1.4% discounted variable rate

[SOP]

Anyone on this forum achieve a 1.3%-1.4% discount off their standard variable rate?

http://www.propertyobserver.com.au/...pting-for-variable-rates-mortgage-choice.html

 

[Jamie M]

Nope. Not common.

Would have to be a massive loan coupled with a low LVR

Cheers

Jamie

 

[r3ckless]

I had for one of my clients today, not the best rate but decent 1.16% off CBA. LVR was 75%, loan size was $2.1M

 

[Rolf Latham]

110 to 120 pts yes

140 pts not here

equates 4.4 to 4.5 variable.........

ta
rolf

 

[peaches]

Recently got 1.30 on a $3million single security 80% LVR

 

[Terry_w]

I just got someone a 1.35% discount with one of the majors S...

 

[Mick C]

Anyone on this forum achieve a 1.3%-1.4% discount off their standard variable rate?

http://www.propertyobserver.com.au/...pting-for-variable-rates-mortgage-choice.html

A bit misleading...as this depends on the lender...as Citibank is offering 1.35% discount but their SVR is quite high...so after the 1.35% discount the "delivery" rate is still 4.83% or there abouts roughly....

But say someone like ING who offers something like a 0.51% discount their SVR is very low to start off with and their "delivery" rate is also 4.83%.

 

[Mick C]

1.3-1.4% off a MAJOR is impressive tho....but i have never seen a 1.4% off a major. ( that's like a delivery rate of ~4.48% )

 

[Richard Feynman]

I just got someone a 1.35% discount with one of the majors S...

Borrowings and LVR?

 

[Bantam Roosta]

A bit misleading...as this depends on the lender...as Citibank is offering 1.35% discount but their SVR is quite high...so after the 1.35% discount the "delivery" rate is still 4.83% or there abouts roughly....

But say someone like ING who offers something like a 0.51% discount their SVR is very low to start off with and their "delivery" rate is also 4.83%.

Mick, can you expand on the 'delivery' rate? I haven't heard of this before and don't quite understand.

BR

 

[Terry_w]

Borrowings and LVR?

80% LVR. Total just over $2,300,000
4.64%

 

[Richard Feynman]

80% LVR. Total just over $2,300,000
4.64%

Reckon you'd have got the same rate under $2mil?

 

[Peter_Tersteeg]

Mick, can you expand on the 'delivery' rate? I haven't heard of this before and don't quite understand.

BR

Delivery rate is the the rate after the discount is applied. It's nice to have a 1.4% discount, but if the reference rate is 7.0%, then the delivery rate is 5.6% and the discount is no longer very good.

 

[Terry_w]

Reckon you'd have got the same rate under $2mil?

Probably not. 1.25 maybe.
But it all depends on the day or the week and the person giving the discount.

 

[Rolf Latham]

80% LVR. Total just over $2,300,000
4.64%

I smell a dragon


concentration risk not a concern ?


if thats a 5th of the portfolio not a prob, but somtimes I find the finance risk gets overshadowed with some borrowers wanting to trade of 20 pts for their financial "lifeline"

ta

rolf

 

[Terry_w]

I smell a dragon


concentration risk not a concern ?


if thats a 5th of the portfolio not a prob, but somtimes I find the finance risk gets overshadowed with some borrowers wanting to trade of 20 pts for their financial "lifeline"

ta

rolf

Indeed, that is a risk to be concerned about

 

[Rolf Latham]

Indeed, that is a risk to be concerned about

However, im also guessing where you live and practice, that would be the average loan size, and so therefore you cant chunk up a 3 mill PPOR

ta
rolf

 

[Marty McDonald]

The biggest of the big 4 ...
Tuesday.
New to bank.
1.2% off for net rate 4.70%.
$1,495,000
80% LVR's
2 securities, stand alone

 

[Bantam Roosta]

Delivery rate is the the rate after the discount is applied. It's nice to have a 1.4% discount, but if the reference rate is 7.0%, then the delivery rate is 5.6% and the discount is no longer very good.

Duh... Thanks.

BR

 

[Brady]

The biggest of the big 4 ...
Tuesday.
New to bank.
1.2% off for net rate 4.70%.
$1,495,000
80% LVR's
2 securities, stand alone

Quiet common at the moment, pushing out massive discounts.

Done 1.2% last week few times >$1M <80%

Also 1.11% >$750k <90%