Should I refinance to Tic Toc home loans or HomeStar Finance?

Sure, it can. But you’re not going to get specific structuring advice that will help you grow a property portfolio from a lender at Tic Toc. Need equity? Need to debt recycle? Need advice on anything other than what’s the best rate?
Not gonna get it.

I used to think it was all about the lowest rate too - it’s really not. For investors, it’s policy first, rate second.

 

1) Serviceability is tight
2) They scrutinize 3 months bank statements for living expenses which can be an issue for some who have discretionary spending / income.
3) Don't do pre approvals.
4) Limited appetite for cash out.

Lot's of reasons wouldn't suit lot of peeps

 

When you say serviceability is tight, what do u mean? As in they’re strict or u can’t be missing payments or something like that?

 

I have only ever been with online lenders 5 years with loans.com 3 with reduce loans. My strategy was set and forget so had nothing but to pay the low rate and hence they suit me.
Some thing i noticed though:
1. I did equity release 3 times in that time (with loans.com) the process was tedious but doable.
2. Last year loans.com tried to cancel my visa debit card for the offset account as it went to renewel without providing any real reason why. I called up the manager and created some noise and got my renewed card. But i did not like that experience.
3. With reduce loans, the make it very expensive to get your equity released and the same broker company that helped you get on their file, will try to get you to switch to other lenders by making it half the cost to refinance. I havent completed this equity release process yet to give the full picture.
4. In my time with these loan lenders i have always been at really good interest rates, better than anyone i would speak to. Currently at 2.98 for loans.com and 2.74 with reduce. I consider point 1, 2 and 3 as the cost of me saving money.

I am looking to refinance my PPOR next with Homestar. I liked the reviews i read online and have no plans for any future equity release on this particular property. Yes circumstances might change and when they do, i will change lender. But for now I dont want to not take the advantage i can afford today with a low rate pondering what-if scenarios that are not really even in my plans at the moment.

 

This is for owner occupier purposes? If so, 2.74% is fairly good, but you can do better under the right circumstances. 2.98% isn't very good at all.

If you're quoting investment rates, they're fairly sharp, although quite a few lenders do have cheaper fixed rates for investors ATM.

 

Both originally PPOR rates to be honest. I shifted my PPOR around and just didnt go back to the lender to say its IP now.. Also with loans.com i also have an IP in a trust structure thats identified as an IP but at 2.98. That was a package offer where if i moved with them for the IP they will make the rate the same as PPOR rate, hence a good deal there.

Oh and both are variable.

Worth noting that this is me with these lenders for 5 years and 3 years respectively. I started with my interest rate in 4s with loans.com and 3.something with reduce originally.

 

Agree 100% Rolf.. hence in the spirit of full disclosure, shared my experiences with equity release and card issue and the efforts of the reduce loan mortgage Ezy lenders to move me to a new loan when all i am looking for is an equity release. Very annoying.

But then i havent done many things by the book, including keeping all my properties, including IPs on P&I from the very start. It just so happened that my PPOR over the last two years also got rented out and hence became an IP within a couple of years so it doesnt make any tax difference now (I have been lodging with a mate who is like family)

My efforts to move to lower rates are aligned with my goal right now to reduce debt. Its potentially too soon (i am 34) and i should be more risk taking where property is concerned and if i had gone interest only, maybe i would have more now, but i would be super stressed as culturally we buy our homes outright and debt is not considered a good thing. I do want to invest more, but no longer with leverage so i want to focus on shares now which i want to buy in cash which i manage to save easily. (Before i buy the shares, i do pay off my designated PPOR loan (just in case) with that cash and then redraw, not sure if it makes any real difference though as i am also renting it out now, but it feels right ).

To be honest i am stumbling forward and i certainly dont think i know what the right thing to do is for all possible circumstances. I just know that as of right now, this is my strategy. When/if it changes, i will change lender and my equity will afford me to do so (i am fairly confident) At that time, the breakfree costs from these lenders will be the cost i will have paid for enjoying years of (much) lower rates.