16 October 2014
16 October 2014,

Do you pay attention to bank advertising? Clearly a lot of people must. I would imagine that Sunday night prime time is costs a lot to advertise on TV??  Picture this .


You’re kicking back on the couch and an add comes on showing…. A young family wins an Auction for their dream home. You and these other families miss out and are insanely jealous. Because you they got their home loan from a certain bank. Oh man I gotta get me one of those, Quick, quick pick up the phone…


If you act quick you can get their “Aptly named, Flexi First Home Loan”. and look what you get… They proudly say.


2 Year Flexi First Option Home Loan Variable introductory rate On new loans approved by 31 December 2014

Comparison Rate

Must be good it has 2 stars telling you to read the bottom of the screen. And I tried. I rewound and paused my TV in an attempt to read their fine print. Now I don’t have the world’s biggest TV but ok at 42 inches and I could not read it….


For your info here is the small print from their website:

*Apply a discount of 0.49% p.a. to the standard variable rate for the Flexi First Option Home Loan for two years from the loan settlement date reverting to the then applicable variable Flexi First Option Home Loan interest rate. Interest rates are subject to change. Not available in conjunction with any other offer. **The comparison rate for the Flexi First Option Home Loan is based on a loan of $150,000 over a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges.

What is my Point?

The reason I am telling you as this kind of advertising in my opinion is misleading and just complete rubbish.

So you get 4.84% that sounds good… oh, but for only 2 years you say… hmmm then what? – We’ll then you have an uncompetitive interest rate and if you try and change it guess what. Of course there fees to try and make you stick around.

And don’t get me started on the comparison rate they have quoted. Who in Australia, (certainly not in a metro area) can get a $150,000 home loan so why compare it on such a small loan amount? And then a warning …. “It does not include any fees and charges”…

Please think about this to get a true comparison on any offer from a bank YOU MUST include any fees and charges to get a true indication. Looking at the interest rate in isolation is choosing a car based only colour.. Get a red one it goes faster…

Think about it, if you a have a $150,000 home loan but pay many hundreds per year every year to get this awesome rate are you really that well off? Can you do better?

I hear some people say “why should I use a broker” here is a perfect reason. The bank is acting in the best interest of the bank by pushing a product that will make them money and not look after the your best interests.


This type of product is referred to as a honeymoon or intro rate loan and it is not even that special. There are lenders that will offer you better than 4.84% and not just for 2 years.

Here are 2 amazing example that have just been released

  • 4.69% no ongoing fees, free offset
  • 4.62% $350 annual fee unlimited offset accounts

So please don’t listen to their Marketing department, they don’t have a clue about loans. They are not licenced to advise on home loans and have no clue about what other lenders are offering or what is best for you.

Please talk to a professional Finance Broker / Credit Adviser that will listen and understand what is best for you and offer advise on you your options. Getting a loan is easy getting the best loan requires good advice


Click here to make an appointment with me.

Click here to get a special report on how to save huge on your home loan



David Johnson – The Home loan Guy

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