Home News State Custodians wins Mortgage of the Year Awards 2012

State Custodians wins Mortgage of the Year Awards 2012

Font size :

 

Mortgage of the Year

State Custodians outperformed itself this year to take out the big one in the 2012 honours: Your Mortgage’s Mortgage of the Year Award.

The SCMC Standard Variable Home Loan proved to be of such high quality, that not only did it take out three gold medals (including this one) and a silver all on its own, but it wrestled the title away from five time winner Ratebusters for the first time since 2009.

So, how did State Custodians do it?

First, let’s take a look at interest rates. The 2011-12 financial year has been riddled with unruly behaviour by lenders, who seem to have decided en masse to suddenly rebel against the recommendations of the Reserve Bank of Australia (RBA) and raise interest rates independently at every opportunity.

But, while some companies play follow the leader and up their rates, others take the opportunity to provide some great value and stand apart from their rivals. State Custodians has worked a bonus rate deal into several of its loan products that leaves competitors for dead.

The SCMC Standard variable Home Loan gets the ball rolling with a better than average rate. While this is good, its greatness is not revealed until five years later, when a loyalty reduction of 0.25% sees the rate automatically drop  assuming interest rates stay the same. A home loan is a lengthy financial commitment, so a rate discount that kicks in after five years means borrowers with a 30-year loan enjoy lower costs for nearly 85% of their repayment term. Not bad when you consider that the comparison rate on this State Custodians product before the bonus kicks in is approximately one full per cent lower than any of Australia’s Big Four banks.

Rates aside, the cornerstone of a solid standard variable loan is its range of flexible features. Here, State Custodians also strongly impresses.

The SCMC Standard Variable Home Loan offers an all in one account, with a 100% offset capability. It also allows unlimited additional mortgage repayments and unlimited free transactions every month. Borrowers can make as many redraws each year as they wish, at a minimum limit of $20 from an ATM or $100 via the internet.

Any loans taken out must be between $150,000 and $1m in value (exceptions can be made in certain circumstances), and range between one and 30 years. The minimum loan term of one year is generous, but State Custodians is undoubtedly confident that customers will stick around long enough to receive the loyalty bonus and then to enjoy it thereafter.

Borrowers have the option to make interest only or principal and interest repayments and have the option of up to four loan splits for free.

The maximum LVR is 95% with lenders mortgage insurance or 80% without, meaning the loan caters to most potential borrowers, who also have the option to fix interest rates for a $110 fee.

The State Custodians website provides details of all costs and features associated with the SCMC Standard Variable Home Loan, meaning no costly surprises down the line and top marks for transparency for the lender.

Finally, State Custodians provides superior levels of access to the loan, including via mail, ATM, cheque, phone/fax, EFTPOS, internet, over the counter, BPay and by credit card.

Well done State Custodians Mortgage Company for another great performance.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

House prices return to more affordable levels in mining towns House prices return to more affordable levels in mining towns

While the end of the mining boom has had a negative impact on property prices, homes in the region have become more affordable Read more

Borrowers should anticipate a possible rate hike Borrowers should anticipate a possible rate hike Some experts advise borrowers to look for a fixed loan that allows extra repayments so that they can whittle down the balance sooner ... Read more

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals ... Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Jul 27, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords