Shocking customer service
Can never get through on their phone lines. After on hold for 10min, you have to leave a message, and they promise to call back in 5 business days (what a joke). Tried that twice plus multiple emails to customercare email and no response after 2 weeks. Avoid like plague as no service after signup
Appalling service, and same big rate increases
I took out an investment loan with SC two years ago. Initial customer service was great and the rate was good. however just two years later we were already paying 0.8% above the equivalent advertised rate. Insane! They spout this stuff about a tougher market with tighter lending criteria... And look, I fully get this - but don't advertise your product for so much lower than what you give your existing customers!
We recently moved into the house. I decided to wait and see what would happen with changing the loan to owner occupied before looki...ng into refinancing, figured I might get put back down to a lower rate. The simple act of changing the property from investment to owner occupied has been an absolute farce of poor customer service. I have sent multiple emails that have never been responded to. When calling I am often forced into leaving a message, to which I never receive a reply. The most recent email I received promised a final resolution of our loan within 72 hours. This was about 23 days ago, and many ignored contact attempts later. Absolutely terrible conduct. We have just been formally approved for a refinance with another lender. Hopefully they will be better, but the bar is so low I'll be surprised if they aren't. Avoid State Custodians at all costs.
Don't Trust State Custodians
With rents decreasing we needed to review our investment property interest only home loan. Our LVR is less than 50%. Application process was good, but things went downhill after that. On settlement day and after all the fees were paid, State Custodians increased our rate from 4.09% (IO) to 4.44% (IO). Their website was still offering 4.04% (IO) less than our contract. I contacted them 5 times over a month and a half and they never replied back. I finally managed to get someone on the phone only to be told there is nothing they can do at the mom...ent and to ring back in 6 months. We then received a letter with another increase to 4.63%. (0.54% in 7 mths). Their rate today on their website is 4.14%. We have other interest only investment loans & they didn't increase. Don't get sucked in with their advertising. Truly a sad experience and disappointed in what could have been a good long term relationship. We had to end up paying to move to another lender as we couldn't continue with such a dishonest company.
- Verified customer
Bait Rates and terrible service
I advised State Custodians that I had moved into my rental property so required a rate review as moving from an investment loan to a home loan. After sending in all the required documentation and following up twice I finally received my rate review. I sent an email on June 21st 2018 querying why the rate was higher than the advertised rate. No response
I followed up the email on June 27th 2018 no response. It is now the 5th of July 2018 and I have called State Custodians on 137262 only to hold for 10 minutes & then being forced to leave a mes...
- Verified customer
Worst company. Do not finance with them. Bait rate then increased shortly after.
Refinanced with State Custodians about a year ago and have been hit with 2 rate hikes since then. My rate is now much higher than the advertised rate. From other reviews this appears to be how they work. I am looking to refinance to another lender now. We should all report to the credit ombudsman given how common it is for them to do out of cycle rate increases after settlement.
Missing funds! Can't explain where they went
After realising nearly $2000 had gone missing from my offset, i enquired as to why the balance had dropped, and after 2 weeks, they still cant give me an answer! They can supply me with every detail on all DEPOSITS for all additional funds, but cannot explain or show me where the missing money has gone!
Nothing shows up on the statements, no internal processes in place to be able to show evidence of when or where.
How there can be no trace of funds being taken from my account is a very scary thought!!
Still waiting for them to get back to m...
I changed from a big four bank to State Custodians in May 2017. Since then four separate rate increases have occurred (almost 1% higher than the initial rate). If this isn't baiting I don't know what is!! If it is not baiting how can they offer new customers the same as my initial rate? Unfortunately, unlike the big banks, these institutions are not held to account by the media when raising interest rates. There is obviously an affiliation with a big four bank...One would question whether they have a stake in State Custodians to keep their mo...rtgages by stealth?? ***Do not go with this 'online mortgage broker'***** I will be looking elsewhere if there are any more interest rate increases. Please ensure you open your letters from State Custodians as they are not all statements as they look (missed three notices of interest rate rise). Please note the almost cut and paste response from 'State Custodians' when replying to any of these reviews - Care about customers???
- Verified customer
BEWARE OF MULTIPLE OUT OF CYCLE RATE RAISES
I have been with SC for three years and have never missed a repayment. I can confirm that all of the other reviews on this site and others are correct. SC lure new customers in with an attractive rate then shortly after settlement will raise your rate when the RBA and other lenders haven’t. This has happened to me multiple times now. My rate is now what I would be able to get from big 4 bank. At least with the big 4 due to their large customer base would not be able to conduct themselves like SC do.
SC make all kinds of excuses to why they’v...e had to increase your rate look such as their wholesale funding rates have increased. I understand this as I work in the finance industry, however if this is the case then why is my rate higher than what you’re offering new customers? SC are opportunistic as they know that refinancing is a hassle and will cost the customer in exit fees etc. I will be refinancing my loan to a reputable lender, one which will reward loyalty instead of punishing me for being a good customer.
- Verified customer
Loyal customer treated with contempt
I have been with State Custodians for more than 5 years. Since the second half of last year, the interest rate has been creeping up. The rate was first increased by 0.35% during Oct 2017, then an additional 0.13% this month May 2018.
I remember there is supposed to be a 0.20% interest rate decrease for staying on 5 years at the time I signed on to State Custodians. Not only I did not receive that loyalty rate decrease, which should have been offered on Mar 2018; to add salt to the wound, I was hit with more increases in the absence of any m...aterial market factors. The latest rate increase announcement also came right after the government implements the $530 tax rebate for next financial year. It just doesn't seem right. I am quite disappointed. Update 29/5/18: I have been in contact with their "customer retention team". Communication has been dismal. They gave bad logic to justify the rate increase, and simply expected me to just "deal with it". They could not explain why "market forces" somehow doesn't affect new customers. When I persisted, they said they will offer me a lower rate if I could bring my LVR to 95%. That time, I was told my LVR was more than 95%. When I asked what is my LVR exactly, and what is the V (value), the team leader could not say. So I was being bluffed and stringed along the whole time. Finally, after waiting one week, I was told the numbers. As I had expected, they put in an extremely low market estimate (so much lower than trailing the 12 months median sold price). It appears that they have intentionally screw my LVR so that they can justify rate increase. This is extremely unethical and totally unacceptable. Back then, I was also told on the phone that I will not be given my 0.25% loyalty rate reduction because "there is no proof" of such promise. Every customer was promised this loyalty reduction, and a quick look at comments and reviews online confirmed that. Actually I have already found the written proof. Chances are they will come out with some random nonsense to justify not passing the loyalty rate cut to me. I as a long term customer have been treated with total contempt.
Also disappointed and stung by bait advertising
As other posters have identified, I was lured to change from Members Equity to State Custodians for the low interest and positive review on Canstar. After refinancing in February this year, less than 3 months later they've just raised my rate while keeping it lower for new customers!! That's called bait advertising and its definitely unethical and arguably should be illegal. I just called to voice my complaint, and encourage others to do the same. The man on the telephone had obviously received many such calls. Very disappointed. We should all look elsewhere, alas.
I have had a loan with state custodians for around 3 years. These guys will lure you in on a great rate and the sneakily up the interest rate. We have had 3 or 4 interest rate rises outside of the reserve bank in the last couple of years to the point where my rate is nearly 1% higher than when I switched.. They will send a letter saying external pressures blah blah blah has made it necessary for these rises. When I rang to complain about this and request a better deal the gentleman I spoke to took my details and told me that one of the team would contact me within two weeks. I am still waiting 3 months later. Do NOT believe the great rate on the website, it is only an introductory rate to lure you in and it WILL go up. Avoid Avoid Avoid.
- Verified customer
Don't believe their advertised rate
I signed up on a variable rate of 3.64%, with settlement in February 2018. Like many others before me, I got a letter from them earlier this month (May 2018) saying my rate would go up by 0.09% to 3.73% due to "funding pressures". Meanwhile, the exact same rate I settled at is still being advertised today. I'm not a complete airhead, so it's a bit hard to believe their spin. Thankfully my loan is small so the rate rise adds up to around $300/year but don't sign up with them expectation that they're going to be a lovely, small, caring bank - they're as bad as the rest. I'll probably give them a year then refinance again - no bank deserves anyone's loyalty.
Do not recommend!!
Changed from nab to state custodians in November 2017. Worst mistake....6 months in, I received a letter (dated two weeks earlier and I live in the Sydney cbd) with an excuse due to global market conditions, the investment rate has jumped from 4.09 to 4.24. Service isn't great and many times you are waiting for awhile. The whole experience changing from nab wasn't good. Now I have to look at changing and to be fair will go back to a bank as this experience I do not trust a non bank lender now thanks to state custodians. I changed loans on my own and will get a lender to help next time as it was stressful.
Bait advertising. Avoid.
They suck you in with a low rate, then increase that rate twice in the first six months whilst still advertising the low rate on their website for new customers.
You very quickly end up paying 0.5% above their advertised rate.
Bait advertising. Should be illegal.
Multiple interest rate rises
Bad move State Custodians you've had my business for over 5 years and it would have been 20-25 years but things have been going downhill for sometime now. I've recently had problems with rude call centre staff, being charged unreasonable fees when I was having difficulties with my health and now multiple interest rate hikes yet low new customer interest rates remain? Shows you dont give a stuff about long term customers and just want new money coming in. Prehaps you should stop with the prize giveaways and handing out cash grants for the State Custodians 'Young Garvan Edgy Ideas Award' and start looking after your actual customers becuase you've lost me!
Increase rate rises
When I signed up with State Custodians my biggest concerns was their past behavior of increasing rates once they locked in customers. This was apparent through sites like this. I was advised that this was not how they operated as it was usual for customers to be on higher rates than the introductory rate. Low and behold only 6 months later the same trend. I can somewhat understand if this was the case for new users too but to hit you once you've signed up appears to be their business model.
My rate has increased twice in less than 9 months while the advertised rate for new customers remain
My title says it all....
I understand that "variable interest rate is determined by a number of external market factors, both domestically and abroad" and therefore my rates have to be adjusted as has been mentioned in a recent letter that I have received from State Custodians. What I don't understand is how these external market factors have no impact on their advertised rates for new customers but have an impact on their current customers.
Can you please provide rationale, other than being dishonest to your customers and trying to max...imise your own benefit, why the same product has to be provided at different rates for different customers? I have recently move to Australia from North America where lenders have one rate, which is provided to all of their customers. I will refinance my loan if my rates are increased a third time without changes to the advertised rate.
Nothing but a trap
They advertise low rates but the service is terrible. You will never get your loan on time. Your plans will go down the drain. They are a waste of time. Totally unreliable. Few months after you sign up, they increase the loan rate even though neither RBA or other banks increased rates. This is a trap. Run!
- Verified customer
Extreme Caution Required!
Do not go with this bank! I made the decision to go with this company based purely on interest rate. I have been with them for 3 months and received a letter advising that my rate would be increased. I understand that I signed up for a variable rate however the reason for the change was given that market conditions have increased the funding costs. However on their internet site they continue to advertise the rate I signed on for originally. I would be very hesitant based on other reviews here this has happened to numerous other people and will most likely happen to you shortly after signing that dotted line. I will be moving my loans elsewhere on principal. Be very careful!!
Questions & Answers
What is the discharge cost if leaving/distachargin a state custodians variable rate home loan of $250,000 please?
Has anyone had their interest rate increased above what they are offering new client. Eg Mortgage rate now is 2.58%
Anyone paying more than this rate.
let me know
Hi John I would urge you to read my last review about this company. They have admitted that they made an error in reversing a payment my ex partner made and put my mortgage in arrears to the tune of $19,700.00 plus Without notifying myself as the primary borrower. The matter has been with A.F.C.A for over 6 months and both State Custodians and A.F.C.A have delayed, evaded etc etc. If you don't have a loan with them Make Absolutely no mistake. STAY WELL CLEAR.. by the way State Custodians is a wholly owned subsidiary of Resimac. You need only look at the reviews people have posted about Resimac to see who you are/will be dealing with. Plus there are better rates available elsewhere. Hope that Helps. Cheers Paul
What is State Custodians LVR on units more than 6 levels in Potts Point in Sydney. Do you lend up to 80% or 70% of the purchase price.
Customer Feedback T.State Custodians
Thanks for your question. In general we can lend up to 70% LVR on units in metropolitan areas, however with Lender’s Mortgage Insurance we may be able to lend above 70% LVR. Please note that we would need the address of the property to provide a more definitive answer, so please call us on 13 72 62 and one of our Lending Specialists will be able to assist you.
The team at State Custodians
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