ANZ rate announcement

It's the second Friday of the month and ANZ have made their rate announcement.

They're passing on a rate cut of 0.37% on residential mortgages. Here's a link to their announcements. Their standard variable rate will now become 7.05%.


As a summary of what various lenders have passed on from the RBA's 0.50% cut (this is obviously not a comprehensive list):

Lender Change New SVR
________________________________________
ANZ -.37% 7.05%
BOM -.41% 6.99%
CBA -.40% 7.01%
ING -.30% 7.02%
NAB -.32% 6.99%
Westpac -.40% 7.06%

Most of the new rates become effective next Monday so more comprehensive data will become available then. Fixed rates also tend to be dropping at the moment. They're changing so quickly it's hard to keep up right now.

Keep in mind that the figures above are essentially rubbish. Comparing a standard variable rate is useless because each of the above lenders have various discounted loans and professional packages significantly lower than their SVR.

Discounts are also offered based on the total loan amount and the LVR. Additional discounts are also granted depending on the applicant and the deal. It's completely impractical to try create a comprehensive list for borrowers to try figure it out.

Generally speaking, I feel that the cheapest deal from lenders is primarily about the size of the discount that can be obtained. Please note that 'cheapest' does not necessarily mean 'best' or 'most apporpirate'. Different borrower requriements will influence this.

A lender advertising the lowest SVR is really blowing smoke, because next month it could change. It's also meaningless if they're only offering small discounts when compared to their compeditor. A loan with a large discount margin is more likely to be cheaper in the long run than a lender offering little more than a low rate today.

The outlook is also looking confusing for borrowers. On one had there's predictions of additional rate cuts in the next 12 months due to various global uncertainty factors. On the flip side, unemployment figures are particuarly low this week, suggesting that the RBA may have been premiture to drop rates by so much last week. In the absence of additional indicators either way, I think the RBA will sit still for a while whilst they try to determine what the net effect of all this data is, and what's the eventual result of what they've already done.
 
Taking that ANZ raised thier interest rate twice within the last few months to compensate for 'borrowing costs', it's **** poor that try are only offering .37% discount on thier SVR. I thought since they have made up for thier costs with previous increases, they would deliver close to the full 50 basis points.

Also, taking the average $300,000 loan, ANZ provides the lowest discount of 0.6% thus making thier effect rate about 6.44% (which I think is the highest among the big banks).
 
I agree the ANZ response is pretty average in light of their recent increase.

For what it's worth, you should be getting at least a 0.7% discount at ANZ with $300k borrowed. It should be possible to negotiate a 0.8% discount.
 
So what will be the variable rate of the Breakfree package now for loans less than 80% LVR and more than $500k and less than $500k?
 
I agree the ANZ response is pretty average in light of their recent increase.

For what it's worth, you should be getting at least a 0.7% discount at ANZ with $300k borrowed. It should be possible to negotiate a 0.8% discount.

I'm with CBA and getting 0.75%. Too afraid to go with ANZ since they decided to cut loose from the RBA.
 
As a summary of what various lenders have passed on from the RBA's 0.50% cut (this is obviously not a comprehensive list):

Lender Change New SVR
________________________________________
ANZ -.37% 7.05%
BOM -.41% 6.99%
CBA -.40% 7.01%
ING -.30% 7.02%
NAB -.32% 6.99%
Westpac -.40% 7.06%

Not wanting to be too picky but as a WBC customer I think you will find they only went down by 37 basis point to a new SVR of 7.09%. Yes they are still the highest of the big4 :(:(:( but lucky they are happy to negoitiate so I get 0.90% discount so it gets back to a competitive rate:D

http://www.heraldsun.com.au/news/mo...for-rates-relief/story-fn7x8me2-1226345245482
 
what sort of discounts to brokers and bank staff get.....or do you prefer to keep that a secret

Depends which bank you are with:
Westpac/St George - basically the same rates, but can get 90% LVR with no LMI which is really handy, also no fees
CBA - No benefit of being on staff, really crap.

Would be interested to hear for the others.

They used to have amazing staff discounts, but with fringe benefits taxes, they couldn't keep them going. Typical government intervention, where they tax something so much that there is now no tax coming back to them, as it doesn't make sense to offer it any more.

Westpac / St George do have great staff deals for credit cards and personal loans - both at 9% interest.
 
Depends which bank you are with:
Westpac/St George - basically the same rates, but can get 90% LVR with no LMI which is really handy, also no fees
CBA - No benefit of being on staff, really crap.

Would be interested to hear for the others.

They used to have amazing staff discounts, but with fringe benefits taxes, they couldn't keep them going. Typical government intervention, where they tax something so much that there is now no tax coming back to them, as it doesn't make sense to offer it any more.

Westpac / St George do have great staff deals for credit cards and personal loans - both at 9% interest.

if i were a broker giving business to a bank id expect the top under counter discount + no pkg fees etc.

do you work at a bank to know those discounts? or lack there of?
 
I managed a 1% discount and now pay 6.01%.... Strategy: grab the latest money mag and towards the back see who have the 3 lowest rates according to cannex or do some other research. Either way make sure you're informed enough to mention competitive names not the big 4 but don't mention rates!

Ring your lender and explain that you have considered refinancing and mention the names of 2 of the lenders have come back with an offer significantly below what you are currently paying. They will ask you what they offered. Of course don't tell them just say you're going to go with the best offer. They know each others rates and at what point it is worth them keeping your business. It may take a bit of going back and forth. Generally you don't get a decision maker on the phone, they have to go higher up.
 
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