Any mortgage broker worth their salt will know that Liberty Financial has a very unique servicing model for loans with a lending value ratio (LVR) of 80% or less.
In fact it is so unique that where a client is not able to meet the servicing criteria for the bigger banks and other lenders, Liberty Financial can come up trumps as being the only lender the client can access funds through to purchase their property.
One would assume that Liberty Financial is well aware of the position they are in, and that clients using their service are likely not to meet the lending criteria anywhere else, so it is hard not to think that they are simply taking advantage with their ever increasing interest rates.
About 6 months ago Liberty Financial had the same servicing model for 80% LVR or less loans, but their interest rates for their Star AAA Investment loan were a very respectable 4.24% pa.
Then they decided if you were purchasing an investment property there would be a loading of 0.25% and if you wanted interest only another 0.10% – bringing your standard investment loan to 4.59%. BUT if you had 4 or more properties, including your owner occupied, you were classed as a professional investor and for this you can add another 0.50% – and now we have a not so respectable rate of 5.09% pa.
In the last week or so Liberty Financial has again raised their loading to 0.35% if you are buying an investment property, 0.20% for interest only and a professional investor is now 3 properties or more and will cost you an additional 0.75% – bringing the new rate to an outrageous 5.54% pa.
With such a small change to cost of funds in the last 6 months, it would not be unreasonable to think that Liberty Financial is taking advantage of clients who are unlikely be able to obtain finance elsewhere and therefore are stuck paying 1.34% more today for the same loan, than what they were 6 months ago!