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Whats the deal with Ozzie Mortgages?

Whats the deal with Ozzie Mortgages?

Old Feb 13th 2006, 10:33 am
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Default Whats the deal with Ozzie Mortgages?

Hi all,

Much to my dismay...Oz mortgages seem to be much more expensive than the UK!

In the UK BOE interest rate is 4.5%...and one can usually find a discounted 3 year mortgage for around this...or even less..and then it reverts back to BOE +1%.

However in Oz...it seems as though the Bank of Oz interest reate is around 5.5%..but if one shops for a mortgage...the best one is looking at 6.6% discunted for 1 year only...and then it reverts back to 7.3%!!!(which is way above the SVR)

Can anyone provide reasons why????????

Thanks
TC
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Old Feb 13th 2006, 10:54 am
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Default Re: Whats the deal with Ozzie Mortgages?

Hi,

I just in the process of buying my first house, and have only managed to get 6.74% through a broker! ...I'm not totally clued up on mortgages with this being my first one, but I do know that bank charges in general are pretty high our here! ...when I first opened a bank account I was paying for every single transaction! Then I found for around $5 a month all transactions were free! ....but that was after paying a big bill for the first month!!!...it's a bit of a joke really!

Other than that, life here is great!
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Old Feb 13th 2006, 3:35 pm
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Default Re: Whats the deal with Ozzie Mortgages?

Originally Posted by GrantP
Hi,

I just in the process of buying my first house, and have only managed to get 6.74% through a broker! ...I'm not totally clued up on mortgages with this being my first one, but I do know that bank charges in general are pretty high our here! ...when I first opened a bank account I was paying for every single transaction! Then I found for around $5 a month all transactions were free! ....but that was after paying a big bill for the first month!!!...it's a bit of a joke really!

Other than that, life here is great!
ING Direct are offering 6.66% at the moment
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Old Feb 13th 2006, 3:57 pm
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Default Re: Whats the deal with Ozzie Mortgages?

Originally Posted by ossigeno
ING Direct are offering 6.66% at the moment

Is that considered good in Oz?

How long are Ozzie mortgage terms. Are they genereally 25 years like here in the UK?

Do most Ozzie's take out interest only or repayment mortgages?

Thanks
TC
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Old Feb 13th 2006, 8:30 pm
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Default Re: Whats the deal with Ozzie Mortgages?

Hi,
Don't know about most aussies, but I've taken out a repayment mortgage over 30 years. I was told that it's better to start at 30 years as it's easier to make extra payments than it is to extend the terms??
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Old Feb 13th 2006, 8:45 pm
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Default Re: Whats the deal with Ozzie Mortgages?

Originally Posted by ossigeno
ING Direct are offering 6.66% at the moment


:scared:

That's not a good number LOL
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Old Feb 13th 2006, 11:51 pm
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Default Re: Whats the deal with Ozzie Mortgages?

Hiya,
We have just signed up for our first mortgage too. We went with Rams No Doc loan. We didn't provide anything just bank details, it's a bit like a self cert mortgage in the UK.
If you pay fortnightly rather than monthly your payments will be less and it reduces your loan by around 6 years over the term. It has also been suggested that we should make over payments when possible as this will also reduce our loan term.
We got the $7,000 first time home buyers but were not entitled to reduced stamp duty as we had owned a house before. The small print says that you can't have owned a house in Australia or anywhere else in the world. The fees here are a lot higher but with the home buyers we break even.
Regards
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Old Feb 14th 2006, 12:17 am
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Default Re: Whats the deal with Ozzie Mortgages?

I have found this equation works well for aussie banks

aussie banks = robbing ba$*ards

That is probably why the rate is so high you just end up biting the bullet because theres no other option.

Originally Posted by touchingcloth
Hi all,

Much to my dismay...Oz mortgages seem to be much more expensive than the UK!

In the UK BOE interest rate is 4.5%...and one can usually find a discounted 3 year mortgage for around this...or even less..and then it reverts back to BOE +1%.

However in Oz...it seems as though the Bank of Oz interest reate is around 5.5%..but if one shops for a mortgage...the best one is looking at 6.6% discunted for 1 year only...and then it reverts back to 7.3%!!!(which is way above the SVR)

Can anyone provide reasons why????????

Thanks
TC
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Old Feb 14th 2006, 12:19 am
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Default Re: Whats the deal with Ozzie Mortgages?

The Commonwealth Bank do a fixed rate first year of 5.99% if you bank with them and have the wealth package.
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Old Feb 14th 2006, 12:23 am
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Default Re: Whats the deal with Ozzie Mortgages?

Originally Posted by touchingcloth
Hi all,

Much to my dismay...Oz mortgages seem to be much more expensive than the UK!

In the UK BOE interest rate is 4.5%...and one can usually find a discounted 3 year mortgage for around this...or even less..and then it reverts back to BOE +1%.

However in Oz...it seems as though the Bank of Oz interest reate is around 5.5%..but if one shops for a mortgage...the best one is looking at 6.6% discunted for 1 year only...and then it reverts back to 7.3%!!!(which is way above the SVR)

Can anyone provide reasons why????????

Thanks
TC
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Old Feb 14th 2006, 12:24 am
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Default Re: Whats the deal with Ozzie Mortgages?

Originally Posted by Billabong
The Commonwealth Bank do a fixed rate first year of 5.99% if you bank with them and have the wealth package.
Whats a wealth package??
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Old Feb 14th 2006, 12:33 am
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Default Re: Whats the deal with Ozzie Mortgages?

Originally Posted by TrickyTree
I have found this equation works well for aussie banks

aussie banks = robbing ba$*ards

That is probably why the rate is so high you just end up biting the bullet because theres no other option.

Westpac have started charging $2 every time you withdraw money unless its at their machine

We had a mortage with them a while back, but the annual fee for the mortage account was about $300 then it went up to $660, when you pay out the mortage early there was a penalty too. Read all 892,000 pages of the fine print when you sign up.

Last edited by jad n rich; Feb 14th 2006 at 12:37 am.
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Old Feb 14th 2006, 12:33 am
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Default Re: Whats the deal with Ozzie Mortgages?

Originally Posted by Pootle
Whats a wealth package??
From memory it costs about $300 but you get the money back and more in reduced interest rates and no bank charges.

http://www.commbank.com.au/personal/...lthPackage.asp
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Old Feb 14th 2006, 12:38 am
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Default Re: Whats the deal with Ozzie Mortgages?

Originally Posted by TrickyTree
I have found this equation works well for aussie banks

aussie banks = robbing ba$*ards

That is probably why the rate is so high you just end up biting the bullet because theres no other option.
Not one to justify the aussie banks BUT atleast it doesn't take 3 days for your money to reach your credit card company or other bill payments or even another branch!

Swings and roundabouts really..........
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Old Feb 14th 2006, 12:54 am
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Default Re: Whats the deal with Ozzie Mortgages?

Originally Posted by OzSheila
Not one to justify the aussie banks BUT atleast it doesn't take 3 days for your money to reach your credit card company or other bill payments or even another branch!

Swings and roundabouts really..........
It can take days here too unless you are just transferring funds within your own accounts.

If you use "BPay" or "Pay anyone" facilities this can take up to 48hrs to register as having been paid, longer sometimes if the money is being transferred from one bank to another or over the weekend or a bank holiday.

Jad&Rich: There are some banks that have packages which cost $5 a month [or free monthly fee if you have $2.5k in your account]. For a fee of $5, these accounts allow you as many free EFTPOS transactions as you like provided you use their own ATM machines.

All banks the world over are a rip off. They are some of the richest institutions in the world however at the end of the day they are in the business of looking after our money....... for a fee
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