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Advantedge Home Loan Review

You could say Advantedge Financial Services is like the dark horse of the finance industry. It’s there, behind the scenes and working it’s magic, but nobody sees it.

Advantedge has been around for 20 years but was previously known as Challenger and changed its name when NAB purchased it. It acts as a wholesale funder specifically for mortgage managers. If you’re already banking with NAB, it might be news to you that it’s actually Advantedge managing your loan and NAB which are supplying the funds.

Advantedge funds many well-known banks like Homeloans Ltd, AFG Home Loans, Connective Essentials, Resi Home Loans, National Mortgage Company and Choice Lend. From a borrower’s perspective; on your statements and online banking – you’ll notice someone else’s name is on there, not Advantedge.

So let’s get started with my review on Advantedge Financial Services and see it really is the dark horse of the finance industry.

Note this review, interest rates and product information are correct as at  7th February 2019 and all of this information is subject to change without any further notification. Any applications for credit are subject to meeting the specific bank’s criteria and the decision is at their final discretion.

advantedge review

 

What are Advantedge Home Loans like?

The top 5 things Advantedge are good at:

  • ✅ It works closely with Mortgage brokers– Advantedge has built up its business model through acting as a wholesale funder for mortgage brokers. So if you’re considering working with a mortgage broker (chat to us!), then it is a great option to consider.
  • ✅ Lower Interest Rates For Big Deposits – If you have a large deposit, then consider yourself #winning because Advantedge offers lower interest rates for those with a hefty deposit lined up, they price based on the LVR which can work out cheaper for some people.
  • ✅ Very competitively priced LMI –  They have one of the cheapest LMI prices in the market based on our test scenario below, and could save you a few thousand dollars if you have to pay LMI.
  • ✅ First Home Buyers and Investors – Advantedge is not a bad option for first home buyers and investors because it offers pretty competitive interest rates for P&I loans and some good options for interest-only repayments – but beware, they do not have very good transactional, or offset facility options.
  • Fully assessed pre approvals – Unlike some banks, and other lenders who do not give you a real pre approval, Advantedge will do a fully assessed approval. In other words, a credit manager will go through your information and verify you are pre-approved giving you more confidence.

 

The top 5 things Advantedge aren’t so good at:

  • ⛔ Complex loans & Bad Credit – If you have a particular circumstance that doesn’t meet standard bank policy, you may struggle to work with Advantedge as they have fairly rigid credit strategies. Also if you have a bad credit history, it could be difficult for you to get a home loan approval.
  • ⛔ Internet Banking – From all reports, and reviews the feedback has been Advantedge’s (and Connective Essential Home Loans) internet banking facility is really really basic, you only have access to their account via their system StarNet and you will struggle to make large transfers to and from this account.
  • ⛔ Branch Access – Another downside of Advantedge is that you won’t have access to a branch because they work through other banks. So if you enjoy waltzing into your branch with a whole list of questions, this one isn’t for you.
  • ⛔ The mortgage manager sets interest rates – Even though you’re lending through Advantedge, unfortunately, your chosen mortgage manager will have the final say on the interest rates. You’ll have to pay attention to the changes and fluctuations not by Advantedge, but through your mortgage manager.
  • No offset accounts – Being a Mortgage Manager, their home loan products are a little restricted compared to many other banks. With this being the case you have a really basic internet banking facility, no offset account and only have a redraw facility. This might not work for everyone.

 

What are the different home loan products they offer?

Advantedge provides a range of home loan products all marketed under different names. You’ll find Variable, Fixed and Combo product. They seem to have removed the low doc and non-resident options a little while ago.

The slightly confusing thing is that Advantedge uses a bunch of different brands, but the product in the background is the same.

It is also called the following, but in all cases, they offer the same variable, fixed and combo products.

Connective Home Loans Advantedge Products

Read More: 10 [simple] Tips for Choosing the Best Home Loan in Brisbane ✅ ✅ ✅

 

What are Advantedge’s Interest Rates?

Advantedge isn’t directly in control of the end interest rates set for its clients, and it relies on the mortgage manager to set the rates instead.

It’s essential from a borrower’s perspective to shop around and search for the best rate available. Also speak to Hunter Galloway about this, as we can do it for you.

For the remainder of this review, we are referring to the Connective Essential’s Home Loan, which is funded by Advantedge. 

advantedge interest rates

Different brands have different interest rates, we are referring to Connective Essential Home Loan’s Advantedge product, interest rates correct as at 8th February 2019 and subject to change without any further notification.

advantedge interest rates owner occ

Now, here’s the thing, Advantedge do have a business delivery rate that they give to mortgage managers. However, this rate is entirely at the mortgage managers discretion. So they do not necessarily need to follow it.

advantedge home loans

With Advantedge, different brands have different interest rates. So Connective’s Essentials home loan rate will be different to AFG, to Loan Market, etc.

Read More: 16 [easy] tips to Find the Best Mortgage Broker

 

What documents does Advantedge need for a home loan?

Advantedge’s application checklist is fairly standard compared to most banks and assuming you are a salaried employee and you are purchasing your first home they would ask for the following documents. You can check out Advantedge’s application form which also includes the document checklist on page 2.

If PAYG:

  • ☑️ Two of the three most recent computer generated payslips, and at least ONE of the following:
  • ☑️ 3 months personal bank statements from a financial institution showing regular salary credit
  • ☑️ Australian PAYG Payment Summary for the most recent financial year
  • ☑️ ATO tax return for the most recent financial year
  • ☑️ Current employment contract OR letter from employer
  • ☑️ 100 point identification form and copies of supporting documents
  • ☑️ Verification of any rental income or other income

Advantedge home loan forms (1)

Plus if self-employed:

  • ☑️ ATO Tax Returns and ATO Tax Assessment Notices for the last two financial years for both individuals, business entities, companies or trusts including balance sheet and profit and loss statements

And for companies and trusts:

  • ☑️ ATO Tax Returns and ATO Tax Assessment Notices for the last two financial years including balance sheet and profit and loss statements
  • ☑️ ATO Tax Returns and ATO Tax Assessment Notices for directors/guarantors for the last two financial years

Read More: Home Loan Process [Step-by-step guide] 

 

How much can I borrow from Advantedge?

Advantedge’s credit criteria are subject to change at any time, and all lending is up to credit verification and satisfactory approval but as an indication, we have run the following scenario through their borrowing calculator:

  • ✅ A single person living in Brisbane (In the 4000 postcodes)
  • ✅ Earning $70,000 PAYG salary income
  • ✅ Average monthly expenses of $2,000
  • ✅ Has a credit card of $5,000 and no other debts
  • ✅ Assuming this person has a 20% deposit and genuine savings
  • Figures as at 7 February 2019, subject to credit criteria and will change without notification.

We run the figures through our serviceability calculator and got the following results:

advantedge calculator

The results above show Advantedge is at the upper end of borrowing capacity when compared to the list of other lenders and is around $30,000 lower than the lowest with a maximum borrowing capacity of up to $348,150.

In other words, if the same person applied with Advantedge versus the lender at the top, the maximum amount Advantedge would lend that person is $348,150 – compared to the bank at the top who would lend up to $318,100.

These figures are indicative and would be subject to meeting credit criteria, valuation and satisfactory verification of all supporting documentation. They are accurate as at 8 February 2019 and subject to change without any further notification.

Would you like to know your borrowing capacity? Chat with our home loan experts to see what you can afford.

chat-to-mortgage-expert

 

How much does LMI cost with Advantedge?

Lenders Mortgage Insurance is much cheaper with Advantedge compared to other lenders in the market.

Read More: Try and calculate your LMI Costs using our LMI Calculator.

Advantedge LMI Costs

 

What are some Advantedge Customer Reviews?

As mentioned before, Advantedge used to trade as Challenger, so its previous customer reviews are still under this name.

advantedge rating

Customers overall satisfaction rate is at 46%, which isn’t a winning option compared to other competitors. Convenience was what brought its score down, which is the apparent reason due to its unique structure…

Unfortunately, it looks like their score has dropped a fair amount since then, with not a lot of positive reviews out there for Advantedge.

Advantedge_Reviews

If I’m honest, Advantedge is not for everyone due to some of the inconveniences involved in setting up your loan and being managed by a separate brand. However, there are some types of loans that would benefit from working with Advantedge, like as we said, those with a big deposit.

Mortgage Broker Brisbane

 

Who is Advantedge best for?

Advantedge is ok for those who are working with a mortgage broker and have had a chance to compare all the options amongst lenders.

They seem to have an alright product for a ‘set and forget’ type loan, that you don’t want internet banking and offset access to.

If you’re going out on your own and trying to work with Advantedge, I wouldn’t recommend them, as you will need to do a lot of research and hard work to figure out which mortgage manager has the best interest rate for you.

Things to Consider

Remember that while Advantedge sets a recommended interest rate, this rate is discretionary to the mortgage manager, so always confirm the rate with your chosen brand before you go ahead.

 

How does Advantedge compare to other banks?

Overall each Bank, and Credit Union has its own advantages and disadvantages which will come down to your personal situation.

Mortgage Broker Brisbane

The Hunter Galloway Mortgage Broker Brisbane team is here to help. We have a team of home loan experts.

So does Advantedge sound like it’s for you? Speak to our team of mortgage brokers for a free consultation to figure out which home loan option is best for you.

Talk to one of our mortgage brokers calling us on 1300 088 065 or complete our free assessment to find out more details and see if they are a good fit for you.