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Discussion in 'Loans & Mortgage Brokers' started by Nikos_a, 18th Apr, 2024.

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  1. Nikos_a

    Nikos_a Member

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    Hello, has anyone had any recent dealings with Home Star Finance ? I wanted to refinance from liberty and I can save nearly a full 1% with homestar. My concern is when rates come down if it’s this year or next will they pass on? They assured me they follow the RBA in-terms of increasing and decreasing. There’s nothing else hidden that one should be aware of ?
     
    Nikos_a, 18th Apr, 2024
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    should you have the capacity to move to lender X, it doesnt really matter, because you arent locked to to that new lender if on a variable rate.

    There is no guarantee that any lender will pass on any rate cuts in full, id say the opposite is true, and any lender saying so is out of step with their own future financial needs.

    Different lenders pass different portions of any cuts, but overall commercial reality says this will all settle in a similar place.

    Why are u with Liberty in the first place pls ?

    ta
    rolf
     
    Rolf Latham, 19th Apr, 2024
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  3. HonestShiba

    HonestShiba Well-Known Member

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    Do you have serviceability to go to Homestar in the first place if you had to use Liberty?
     
    HonestShiba, 20th Apr, 2024
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  4. Nikos_a

    Nikos_a Member

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    Thanks Rolf, I’ve just heard some stories of non bank lenders especially playing funny buggers when rates come down. The rate being offered is pretty much inline with mainstream lenders for IO investment.
    Basically went with liberty to squeeze out some more after exhausting my borrowing with mainstream lenders
     
    Nikos_a, 20th Apr, 2024
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  5. Nikos_a

    Nikos_a Member

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    Yes I do.
     
    Nikos_a, 20th Apr, 2024
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    At 80 LVR you wont be a mortgage prisoner in any case.

    ta
    rolf
     
    Rolf Latham, 20th Apr, 2024
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  7. HonestShiba

    HonestShiba Well-Known Member

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    Why don't you take it to a Big 4 or another mainstream lender then?
     
    HonestShiba, 20th Apr, 2024
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  8. HonestShiba

    HonestShiba Well-Known Member

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    Why is that? Isn't it possible to be a mortgage prisoner at Liberty even at 80% LVR?
     
    HonestShiba, 20th Apr, 2024
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  9. Chris B

    Chris B Well-Known Member

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    It is, but if they can meet servicing with Home Star, there should be other options for them too.
     
    Chris B, 20th Apr, 2024
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  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Liberty are top 2 % of borrow cap for portfolio investors ( properly structured)

    Homestar are top quartile ie approx 75 % of lenders have worse borrow capacity

    To get out out Liberty, the chance of finding a lender that will do the loan at APRA like rates, with the same financials as at time of Liberty application is NIL, vs Homestar or the like there is a reasonable probability.

    ta
    rolf
     
    Rolf Latham, 20th Apr, 2024
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  11. Nikos_a

    Nikos_a Member

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    I’ve explored that option and can’t service.
     
    Nikos_a, 20th Apr, 2024
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  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    If u cant service with say Bankwest, CBA, Westpac et al with their reduced 1 % APRA buffer ( vs 3 % for normal new lending) Homestar is unlikely to fit unless someone is doing you a favour, unless they are offering you the Granite version of "no assessment", which they may be seeing Granite and Homestar share the same funder.

    ta
    rolf
     
    Rolf Latham, 20th Apr, 2024
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  13. Nikos_a

    Nikos_a Member

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    I may need to do a bit more home work and see what the actual situation is. cheers
     
    Nikos_a, 20th Apr, 2024
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  14. Redwing

    Redwing Well-Known Member

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    Owner Occupier rates & info

    upload_2024-4-21_9-52-56.png
     
    Redwing, 21st Apr, 2024
    #14
  15. HonestShiba

    HonestShiba Well-Known Member

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    Have you used them for refinance before Redwing? What were they like?
     
    HonestShiba, 22nd Apr, 2024
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  16. Whitecat

    Whitecat Well-Known Member

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    Are they doing a full serviceability check or is this their 'rapid refinance' pathway?
     
    Whitecat, 22nd Apr, 2024
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  17. Whitecat

    Whitecat Well-Known Member

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    they may not be meeting serviceability. My understanding is Homestar have a 'rapid refinance' pathway that is not checking serviceability if you have been with your lender for 12mths and clean history (a bit like granite).

    Edit I see @Rolf Latham comment about Granite and Homestar using same funder so yes that makes sense. Thanks for the info Rolf.
     
    Whitecat, 22nd Apr, 2024
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  18. Whitecat

    Whitecat Well-Known Member

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    Better rates than Granite (even if same funder?). Homestar is a good option.
     
    Whitecat, 22nd Apr, 2024
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  19. HonestShiba

    HonestShiba Well-Known Member

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    Game changer if true, Homestar has MUCH lower rates than Granite
     
    HonestShiba, 22nd Apr, 2024
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  20. Whitecat

    Whitecat Well-Known Member

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    Whitecat, 22nd Apr, 2024
    #20
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