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.

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.

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.

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.

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.

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.

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

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.

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.

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.

I am so disappointed with SC, so many limitations on simple transactions! I loved St George and was angry that they wouldn't come to the party with the lower rate which forced us to "look around". I am now paying for it. Think twice about changing over to SC.

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.

After reading all the stories here, I thought State Custodians (SC) must be alright. I have had the worst transition from one lender to SC. It has taken months from signing to settlement. Then I could not access my funds.

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.

Be Warned!