No Fee Home Loans
Written by admin on March 31st, 2011February 2011
As of tomorrow the 26th of February 2011, CBA will trot out a new product called the ‘No Fee Variable Rate Home Loan/Investment Home Loan’. Sounds great but could be as good as watering the driveway .
Apparently there are a ‘number of enjoyable benefits’ to home loan customers which I hope include fetching the newspaper and waves at Scarbourough . Others include:
A really competitive, low interest rate of 7.24%. I was once really competitive in high school long -jump, finishing a credible fifth and I didn’t charge fees. Its worthwhile pointing out that David Mort , who won the event effortlessly, also didn’t charge fees.
Greater transparency. I believe this may relate to all the fine -print which now has a slightly higher font size and is in Albertus Extra Bold.
Freedom of choice in repayment frequencies. Cudos must be given to CBA as no-one else does this. Actually most other lenders do this.
Low-Fee Credit Card with no annual fee. I’m nit-picking here but I believe ‘Low-Fee’ actually means there are Fees. Not ‘No Fee’. So don’t get the Low Fee if you don’t want fees.
Also notice from CBA’s blurb: ‘Whilst this product has no Bank fees, Government charges may apply and when there is >80% LVR, Lenders Mortgage Insurance (LMI) or Low Deposit Premiums (LDP) will apply’. So if you are like many consumers and get a bit starry-eyed, please do not think that CBA has overthrown the government and abolished those pesky government fees.
A quick comparison may shed some light on this amazing new product:
CBA No Fee Home Loan ($300K) 7.24%. No Annual Fee. Weekly Repays are $470.
CBA MAV Home Loan ($300K) 7.06%. $350 Annual Fee. Weekly Repays are $468.
Straight to the Two Dollar Shop…
To find out a more about CBA’s latest offering contact your local mortgage broker for an unbiased point of view.
Tags: Home Loans, mortgages