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Finance finance finance, you see it advertised everywhere. From your portfolio lenders, securitized lenders, wholesaler’s, aggregators& brokers.

They compete mainly by way of advertised price of their product to the retail market place. Next form of perceived competition is by product features, [you get an offset account with this loan, we throw in a credit card& by the way if you sign this week we will throw in a trip to Fiji, how good is that?]. Some of the majors will try to create a beach head by overwhelming all competition in an area by dubious advertising like 100 – 105% home loans which are mysteriously not forth coming to the general public 95% of which don’t qualify, of course we can on sell you these other loans which you might qualify for but you will need lots more deposit.

As a consumer I would suggest service is more important to you that advertised interest rate pricing.
You will notice there is scant advertising regarding the service offered by lending institutions. How many guarantees of service have you seen from lending institutions? We will guarantee this interest rate, this feature blah blah...but how many have you seen guarantee that we will have your money ready for the settlement date. How many lenders will guarantee an unconditional approval in 7 days?

As a consumer I would suggest the interest rate & features will take care of themselves over time. If the rates are over you can always refinance down the track. So if you are going for finance for a property purchase firstly what you need to be looking for is some sort of guarantee for service then next the fee’s involved in the loan , particularly the exit fee’s, lastly worry about the interest rate. Purchasing a property is stressful enough just with the added work burden, you don’t need extra stress from non-performing finance providers.

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