This is a trap. You start with a low interest rate and it doesnt take more than 9 months that the interest rate will be bumped up. This happened to me this week and is happening despite the fact that cash rate is on hold and no other banks and lenders have increased their interest rate.
Thanks
Ebi

They first lured you in with the low rates and within months of settlement, started increasing the rates. And their explanation is that the funding has increased but continue to offer the low rates to new customer.

That shows just one thing, they have different funding model for new and existing loans. Aggressive new loan rate to lure you in and once you have signed up and paid all the switching and admin fees, they switch the funding to greed-driven model by multiple rate increases immediately after settlement.

The government always go ...

We started out with a great rate (3.64%). They have now bumped this up 1%. There reason is the raised cost of funding but the truth is that no other banks have done this. SC is more risky to funders than the big banks so their cost of funding rises higher and more oftern than the big banks. As everyone else has said, it starts great but will end in tears.

Make sure you budget for an increase to 4%.

Also, i called and asked for my interest rate to be returned to the advertised rate but they refused. Not sure how those people below were successful, if those reviews were legitimate.

I called them up as a new customer for a substantial loan. Naturally I had a few questions which I wanted to clarify and so I followed up with emails to the contact person assigned to me. Right from the start he would not send prompt responses and I would need to call them which they never pick up and it goes on the answering machine… so a very very poor first impression.
Also they seem to have things to hide, in particular charges etc,,,, I wanted to know upfront all of the fees and charges but the person assigned to me stuck to his script of...

Statecustodians home loans - what a joke! We decided to apply based on the 3.54% variable rate on Owner occupied as advertised. We made enquiries on 10/4/18 and was told we'll get a call on 17/4/18. [name removed] their lending specialist did call us today and informed us at the very start that the interest rate would go up tonight (!) from 3.54% to 3.64%. We spent an hour filling in their pre-approval application, and awaited a call only to be told this! What a joke!!! Keep away!

We first contacted State Custodians Feb 6. We dealt with a specialist lender (SL) and our point of contact (POC) during our experience. We had an owner occupied (OO) and investment (IP) to be refinanced.

After some further research we found this review site and were concerned with some of the reviews and how State Custodians operated so we talked them through with the SL.

We put our understanding in an email and asked for confirmation. We stated:-

“As stated by you this morning, the owner occupied P&I rate is applicable for both the P...

BEWARE. We were lured in with a variable loan rate of 3.99% in 2016, now paying 4.5% after incremental increases, which we questioned and had very poor communication from SCs.
Advertising now at 3.54% for new punters. We have made a complaints to ASIC and ACC - with no glory, now lodging with the Financial Ombudsman Service.
Sad to see the same story for other customers.
We are discharging our 3 mortgages within the next month.

The rates are good to start with and the loans are low maintenance, but they are quite deceptive in the way they manage these. Rates are not advertised as introductory or expiring after a certain period, but they slowly increase your rate above the advertised rates to some higher rate not disclosed anywhere on their website. I discovered this a rang and they said this was normal, but also offered to reduce my rate to the website advertised rate, however only a three months later and it is happening again. Look elsewhere if you don't want to have to be wasting time checking on their sneaky practices.

I have been with SC for 3 years, first got in at very attractive rate (may be best on the market). I stay happy for a few months, then they start increasing the rate multiple times especially last year. They were using all sort of excuses like funding cost, APRA pressure (which only apply to Bank, not non-bank).. etc. SC now decides lower the rate to get more new customer, but existing loyal customer is not getting the same treatment. I've called up customer service but they declines to adjust the rate to match the new advertised rate. This i...

Despite specifically requesting that communication be addressed to both my husband and myself as co-applicants, this organisation continued to email either only my husband or when I was cc’d they addressed the correspondence to him only. And when the loan finally settled the congratulations was again only sent to my husband. Last time I looked it was 2018 and the days of women being neither financial contributors or decision makers has long gone. Simply the most appalling sexism I’ve had the displeasure of being subject to in . . . forever. Well done State Custodians.

Stay clear and beware. I dealt with so many different people it really was like calling a call centre. I would start speaking with someone then the next week they would be gone. Really frustrating process.

The rate is good but I already have my concerns only a couple of weeks after settlement. I don't think this is going to be a long term thing.

It is my believe that State Custodian wish to limit their Interest Only home loans. As pointed out earlier in the year of them being a higher risk. In actual fact Interest only home loans provide a better margin for the lender as the Principal varies only slightly. There are so many people who have been caught up in the .35% interest rate hike. State custodian could have adopted a different strategy and they have stated that they have been holding the costs for a very long time. So they knew a very long time ago that it was going to rise, and s...

Bad company. They suck you in with their low rate and then increase it by a massive amount to make money. Yes other banks have also been increasing rates but not by such a big amount...

We would not recommend this lender to anyone. Their business practices are, in our opinion, completely disgusting and unethical. Our loan settled on the 28th September. Three days later, we received a letter (dated two days before settlement!) stating that our interest rates were going up by 0.35%. There had been no indication whatsoever at any stage from any of the people at SC that we'd been dealing with that we were going to get hit by an interest rate rise so soon after switching to SC.

We would not have switched over to SC if we had kn...

My Interest only loan settled on 01/08/17 at 3.89%
They raised my interest rate on 25/09/17 to 4.24 %
That's a monthly repayment increase of $100 per month and 0.35 basis point increase in 6 weeks

"BUYER BEWARE"
Even the notification letter I received was a photocopy and stated -
due to the widespread increase to variable rates on interest only loans
by other lenders they were raising their interest rates.
" The other banks recently dropped their Interest only rates"
This letter received, looks like a standard letter they send to all customers upon settlement. ...

I was lured by the competitive rate of 4.09% for my variable, interest only investment property so I decided to refinance with State Custodians, it was a long drawn out process with a large amount of documentation required initially and then additional information and documents were requested as my application progressed. State Custodians were helpful with this and promptly replied to my questions, I stuck with it and my loan settled.
The next day I received a letter in the post that the rate was going up by 0.35%, the date on the letter was ...

We signed on with State Custodians two months ago. It took a very long time to meet their strict compliance requests but we understood this was part of the process. We secured a good rate and were pleased. Less than two months after signing on, and with no justification, they raised our rate by 0.35% from 3.64% to 3.99%. When I called customer service to request an explanation, I was informed it was a 'business decision' and would take two weeks for any kind of review to take place. I understand this is common practice with many banks but I would NOT recommend anyone else to take out a loan with this company. These kind of lending practices verge on predatory. Use caution please!

State Custodian increases their rates twice when I settle my loan this year. Somehow RBA hasn't increase rates and they claim competitors had. The website interest rates are really for advertisement only. I would question the integrity of this institution.

After two weeks they got back to me. I didn't meet their criteria apparently! By that time though I had been approved for an88% LVR with ANZ. So, maybe they can't read financials or, bother to ask the right questions. Having said that it probably is down to each consultant and always some are better than others.

My wife and I recently tried to refinance our home loan because of the attractive interest rates that were offered. We are currently with Suncorp bank and are servicing our loan easily. I supplied all of the information they required in the first 24 hours. it started by them needing more information every day for a week, then more information every week for a few. Then I had to start chasing them to find out the status of my application. Always very sorry, but nothing ever improved. after weeks of chasing them, It got to a point where i was ver...