This is a bad look!
So...Resimac (ASX:RMC) have decided to cease new loan business for State Custodians. Meanwhile, as others have posted Homeloans.com.au have been started to get the new loan market leaving existing State Custodian customers to wither on the line as a cash cow for the greater business.
Really these warnings should be placed where Homeloans.com.au customers would read as they will be unaware of the ethical embarrassment they are signing up to.
To be caught up in what I consider an immoral business decision is disappointing. As the loser it’s frustrating.
This decision goes beyond the usual “funding costs” explanation. It’s segmentation and profit maximisation.
Was great but now a little disappointing
Signed a very competitive variable interest rate loan @ 2.9% for my investment. However, the failure to pass on any of the last two interest rate cuts is disappointing and should stand as a warning to new customers. State Custodians and Homeloans.com.au are both controlled by Resimac. Why are the interest rate decisions different between the two companies? Can a new customer even get a new product from State Custodians? I’ve only had a quick look but the structural changes to the entities and the failure to pass on interest rate cuts suggests State Custodian customers will continue being the losers under this strategic direction.
Unfair investment loan rates for existing loyal customers
I have just checked on the website that State Custodians has a rate of 2.74% for investment loans only for new customers with a LVR lower than 60%. It is very unfair to existing loyal customers who are paying their instalments on time even in the existing Covid-19 environment and have their loans lower than 60% LVR.
Bait, bait and more bait
Despite multiple declarations, including on this site, of not baiting customers - this is exactly what is going on. Only a few months into a loan, and the company yet again has a lower interest number on the front page but NOT FOR EXISTING CUSTOMERS for exactly the same product. Buyer beware.
- Verified customer
Bait new customers with low rate and then increase
Got owner Occupied P&I loan at 3.64% in Dec 2017, Interest was increased to 3.73% in May 2018. Customer service doesn't care and discharge team were happy to provide the payout quote and didn't want to negotiate.
Currently trying to refinance with another provider.
- The website (www.loanenquiry.com.au) for accessing loan and offset account are rudimentary. The withdrawal from the offset account can be done only to a external(another bank) linked account. This request needs to be done by 2.30 pm business day and takes around 24 to 4...
Bait and switch - AVOID!
State Custodians make a great many promises, however, once they've got you on their books, they decrease their competitiveness incrementally, constantly edging your interest rate up and up, no matter what they said at the outset.
They promise a 0.2 'loyalty' bonus after five years, but then they put your rate back up even higher after a few months, citing 'increasing costs'. This business model is clearly one to get the new customers in and then gradually hike your rate to well over the going %. I am bitterly disappointed and am already looking elsewhere. It's not even the rate that stings so much as the false promises.
Avoid this company if you possibly can.
Rates rise after you have signed up, even though low rates are available for new customers.
I have had 4x rate rises over the last year. I have contacted SCMC several times to ask why they have not applied the 0.25% loyalty discount after 60months (which was part of the reason I went for SCMC in the first place), and unsurprisingly have had no response from any of my correspondence. Rates rise after you have signed up, even though low rates are available for new customers. I will likely be finding another provider also.
Interest rates increased TWICE in last 11 months since the sign up
I signed up with SC at the rates of 3.64% for both my PPOR and Investment loans. Soon after signing up, Investment loan interest was raised to 3.99% and recently I received a letter that the interests are going up again, PPOR to 3.74% and Investment loan to 4.12%!!!
Of course, all this is happening while new customers still sign up with the rates of 3.64%. And recently they were even advertising 3.54% only week or so ago!!!
If the rates are going to be just like any other bank, it would make sense for anyone to go to bigger banks due to ...the fact that they will get better services from bigger banks, like branches, mobile app, better support, better online system, credit card with rewards etc. I'd like to see the rate dropping to what the new customers are getting. Higher rates should not be how the loyal customers are treated with!!
Interest rate up for no reason
Less than a year ago I got a loan from State Custodians to buy my next investment property. Today I got a letter from State Custodians that my interest rate would be up by 0.15%. This is despite the fact that for my other investment loans with different lending institutions nothing is happening. Moreover, no market conditions actually changed and RBA left interest rates on hold anyway. So, as soon as you become their client, State Custodians would not care about you. After getting this letter, I would shop around and move out, if such a move would be financially viable.
Can’t believe the loan assessor is blaming the fact he has a hard copy of everything that the loan application is still not approved after 5 days. Not sure why it would be a good idea to send personal documents via an unsecured email and then to blame the fact the documents are a hard copy not a emailed version it would take longer to approve, already worried about refinancing to this company
Are you a woman? Get ready to be ignored and forgotten
My husband and I have been going through the process of refinancing our loan and moving to State Custodians and I have become increasingly frustrated with the lack of transparency and inclusion in communication. I acknowledge that my husband is 'applicant number 1' on the forms, however I would expect a company in 2018 to have the capacity to use a reliable computer system that can identify the contact details of 2 people, not just 1. Every time I phone them I'm told my number isn't on the system, and I've been left off most email communication...including the actual legal documents to sign and return: if State Custodians expect me to sign a document, they might want to consider sending it to me. I don't believe it's a gender issue as such, but it's definitely an issue that needs to be addressed: I shouldn't be phoned at the end of the process to get a verbal 'yes' after all the details have been discussed only with my husband. And whilst it's easy for State Custodians to suggest that this is just a matter related to their internal systems, consider the fact that our current bank has offered to have a phonecall after regular work hours with both my husband and I via conference or speaker phone to ensure we both get the same information and can ask questions together: a courtesy never offered by SC.
- Verified customer
Poor customer service
Customer service and communication is poor. Sent through request to change auto debit. Was asked to submit additional document which I did. Since then have not had any response despite multiple emails asking this to be done. Finally I called in and they could not find the doc I sent so I sent another copy.
Told them that I needed it to be done urgently because I was going overseas. I was told I would receive an update but haven't heard anything since.
Their web portal is very outdated compared to other institutions and you can't really do much there. No app for phone either.
Dodgy valuation, poor customer service
State Custodians significantly undervalued a property purchased by me. This has been confirmed by two independent valuations which I obtained externally. I would not go ahead with a loan but time was running out and I had to complete a purchase borrowing some additional money from my friend.
As soon as a loan has been established, i needed to put some changes. Multiple calls and emails went unresponded. So, as soon as you are in, their customer service is non-existent.
January 23rd 2019 Update: No rate changes when all the others dropped thei...r rates Our rate still remains the same for our loan with State Custodians, whereas for all other investment loans we have with different lending institutions it dropped. Your rate is not competitive anymore State Custodians, so we started thinking about refinancing from you. A difference of 0.4 per cent is toooooo high to tolerate it.
Low rates but poor communication and execution
I took up a refinance to cover both my primary residence and investment property. Despite settling all paperwork a month prior and I gave them a specific date for settlement, they didn't contact the bank for settlement for my investment property till settlement day. As a result, all settlements were delayed and I ended up paying unnecessary fees. Refused to compensate the interest rate differential (I only asked the the actual days delayed) and claimed they didn't know the counterparty bank couldn't settle without prior notice. Also normal queries to customer care email took 3-4 biz days to get a reply. Low rates yes, but would I recommend them to a friend? prob not.
Poor customer service
Submitted an enquiry online Tuesday night just gone received a phone called wednesday morning ( which I missed but he left a voice message) then a sms and a email wanting to make contact all good.So I sent back that 1.30pm yesterday(Wednesday) would be a good time to ring and discuss my loan requirements as I would be on my lunch break ok no worries will make contact then.
Well it is now Thursday mid morning with zero contact from the guy that was going to ring yesterday, no phone call, sms or email.
Looks like business is going well when they dont need new loans.Time to try someone else for a loan.
Not good for existing customers
Good rate to start, though slow to do paperwork. Had part investment and part owner occupied. Two seperate portions. When I enquired
why the owner occupied bit did not get rate discount, Guess what! Now all counted as investment. None of the 2 rate cuts passed on even for the owner occupied bit. I have now received a letter changing the conditions regarding the interest rates. You need to be aware that what you sign up for can be altered easily. this company does not look after existing customers. Sadly I did read that in the reviews befor...
My options have now changed
very unhappy that the rate cut published at the start of may will have no impact on my investment loan. I work for a bank and the reason i choose to come to SC is the interest rate that they offer. My work is now in line with what SC is providing me had i of known that there will be no rate cut for investment loans a i would have NOT joined SC at all.
Why should home owners receive the benefit and not a investment property owners?
So the interest rate for those who settled AFTER 1st of March will have an interest rate lower than mine.
1st of March the interest rate offered was 4.52% and now with the rate cut they will receive 4.27% which is lower than mine when i joined SC in Feb.
Sold me a lower rate but after settlement State Custodians increased the interest rate without telli
I recently went to SC for finance to fund an investment property which was handled efficiently HOWEVER, SC uses bait pricing by offering a low rate 3.99% but after settlement within 3 weeks, they increased the variable rate to 4.14% without telling me. I only noticed it on the system after logging in. SC seems to be deliberately baiting new customers and pushing up the rate after you have become their customer.
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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