We first looked into a home loan with this company after it was ranked as the Number 1 Home Loan product of the year by Money Magazine about 3 years ago. During the course of our research it appeared to be a good fit for us as it had no ongoing or yearly fees, an application fee that was refundable upon settlement, the capacity to redraw funds at any time and a very competitive interest rate. We didn't think working with an 'online only' bank would present any problems but we were wrong. The major issue was customer service. 1. They did not inform us of how much the mortgage insurance was going to be and it was subsequently added to the cost of the loan; 2. They did not submit our First Home Buyer's grant application which threw off our calculations of the fees we needed to have at settlement. After much harassment on our part (after settlement), they made numerous promises that the application had been lodged (which was a lie) and we had to redo the application ourselves and lodge it; 3. They did not disclose the other settlement costs, eg. the legal fees; 4. We had to harass them to receive the $500 refund on the application fee. It was a difficult experience and we had little direct communication with and poor personal service from LoanAustralia. Over time, we have had fewer issues, but their interest rate has not retained its attractive competitiveness which drew us in the first place and our overall impression of them was soured from the outset. We have waited 3 years now so that we only have to pay a minimum 'deferred establishment fee', in order to exit the loan. We are now working with a fabulous manager at a "REAL" bank and look forward to a much better experience.
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WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
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