators, why not simply discuss your options with a broker? Going to a few lenders almost at random will only add unnecessary credit hits to your report, which could result in an application being knocked back even if your do otherwise qualify.
     
    Jess Peletier likes this.
  6. Azazel

    Azazel Well-Known Member

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    I tried with loans.com.au, I assume that's different to homeloans.com.au?
    For what it's worth, it took for ever and moved on to someone else.
     
  7. dabbler

    dabbler Well-Known Member

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    I may have mixed up the names. Thanks for your experience though :)
     
  8. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Homeloans Ltd product that you are referring to is most likely the classic product which doesn't have an offset whereas the Firstmac product does have an offset so its most likely that the Firstmac product will come out better plus they have IO for 10 years which IMO is brilliant.

    There are some major policy differences between the 2 lenders - for example Homeloans Ltd do not accept proposed rental income on a property. So if you have a vacant property then you wont be able to use the income with Homeloans (Classic product which has the decent servicing).
     
  9. Redom

    Redom Mortgage Broker Business Member

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    Some policy differences between Homeloans Classic and FirstMac are:
    • Homeloans Classic is fully insured and needs to be signed off by the mortgage insurer. If you've got an active credit file be careful.
    • Homeloans are pretty easy for cash outs - minimal verification required. BUT they have a $100k limit, so that may dictate lender choice.
    • Also slight nuances in employment policy between the two.
    • As of now, Homeloans haven't inputted a rate difference for investment loans.
    @Shahin_Afarin - Just going through my approval letters, Homeloans Classic can definitely also do 10 year I/O. Agree that its pretty neat! :)

    Cheers,
    Redom
     
  10. dabbler

    dabbler Well-Known Member

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    They seem to only advertise 5 yr
     
  11. dabbler

    dabbler Well-Known Member

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    Is this including 80% and under ? I guess your saying yes, that everything goes past the insurer...
     
  12. Redom

    Redom Mortgage Broker Business Member

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    Yes, all LVRs. You don't pay the insurance premium at sub 80 though.

    Biggest concern is active credit files with them.

    Usually can get through OK for most things as the credit scoring model the insurer uses gets a little easier at lower LVRs.

    Active credit files have caused an issue or two - particularly for some who went bank shopping during APRA changes and now turning to actual viable options.

    Cheers,
    Redom
     
  13. Redom

    Redom Mortgage Broker Business Member

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    They do 10 years.

    A little dearer for investment loans compared to Homeloans - but this is probably temporary and likely to represent a push before rates rise.

    Fees also a little higher - around $700+ for FirstMac (paid val) v Homeloans Classic of $363 (1 free val).

    FirstMac you can do upfront valuations (paid, but you have to pay for it anyway). Homeloans you can, but the vals no longer free (so total cost rises to above $583).

    FirstMac have higher security limits i believe too (Homeloans classic capped at 1mill).

    Cheers,
    Redom
     
  14. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Yep -they're different.
     
  15. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    If servicing permits, your credit file isn't too busy and your present a good application (well apart from strong servicing!) then the Classic is the way to go. Lower rate, fees, etc.

    If servicing is a little tighter - and you've got a cluster of recent CRAA hits, etc - then the non scored Accelarate Prime is the way to go.

    So far - they're not too bad to deal with. A little slow at times (because they're getting hammered with new business).

    Cheers

    Jamie
     
  16. Azazel

    Azazel Well-Known Member

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    Ah, no worries.
    Best to be avoided anyway if you want it done in a reasonable timeframe in my opinion.
     
  17. Elives

    Elives Well-Known Member

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    100k cash out limit as in per loan? or your entire portfolio with homeloans classic?
     
  18. Redom

    Redom Mortgage Broker Business Member

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    Per loan. E.g. can do a 300k cash out if you have 3 securities.

    Cheers,
    Redom
     
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  19. dabbler

    dabbler Well-Known Member

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    I know some I have msgd before, just to be straight up, I have long term broker & not looking to stiff them. I really do appreciate offers for help, and the thread may help people who do not have a broker already.
     
  20. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Firstmac have terrible cash out policy and a soft rental reliance policy. Although they don't credit score - they can and do request a higher NSR/Servicing is they deem fit. This is their way of credit scoring.

    Therefore its best to use Homeloans for equity releases and Firstmac for purchases.
     
    Redom likes this.