A little surprise from St George

[sydsider]

Thought I would share this with all of you:

I walked into a St George branch today inquiring about pre-approval for a new loan and the loan officer gave me 1% off the standard variable rate just like that. I was a bit shocked to be honest. I asked if she can give me the same discount on my existing loans she said she'll work on that. Fingers crossed.

The new borrowing will take me just above 1 million in borrowing. I remember reading a very popular thread here on rate discounts ppl were getting and from what I recall some ppl with bigger loans than me were only getting 0.9x discount.

I realise you can find better rates than what St George is offering from a smaller lender and I will look into them. I just didn't expect St George to be so 'generous'. Unless this is the new norm that I didn't know about?

I heard Westpec is the least negotiable of the big fours and I expected St George to be the same.

Anyone got a comment or experienced similar things?

 

[Aaron_C]

haha that's because their standard variable is really high.....it's just a gimmick sydsider

 

[Jamie M]

I heard Westpec is the least negotiable of the big fours and I expected St George to be the same.

Hi Syd

We sent off an email to the pricing guys at WBC the other morning requesting a 1.06% of the SVR for an existing client (we were doing a little top-up). Total borrowings was about $750k - they agreed to it.

In today's climate - a 1% discount off the SVR is common for anything greater than $500k (which includes total borrowings). If the LVR is higher than 80% then the discount is a little less.

Cheers

Jamie

 

[delfredo]

It's a norm. Go to Suncorp and you'll get 1% off for life (effectively 6.8% at today's SVR) for LVR up to 80%. Minimum loan value $250K only. Annual package fee applies. By the way, this is publicly advertised, not through special negotiation.

 

[Mick C]

0.9-1% has become the norm theses days especially for larger loans and LVR under 80%.

either way St George is not the easiest to negotiate, so good work!
Normally the banks applies a one discount policy, meaning what ever discount your getting on one loan will apply to the another.

Regards
Michael

 

[jonmardell]

best to look at the end rate and not the % discount. for loans above 1 million 6.8% would be a worst case scenario you should be getting better assuming your LVR is below 80% and you can service the debt!

 

[Mick C]

Sorry to disagree Jon, but i would say discount is a lot more imporant as long as your end result is not to far off.

SVR changes from bank to bank depending on their market position/outlook; just look at CBA went up 0.45% in SVR just like that; nothing stopping NAB,ANZ, Westpac and any another bank from doing the same....currently NAB offers the lowest SVR but this has not historically been the case all the time, there have been time when the SVR was the same across all the banks

Regards
Michael

 

[softmonkey]

Competition is simply forcing the banks to start chewing back into the fat margin they opened up over the cash rate over the last few years.

I'm convinced the RBA is aware of these movements and that is one reason why they did not cut the official rate - because the market to a certain extent is adjusting itself.

 

[Mike F]

I am with westpac. My home loan manager is refusing to budge on my current discount of .9 (6.96%) variable.
What is my best option to get that rate to 6.8%? Call the home loan retention call centre? or a 'bank manager' in a branch?

Loans of over $1m at less than 80% LVR.

 

[Mick C]

I am with westpac. My home loan manager is refusing to budge on my current discount of .9 (6.96%) variable.
What is my best option to get that rate to 6.8%? Call the home loan retention call centre? or a 'bank manager' in a branch?

Loans of over $1m at less than 80% LVR.

Call the discharge team ( retention team) - ask for a pay out figure.

Regards
Michael

 

[Dan_p]

I am with westpac. My home loan manager is refusing to budge on my current discount of .9 (6.96%) variable.
What is my best option to get that rate to 6.8%? Call the home loan retention call centre? or a 'bank manager' in a branch?

Loans of over $1m at less than 80% LVR.

I spoke to the retention team at anz, told them i had a pretty good offer with nab. They called me back in a few days offering 1% off the standard variable for the life of the loans. Total debt is about $950k

 

[Jamie M]

I am with westpac. My home loan manager is refusing to budge on my current discount of .9 (6.96%) variable.
What is my best option to get that rate to 6.8%? Call the home loan retention call centre? or a 'bank manager' in a branch?

Loans of over $1m at less than 80% LVR.

Hi Mike

Tell them that ANZ will give you at least 1% off their SVR (taking it down to 6.8%) and will be rebate $1k for each loan that you refi to them. You need to provide a comparison - it shows that you've been shopping.

Good luck.

Jamie

 

[Mike F]

Hi Mike

Tell them that ANZ will give you at least 1% off their SVR (taking it down to 6.8%) and will be rebate $1k for each loan that you refi to them. You need to provide a comparison - it shows that you've been shopping.

Good luck.

Jamie

I did that with a link to the advertised anz deal. The westpac guy said 'we can't go lowering our customers rate every time there is a special deal by the competition', and that they offer good service.
My response was, 'why not?'

 

[Deltaberry]

Good service? Like they smile at you? Hah!

 

[Jamie M]

I did that with a link to the advertised anz deal. The westpac guy said 'we can't go lowering our customers rate every time there is a special deal by the competition', and that they offer good service.
My response was, 'why not?'

That's quite frustrating. As mentioned above, we secured the 1.06% discount for a client who's borrowing was less than yours.

You might just be dealing with a difficult branchie - call the retention team, tell them you're leaving and that you just wanted to give them the chance to match before you jumped ship. If they don't do it - then maybe you should weigh up your options. Most of the current lender specials are being offered until 30 Sept.

Cheers

Jamie

 

[Dan_p]

I did that with a link to the advertised anz deal. The westpac guy said 'we can't go lowering our customers rate every time there is a special deal by the competition', and that they offer good service.
My response was, 'why not?'

They will have no service when you take up the ANZ offer.

It sounds like he was treating you with contempt.

 

[Alex P Keaton]

Cross col $470 k total loan - Discount?

Hi

Do you think I would have a chance at getting an IR SV discount? I have my PPOR cross col with my IP. The loan totals $470 k and is with Anz. The LVR is currently between 75 - 80%. Also I'm wondering if now would be a goodtime to make these stand alone loans... leave to go to another bank or uncross and stick with ANZ?

 

[Aaron_C]

If you are in a position to uncross, then UNCROSS

 

[Alex P Keaton]

Yeah I'll be looking into it soon!

 

[Mike F]

That's quite frustrating. As mentioned above, we secured the 1.06% discount for a client who's borrowing was less than yours.

You might just be dealing with a difficult branchie - call the retention team, tell them you're leaving and that you just wanted to give them the chance to match before you jumped ship. If they don't do it - then maybe you should weigh up your options. Most of the current lender specials are being offered until 30 Sept.

I have now been talking to the retention team (several times). They will do 1% off, down to 6.86, will will not go any further. I have told them will be taking all of my loans, accounts, credit cards, and 4 insurance products unless they match the ANZ advertised rate (6.8%). They are not interested in going any further, saying they can match the discount, but not the actual rate.

Now considering what I will do, it is a hassle to move, but I feel like doing it now, as they deserve it!