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Revolving Credit Mortgages: Who's the best?

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  • Revolving Credit Mortgages: Who's the best?

    Revolving Credit Mortgages: Who's the best?

    The title says it all.

    What's your current experience?
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  • #2
    Not National.

    Only because of the $12.50 monthly maintenance charge per account.

    I'd go Kiwibank simply because of low rates (comparatively) and no monthly charges.

    Cheers
    David
    New to property investing? See: Best PropertyTalk Threads for New and Old Investors And/Or:Propertytalk Wiki

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    • #3
      Nzhl

      New Zealand Home Loans ; http://www.nzhomeloans.co.nz/

      $250 application fee, and that's it!

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      • #4
        Originally posted by Monid View Post
        I'd go Kiwibank simply because of low rates (comparatively) and no monthly charges.

        Cheers
        David

        http://nzhomeloans.co.nz/media/page/...nkNEWS0207.jpg

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        • #5
          Application fee?
          Surely you jest sir... Then again I guess we have paid more than that in our years of having a National R/C.

          Actually I have to say barring fees both application and ongoing I was under the impression that revolving credit accounts are much of a muchness. Are you looking for anything in particular Perry?

          Cheers
          David
          New to property investing? See: Best PropertyTalk Threads for New and Old Investors And/Or:Propertytalk Wiki

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          • #6
            Originally posted by Perry View Post
            Revolving Credit Mortgages: Who's the best?

            The title says it all.

            What's your current experience?

            The best, in the current climate, is any lender that gives you the money.

            My current experience is that with each week that passes, the LVR that banks will lend just keeps going down.

            I am sure there are a few brokers on PT who are full of horror stories

            We seem to have hit a speed bump, lets see how long it takes to get over it.

            All the best,

            Niall

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            • #7
              Revolving Credit Mortgages: Who's the best?
              From my experience it is about what you negotiate with the lender to do with Legal fee contributions, fee discounts ,and rates discount.

              so, my answer is a GOOD mortgage broker like Mike England from Investor finance.
              Last edited by Orkibi; 11-04-2008, 10:49 PM.
              New Zealand's #1 Marketplace for Property Investors & Sellers!
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              • #8
                Originally posted by Monid View Post
                Are you looking for anything in particular Perry?
                Nope. Just spent some time with a PI, last night,
                and was ruminating on the alternative options that
                might work better than the present arrangements.

                Not a crisis: LVR is about 37:63, debt is quite high
                in dollar terms, given the PI's circumstances, but
                cashflow is disastrous!
                Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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                • #9
                  I'm with Glen on this one - NZ Home Loans. I've had mortages with them for 10 years now, and haven't a single complaint.

                  Yes, there is a $250 app fee - but NO monthly bank charges or transaction fees (except for over the counter transactions where they can sting you ). Only possible downside is they don't issue cheque books - but that is a negligible consideration in these days of electronic banking.
                  Last edited by BusyLizzy; 12-04-2008, 12:17 PM. Reason: correction of app fee - I am out of date!
                  Lisa

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                  • #10
                    I don't believe there is a material difference in the terms of RC facilities with any of the core lenders. The pricing of these facilities jump around a bit. NBNZ used to apply a discount to RC accounts from floating rate loans, while other lenders were charging a premium. Most of this has disappeared in recent times & the rates more or less align with standard floating rates.

                    Depending on the purpose of borrowings some facilities have an effective P&I reduction in the limit amount, so even though you retain the re-draw capability it gets steadily lower each month.

                    At the end of the day it comes down to your business relationship with your lender, how valuable your total portfolio is, your ability to negotiate superior terms (good luck if you're highly geared now*).

                    * I had an application this last week for a "low doc" loan at 95% LVR from a business customer asking for all fees to be waived along with interest rate discounts, and I just laughed!

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                    • #11
                      Originally posted by BusyLizzy View Post
                      I'm with Glen on this one - NZ Home Loans. I've had mortgages with them for 10 years now, and haven't a single complaint.
                      Thanks.
                      Had a peek at their web site: zilch about RC loans.
                      I'll suggest my friend phones them, next week.
                      Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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                      • #12
                        Kiwibank. No fees at all.

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                        • #13
                          Had a peek at their web site: zilch about RC loans.
                          I don't think they like to call it revolving credit. They try to distinguish it from the others RC's somehow. The concept is that your mortgage is split up into one or more parts: one part on floating (is the revolving bit) and the other parts on varying fixed term loans.

                          I originally split my PPOR mortgage into about 4-5 different parts of varying amounts, and had each one set up for a different term. I was easily able to make lump sump payments into whichever component I wanted (no penalty fees, but of course, that was a function of the current interest rates at the time being higher than what I was paying).

                          I think it worked better when the floating rates were lower than fixed rates. Now I keep my floating component to a minimum, transfer any surplus into an interest bearing account until I save up $10k to use for a lump payment.

                          I reckonI was able to knock 10-15 years at least off my mortgage by using this facility.

                          Of course, this was for a PPOR rather than an IP..
                          Lisa

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                          • #14
                            I presume they're a type of brokerage,
                            getting funds from elsewhere.
                            Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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                            • #15
                              Originally posted by Monid View Post
                              Only because of the $12.50 monthly maintenance charge per account.
                              ASB charges me $10pm. They give me free transactions on an omni account but since I dont have an omni account in the name of the company (i have one personally) I dont get the benefit.

                              I qualify for fee rebates from ASB for a number of reasons but I cant take the benefit of them because the account the qualifies me and the one that would benefit are all in different names. I am going to threaten to leave for Kiwibank soon in the hope they will play ball.

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