0.2% reduction by NAB, may not be passed on to Homeside customers

[MC1]

a number of customers looking at refinancing perhaps. I have already started the process on a few loans that I have with them.

 

[Nth Brisbanite]

a number of customers looking at refinancing perhaps. I have already started the process on a few loans that I have with them.

When was this reduction given by NAB? Is this the old one give about 2 months ago or is this one given on top of the recent 0.62%

 

[Spectre]

Hmmm

More to this than focusing on rate.

nab's reduction of .62 is effective 14/11/08

So their normal variable is circa 7.27 with the 'discounts'

look at leaving and you have 1500 in fees to pay in the first 4 years.

So say on 400k and against westpac at 7.01 theres about 64 per month difference in interest

Annually - 62 x 12 = 768

So roughly 2 years before you come ahead by leaving em on the interest vs fees - on the surface.

But... that doesnt take into account the 395 a year propack fee westpac charges which would put you over the 2 year mark, or govt fees to release, or lmi if there's a low doc involved which you're paying again... (and if low docing the last two 'decent' discounters on rate now are homeside and westpac and even that space will be closing off soon enough).

So your real cost in leaving inside the first 4 years is 1500 (nab)+395 (new propack fee - if applicable) +@200 in govt = 2095.

Which then blows out figures more.
(god hoping my math is right too!)

Just make sure its worth your while thats all...

If full doc, over 4 years - then yeah youre ahead year 1

 

[Charlton Burton]

“0.2% reduction by NAB, may not be passed on to Homeside customers”
What was your info source for this? I can’t find confirmation that they won't be passing on to Homeside.

“When was this reduction given by NAB? Is this the old one give about 2 months ago or is this one given on top of the recent 0.62%”

The 0.2% was after the RBA drop of 1% on 7 Oct 08. NAB responded by dropping 0.8% on 7 Oct and then further 0.2% on 19 Oct.

I am a Homeside customer too and we only just received 0.8% cut on 31 Oct (24 days after announcement). Is that a normal length of time to be passed on or are they having a good laugh at our expense? Had loan with Homeside for 2 years so those break fees look nasty. Will check the fine print.

 

[Charlton Burton]

Just checked mortgage docs - Early Exit fee on Homeside under 4 years is $1530. Interest rate for Homeside Homeplus will be 7.27% once they get around to passing on the .62% from 5 November. That's assuming the 0.2% will not be passed on.

 

[MC1]

Had a chat to a homeside employee who advised there is a good chance that the rate won't be passed on.

 

[Spectre]

MC1
This is a bulletin from nab homeside - cut and paste - hope it helps...

'Last week NAB announced a reduction to its standard variable home loan interest rate to 0.62% effective 14 November 2008.

Today we are announcing a reduction of 0.62% p.a. to all Homeside variable rate home loan products effective 14 November 2008.'

Have you discussed this with your broker who set it up to begin with?

 

[Saint]

what a con

Have you discussed this with your broker who set it up to begin with?

lukentel

Review of MC1s posts show they appear to be a broker themselves.

they're out to try to knock up some business so things must be slow

Or they are kept out of the loop and behind the times by a week which isnt a broker I would be dealing with

 

[MC1]

Saint,

you might want to pull your head out of your as*.

I was merely bringing up the point for any forumites who may have lending with Homeside.

We definitely don't need to drum up business on a forum. You would have noticed that we have never mentioned our business name.

And for your info, the 0.2% reduction was announced by NAB prior to the 0.62% drop.

Lukentel was very accurate with his post regarding figures. But obviously I had already calculated my own numbers. Being a broker.

I'm sure his posts will benefit a lot of people on here that may have a loan with Homeside.

So saint, before you come on here and flex your muscles, do a little research first. It may save you next time from sounding like a fool.

We are definitely in the loop, but you are obviously not.

Goose

 

[Spectre]

Settle guys... build a bridge.

To set the record straight (and for our viewing public) nab announced the reductions on 13/11 - well I got an email anyway which advised it at 12.17pm - and the original post for this thread is dated 15/11.

To be fair, I must admit I was a bit confused as well - hopefully this clears things up