Best discount from commonwealth bank 0.94 off variable rate

Hi, I have a loan of 785,000 with NAB with LVR around 60%. I am currently getting 6.87% with NAB. CBA is saying they will match the rate of 6.87% which would be 0.94 less than their variable rate. I don't know whether i would be able to get a better deal with CBA or anyone else? Any suggestions. I am thinking of buying another IP after moving my finances with CBA. Any suggestions?
 
Hi

If 785 is your total lending exposure, take the 6.87 and use a new lender for the next place.

U might get another .1 for selling your flexibility.

Diverisifying has a cost, you know approximately what that cost is.

Lumping it all on black with the one lender has costs too...........only those costs you may not know yet.


ta
rolf
 
Thanks for the response Rolf but I am finding it hard to understand.

I am already getting 6.87% with NAB which will be matched by CBA. I find service provided by NAB is very bad. That is the reason I am thinking to move to CBA as they will be matching the rate plus giving around $1500 which i believe will be lesser than the cost of the move as NAB i believe as removed exit fees.

For me, the main reason I want to move to CBA is because I want to buy an IP very soon but it's very difficult to get contact with NAB banker & all my equity is with NAB (have got total of 3 properties now with LVR of 60% with loan amount of 785000)

Problem of keeping my existing loan with NAB and buying new property with new lender is that if I get the new property with same lender, I would have some equity & I will not have to forke insurance. Being not an expert in property investing, I fail to understand what value I would get if I buy new property with new lender.
 
I find service provided by NAB is very bad. That is the reason I am thinking to move to CBA as they will be matching the rate plus giving around $1500 which i believe will be lesser than the cost of the move as NAB i believe as removed exit fees.

All banks are the same. It sounds to me like your personal banker is the problem.

Changing personal bankers is easy with NAB. Simply go into a different branch, make an appointment to speak to the personal banker and if you are satisfied with the meeting then request a change of banker with them.

I don't see any point in changing banks to get the same rate.

I do agree with Rolf that it is a great idea to diversify lending.

Rooster
 
Thanks Rooster for the suggestion. I tried doing it when I went to another branch BUT the branch manager told me that NAB works in branches and my loan papers are in a different branch and she wanted me to go to that branch which I wasn't happy again. She was bit reluctant to process loans in her branch. This is compounding the problem and I am thinking whether whether I should change the bank itself. Any suggestion regarding a good NAB bank manager in melbourne preferably city or a mobile banker who can help me?

Regarding both Rooster & Rolf's suggestion, I still don't understand the advantages of diversifying my finances - what the advantages are. Actually I see disadvantages for me as all my assets are already with one bank NAB at the moment with LVR 60%. If I use the same bank, I presume I would be able to get loan with minimal deposit increasing the LVR.
 
Thanks for the response Rolf but I am finding it hard to understand.

I am already getting 6.87% with NAB which will be matched by CBA. I find service provided by NAB is very bad. That is the reason I am thinking to move to CBA as they will be matching the rate plus giving around $1500 which i believe will be lesser than the cost of the move as NAB i believe as removed exit fees.

For me, the main reason I want to move to CBA is because I want to buy an IP very soon but it's very difficult to get contact with NAB banker & all my equity is with NAB (have got total of 3 properties now with LVR of 60% with loan amount of 785000)

Problem of keeping my existing loan with NAB and buying new property with new lender is that if I get the new property with same lender, I would have some equity & I will not have to forke insurance. Being not an expert in property investing, I fail to understand what value I would get if I buy new property with new lender.

Too many answers needed here

Id recommend you sit and have a loooong chat with a broker to see how .....


1. your service challenges can be overcome right now and forever eliminated
2. your financial future may be made more predictable
3. you can access the equity of your current properties AND use a different lender and not have to pay mortgage insurance.
4. etc


Often, moving all your stuff from one lender to another will not fix the service problem and its for the following reason


There arent any "good" banks, there are only "good" people.


When the good people move on, you are stuck with "the bank", and thats possibly right where you are now ?

ta
rolf
 
You are correct Rolf. I should probably discuss with a broker first. Any one good in melbourne that you'd recommend or does it make a different if it is interstate as well? How does a payment to broker work?
 
Hi

There are a bunch of great guys and girls that post here that are located in melbourne...........though depending on your mindset, a broker doesnt have to be on the same town or country even.


Just some with no preference in the order, pls use the search fn to find contact details

Jane Slack Smith , used to be Sydney slicker,now Mexican

bradsdad aka Steve

Kristine

PT Bear



ta
rolf
 
Regarding both Rooster & Rolf's suggestion, I still don't understand the advantages of diversifying my finances - what the advantages are.

I'm certainly no expert on finance. but i believe their view is that if you have all your lending with one bank and try to go for another loan they will say that you have reached their ceiling of comfort (say 1m total lendings), so regardless of your serviceability you will be knocked back.

is that correct brokers?
 
Hi, I have a loan of 785,000 with NAB with LVR around 60%. I am currently getting 6.87% with NAB. CBA is saying they will match the rate of 6.87% which would be 0.94 less than their variable rate. I don't know whether i would be able to get a better deal with CBA or anyone else? Any suggestions. I am thinking of buying another IP after moving my finances with CBA. Any suggestions?

Purely on rate alone, I would say refinance.

Ok, the rates are equal now but its reasonable to expect that over the medium term that standard variable rates will come into line with each-other again - as they used to be for decades. When they do, you'll be left with a 0.94% discount for $785k which is excellent.
 
Regarding both Rooster & Rolf's suggestion, I still don't understand the advantages of diversifying my finances - what the advantages are. Actually I see disadvantages for me as all my assets are already with one bank NAB at the moment with LVR 60%. If I use the same bank, I presume I would be able to get loan with minimal deposit increasing the LVR.

By diversifying lenders you don't come to a point where your one and only bank pulls the floor from under you. It's not a nice feeling to be right the way through a deal and have your only lender turn around and say "No more!!".

It happened to me and almost collpased the deal.

You end being left in a situation where you haven't established a relationship with another lender and can be left out in the cold.

So my suggestion, and that's all it is, is to take a line of credit out with NAB to extend your LVR with them to 80%, and then take those funds as a deposit and source finance with a different lender.

It gives you more options down the track when you can play both lenders off against each other. This helps with interest rate negotiations, package discounts and different lending products.

Don't tie yourself down to something that seems easier now, yet will bring constraints in the future.

Cheers

Rooster
 
Thanks all for the responses. I have learnt quite a few things with this post from all of you & also from the link that Perp has directed me too. At this stage Rooster's suggestion might be best for me to get LVR to around 80% with NAB or any other bank & then diversify the other loans after that. Immediately I will try to get either a different NAB banker which would hopefully be better. Any recommendation on a good NAB banker hopefully in melbourne?? Other option is to refinance with CBA & hope that the banker would be better. Thanks again to all!!!
 
at the obvious risk of repeating myself....which is what happens when you cut and past

There arent any "good" banks, there are only "good" people.


When the good people move on, you are stuck with "the bank", and thats possibly right where you are now ?



ta
rolf
 
NAB are known for there bad customer serivice. I have a friend that is looking at a loan and is probably going to go with the bank which he'll pay higher interest rate than NAB because of NAB's bad service.

Trust me when I tell you this guy is the biggest tight **** in the world. He managed to pay a year of full fees of uni, pay his HECS debt while studying and had over 200k saved when he graduated and he was only working 5 hours a week and getting youth allowance, and rented. If this guy is willing to pay more in interest than go with NAB, then the NAB have a huge problem with there customer service.
 
NAB are known for there bad customer serivice. I have a friend that is looking at a loan and is probably going to go with the bank which he'll pay higher interest rate than NAB because of NAB's bad service.

Trust me when I tell you this guy is the biggest tight **** in the world. He managed to pay a year of full fees of uni, pay his HECS debt while studying and had over 200k saved when he graduated and he was only working 5 hours a week and getting youth allowance, and rented. If this guy is willing to pay more in interest than go with NAB, then the NAB have a huge problem with there customer service.

Yep I would agree with that absolutely apalling service at NAB , after waiting on phone for hours, going round and round in circles trying to find the right person to talk to, no-body knew any-thing. Waiting for return calls. After a couple of weeks getting no-where went to a broker. Got great rate at westpac but also crap service. so even tho it cost a lot a lot of money to set up at westpac, I think I will go back to St george and have all my loans with the one bank, even tho I did hit the wall with them but now I dont intend to push the limits any-more.
 
Thanks for the response Rolf but I am finding it hard to understand.

I am already getting 6.87% with NAB which will be matched by CBA. I find service provided by NAB is very bad. That is the reason I am thinking to move to CBA as they will be matching the rate plus giving around $1500 which i believe will be lesser than the cost of the move as NAB i believe as removed exit fees.

For me, the main reason I want to move to CBA is because I want to buy an IP very soon but it's very difficult to get contact with NAB banker & all my equity is with NAB (have got total of 3 properties now with LVR of 60% with loan amount of 785000)

Problem of keeping my existing loan with NAB and buying new property with new lender is that if I get the new property with same lender, I would have some equity & I will not have to forke insurance. Being not an expert in property investing, I fail to understand what value I would get if I buy new property with new lender.



Hmmmmmmmm Moving to CBA for better service levels. That's a new one to me. I'm sure with a phone call or 2 you would find yourself with someone new at the NAB.
 
Not completely related to this thread, but I opened a new everyday account with NAB about a month ago.

Dramas with the visa debit cards not arriving, dramas with setting up Internet banking, many many phone calls to their customer service departments getting disconnected.

I won't be getting any more accounts with them any time soon.
 
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