WARNING - Read the one star feedback first!! There is a very real difference between old and new customers comments.
Watch out for Loans.Com.au. They entice you in with attractive 'new' rates, only to then slowly make your home loan uncompetitive over time. At first I was very happy with the product.
But as all the interest rates were going down, Loans.com increased mine blaming some increased funding cost on the international market!!
They also don't pass on the full interest rate cuts by the RBA, so over time, my daughter's home loan rate with the Commonwealth Bank (a big four) was better than mine!
So I decided to call them to discuss this anomaly, as the...
BEWARE: Loyalty tax for existing customers. Access to lower advertised rates blocked! Date: Aug 2019
I refinanced our home loan 3 years ago with loans.com.au. Standard P&I loan. It was a long process which I came close to withdrawing my application a number of times due to frustrations. I persisted because I was lured by the low advertised interest rate. However, over time my interest rate has crept slowly up and now well above their advertised rates. BEWARE, as an existing customer you will be locked out and unable to get their lower advertised rates. Loyalty tax on existing customers. A fact well hidden. Transparency?
But that is not the kic...
They make direct debit from your account with no authorisation
They made a direct debit transaction on my loan account without noticing me or getting my authorisation which is illegal and it is to a different person's account. Called crime stopper and the other bank who said will investigate but got no reply from Loans com au for more than 48 hours still. Will make formal complaint.
Paid for a valuation and then declined loan
During the loan process, Loans.com.au requested a valuation of the property (our up front cost) and then subsequently denied the loan. Is this a normal practice or just unique to this company?
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Beware the low rate offers. They only last a few months and up it goes.
Best rates advertised. Once hooked, up it goes while still offering new customers the good rate. I moved loan provider. The saying goes. If its too good to be true….
Good Rates to start with but as an existent customer, I pay more that new
As I write this, the advertised rate for the product I have is 0.1% lower than I am getting (with them passing on 0.2% of rate reduction). I had been paying 3.84% interest rate when their advertised rate had been lower. i am leaving them as my situation means that negotiating with them is not worth it. but beware of suck in and increase rates later tactics!
Pulled my pre and post approved financing from under me at the eleventh hour leaving me financially exposed, I was upfront and honest about every aspect of the property from the first phone conversation. They have completely wasted my time and I'm potentially $55,000 out of pocket with no recourse.
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