URGENT - Recommendation on the best product from this list?

Discussion in 'Loans & Mortgage Brokers' started by KTJH, 3rd May, 2021.

Join Australia's most dynamic and respected property investment community
  1. KTJH

    KTJH Well-Known Member

    Joined:
    14th Dec, 2020
    Posts:
    49
    Location:
    Sydney
    Hi everyone, just needing some urgent advice from you as I need to make a decision on this as soon as possible.
    I've just started a new job recently, which has given me a lovely payrise. However, because I'm still in probation for another 3 more months, it has now limited my financing options.
    I have already signed the contract for the investment property I'm purchasing and my financing has already been delayed by over a month.
    My broker has come back with the following options to accommodate my circumstances:

    Newcastle Permanent
    $352,000 (80% Loan amount)
    $132,350 (Deposit needed)
    Fixed – 2.49% (P&I & IO)
    Variable – 2.89% (P&I & IO)
    4-5 Business Days

    NAB
    $396,000 (90% Loan amount)
    $88,350 (Deposit needed)
    Fixed – 2.29% (P&I) 2.49% (IO)
    Variable – 3.81% (P&I) 4.07% (IO)
    9 Business Days

    St George
    $387,000 (90% Loan amount)
    $97,350 (Deposit needed)
    Fixed – 2.29% (P&I) 2.49% (IO)
    Variable – 3.04% (P&I) 3.24% (IO)
    5 Business Days

    Bankwest
    $396,000 (90% Loan amount)
    $88,350 (Deposit needed)
    Fixed – 2.49% (P&I) 2.99% (IO)
    Variable – 3.46% (P&I) 3.63% (IO)
    2 Business Days

    Suncorp
    $408,510 (90% Loan amount)
    $85,000 (Deposit needed)
    Fixed – 2.48% (P&I) 2.69% (IO)
    Variable – 2.36% (P&I) 2.68% (IO)
    8 Business Days

    For some reason, the total amount of Suncorp works out to be about $9k more than the other 4 banks.

    Could anyone advise on which of the 5 is the best to go with? Thank you in advance!
     
  2. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    12,394
    Location:
    Sydney
    Which one is your broker recommending?
     
  3. KTJH

    KTJH Well-Known Member

    Joined:
    14th Dec, 2020
    Posts:
    49
    Location:
    Sydney
    Newcastle Permanent was the initial recommendation because it offered a lower interest rate for a 90% loan amount, but due to the "probation" component, they can now only offer 80% and a higher interest rate so it's no longer the best option.

    I am currently leaning towards St George.
    What are your thoughts?
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    None. We lack all facts the broker has.
     
    Lindsay_W likes this.
  5. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,260
    Location:
    Australia
    Missing info such as, whats your next step after this?

    finance is a strategy.
     
  6. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

    Joined:
    23rd Aug, 2015
    Posts:
    1,546
    Location:
    Bella Vista
    You should sit down with your broker and talk about why the product was reccomended.

    It's very hard for us to comment about the products if we don't know your who situation.
     
  7. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Why has finance been delayed so far?
    Do you need 90% LVR or 80% LVR?
    Without knowing your full financial situation it makes it hard to recommend one over another, this is something you should be discussing with your Broker directly IMO, they have all the facts.
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    Personally, I would never land a client with that level of confusion.

    Its a broker job to bring it down to 1 max 3, not only for the client but so as to make the sale stickier. Wishy washy lender and product selection makes for a lower confidence outcome in the mind of the borrower...............

    Option X or Y based on the data that has been provided and guided by the current and future goals of the the borrower, mixed with their risk profile and decision tree based on that outcome rarely produces more than 1 or 2 options.

    As has been said without knowing the balance of the hard and soft data, you arent going to get any love here :)

    ta
    rolf
     
  9. KTJH

    KTJH Well-Known Member

    Joined:
    14th Dec, 2020
    Posts:
    49
    Location:
    Sydney
    Thanks everyone for all the responses so far. Apologies for the lack of data.

    I've attached a chart comparing St George and Suncorp.
    As mentioned to my broker, I am comfortable going in at about 85-90% LVR, which is about $97k deposit.
    I will be going in with Interest Only for the first 6-10 months while the property is being built, and then moving to P&I.
    I didn't include this information before, but out of the 4 banks, Suncorp came back with the highest valuation for the property.
    My current goal is to not put in too much of a deposit for my first property so that I can have spare cash for a second later on.

    Let me know if there's anymore information I can share to help with deciding! Thanks again.
     

    Attached Files: