Best discount from commonwealth bank 0.94 off variable rate

[euro73]

Bank marigins are the highest they have ever been not sure if locking in that margin in for the next 5 years is a wise move (effectively what you are doing with loans.com).

Not sure what bank margins have to do with it Sparticus???

The banks have made it pretty clear they see continued upward pressure on their funding costs... so I dont see them dropping their Standard Variable Rates anytime soon, if that's what you meant?

Is there a bank CEO in the land who hasnt continued to talk about increased funding costs ?

 

[Anh]

Good job Anh! Did you also speak to Paul, or someone else?

I tried for increase about 1 months ago, and only got .9% off on about $1.2m.... guess will be trying again on monday

Hi, I did not speak to Paul, i just rang the 132224 and chose Homeloan as option was redirected to a lady from the Retention team. I had to tell her that i am a loyal CBA customer and about to borrow more to invest plus i am looking at refinancing to AMP and NAB since Nab. I believe you will get 1% discount if you ring up. They are very responsive. Only took 2 days and the new rate is applicable within 24 hours. ( One point to tell them is that they are already offered new customer .95% discount anyway, so as existing customer with that much borrowing, they will).

Good luck.

Anne

 

[Nth Brisbanite]

Thank you Nrt Brisbaneite and Yorsie for sharing the info. I also got a discount from CBA of 1%, however they did not waive the first year fee. I am quite happy about.

Apparently with new offer you get .85% off standard var rate any way if you are on a Wealth Package.

I really enjoy reading the info on the forum. It really broadens my views on investing.

Thank you all for sharing.

Glad to be able to help you, Anh. I've got loans at other banks which are more than CBA's rate. I'll be quoting my new rate to see if I can get all my loans down to at least 6.81%. My AMP loans are 7.15%, Westpac is 7.06%, NAB 7.0%,

 

[Ridin-High]

Bank marigins are the highest they have ever been not sure if locking in that margin in for the next 5 years is a wise move (effectively what you are doing with loans.com).

this is false, NIMS have been up around 3% + they have actually been decreasing over the past 20yrs

 

[Nth Brisbanite]

I've got loans at other banks which are more than CBA's rate. I'll be quoting my new rate to see if I can get all my loans down to at least 6.81%. My AMP loans are 7.15%, Westpac is 7.06%, NAB 7.0%,

NAB came down to 6.95%. NAB will come down to at least 6.7% if I bring all my loans over to them. I feel that I could do even better than 6.7% if I pushed a little harder. AMP will not negotiate which is annoying so will refinance out of them as soon as possible. Haven't contacted Westpac yet.

I'd be interesting to know what CBA would offer if I brought more loans over to them. The majors seem to be very negotiable at the moment.

 

[Rolf Latham]

NAB came down to 6.95%. NAB will come down to at least 6.7% if I bring all my loans over to them. I feel that I could do even better than 6.7% if I pushed a little harder. AMP will not negotiate which is annoying so will refinance out of them as soon as possible. Haven't contacted Westpac yet.

I'd be interesting to know what CBA would offer if I brought more loans over to them. The majors seem to be very negotiable at the moment.

In all the savings focus be we should still be aware why we are where we are in regards of lenders at the moment.

We get this one ALL the time agglomeration attempts all the time...................sure you may pick up some extra 10or even 20 pts, and the convenience may be enticing too.

The problem is one believes u can determine the benefit of such a move, but its near impossible to determine what the cost may be ...................opportunity costs, lender risk exposures etc


ta
rolf

 

[Anh]

I would have to agree with Rolf. It is better not to have all your loans with the same lender, less bargaining power.

The next purchase won't be with CBA for me.

Nrt Brisbanite, i think if you push a bit harder, you might be able for get a bit more discount.

 

[Kanemicm]

Deal with the mobile banker of a bank

If you are going direct to the bank, I suggest you ask for a mobile banker, rather then using branch staff.

They generally sit next to credit management and are able to get max discounts or push your deal through.

Ask to speak to a banker after hours and the bank will refer you on to a mobile banker

 

[Nth Brisbanite]

I would have to agree with Rolf. It is better not to have all your loans with the same lender, less bargaining power.

The next purchase won't be with CBA for me.

Nrt Brisbanite, i think if you push a bit harder, you might be able for get a bit more discount.

Pushing harder with AMP didn't make an ounce of difference even when I mentioned CBA's rates. I'm getting my broker to negotiate for me

 

[virgo]

Rates

Hiya

My own experience with comparing for eg Westpac and CBA is that altho i pay a slightly higher rate for Westpac, when it comes time to top up loan and draw out funds for the next property, it was a breeze; i tried to top up a loan with CBA (and we are talking only 40K); i have to submit last 2 years tax assessement; rental statements, last 2 months bank statements; letter from Centrelink and by this stage; i gave up!



So, definitely, rates are not my main consideration; it may hamper your next IP purchase...

 

[euro73]

UBank - 6.59% Game, set and match?

 

[Rolf Latham]

UBank - 6.59% Game, set and match?

but golf doesnt have sets

ta
rolf

 

[euro73]

I should also mention - many of you seem to be forgetting that the lenders you keep mentioning. ie CBA and Westpac, have hiked rates outside RBA movements more than once in the last 2 years.
They are also the most exposed to offshore debt for their lending, and the ratings agencies are making it clear they believe Australia's banks are too exposed to offshore funding.
They are also facing increasing arrears on their loan books, because they have been guilty of discounting too heavily to win market share and writing too many high LVR loans. As rates increase(and they will)-expect to see CBA and Westpac's arrears accelerate.
They aren't in any trouble, but it will mean continued pressure on their costs of funds, and that will mean the distinct possibility that you will see your 85,90 and 95bpt discounts eroded pretty quickly.
Besides all that- the Australian market isn't growing anymore for them. There wont be any more mergers or acquisitions allowed, so they will not be able to continue to write heavily discounted mortgages without it having a negative affect on earnings, and therefore share price.
Just saying- they are far from the only game in town and there are much better deals around with smaller lenders who have lower LVR books, less dependency on offshore funding etc. In other words, the biggest banks face the most funding volatility. They are the most at risk of funding cost increases.
UBank is offering 6.59% at the moment-it is only available until the end of June. Sure, they are NAB owned and funded so you may ask why I dont comment on their funding costs- pretty much because NAB have the smallest loan book of the majors- by quite a distance. They have only got half the exposure to overseas funding that Westpac and CBA has, and they didnt write a truckload of high LVR business during the GFC like the two giants did. There's also the fact that with the UBank product there are no broker comms or trail to pay, so interestingly they'll be under the least pressure regarding funding costs. Its a pretty no frills product though.
If you want something with offset, bells, whistles, kitchen sink etc- with a 5 year RBA rate tracking guarantee- loans.com.au has a 6.85% product which drops to 6.75% after year 5.
Oh and both Ubank and loans.com.au have no fees.
Both deals seem a smarter bet than Westpac and CBA.

 

[sash]

I have been having fun playing the banks off each other.....

Have NAB willing to offer 6.67% for $1m in loans

Have the CBA looking to match it.....with 900k in loans.....

Aaahhhh....love it....but it does not come for free. I have been making a real pain in the Ar$e of myself.

 

[Ridin-High]

I have been having fun playing the banks off each other.....

Have NAB willing to offer 6.67% for $1m in loans

Have the CBA looking to match it.....with 900k in loans.....

Aaahhhh....love it....but it does not come for free. I have been making a real pain in the Ar$e of myself.

let us know how this goes

 

[Nth Brisbanite]

Just saying- they are far from the only game in town and there are much better deals around with smaller lenders who have lower LVR books, less dependency on offshore funding etc.
UBank is offering 6.59% at the moment-it is only available until the end of June. Sure, they are NAB owned and funded so you may ask why I dont comment on their funding costs- pretty much because NAB have the smallest loan book of the majors- by quite a distance. There's also the fact that with the UBank product there are no broker comms or trail to pay, so interestingly they'll be under the least pressure regarding funding costs. Its a pretty no frills product though.
If you want something with offset, bells, whistles, kitchen sink etc- with a 5 year RBA rate tracking guarantee- loans.com.au has a 6.85% product which drops to 6.75% after year 5.
Oh and both Ubank and loans.com.au have no fees.
Both deals seem a smarter bet than Westpac and CBA.

I've tried the small players ie Adelaide, AMP and ING etc and found that their deals are consistently worse than what I can from the big 4. They are generally not negotiable and their exit/entry fees can be a lot higher. I'm on 6.81% with CBA. It appears that others on this forum are getting down to 6.67% for a $1 million.

UBank is NAB anyway and loans.com.au is not as good as CBA

 

[Nth Brisbanite]

I have been having fun playing the banks off each other.....

Have NAB willing to offer 6.67% for $1m in loans

Have the CBA looking to match it.....with 900k in loans.....

Aaahhhh....love it....but it does not come for free. I have been making a real pain in the Ar$e of myself.

I got offered 6.7% with NAB but have to bring everything over (which I never will). I'll contact them to see whether I can bring just $1m over, not everything.

You don't need to be a pain in the Ar$? You can still be courteous without resorting to being aggressive.

 

[j0sh111]

I have been having fun playing the banks off each other.....

Have NAB willing to offer 6.67% for $1m in loans

Have the CBA looking to match it.....with 900k in loans.....

Aaahhhh....love it....but it does not come for free. I have been making a real pain in the Ar$e of myself.

So now we're talking a 1.14% discount off CBA's variable rate?
Is this through the retention team?

I thought a 1% discount was the best anyone had achieved from CBA?

 

[tom32]

UBank is offering 6.59% at the moment-it is only available until the end of June. Sure, they are NAB owned and funded so you may ask why I dont comment on their funding costs- pretty much because NAB have the smallest loan book of the majors- by quite a distance. They have only got half the exposure to overseas funding that Westpac and CBA has, and they didnt write a truckload of high LVR business during the GFC like the two giants did. There's also the fact that with the UBank product there are no broker comms or trail to pay, so interestingly they'll be under the least pressure regarding funding costs. Its a pretty no frills product though.
If you want something with offset, bells, whistles, kitchen sink etc- with a 5 year RBA rate tracking guarantee- loans.com.au has a 6.85% product which drops to 6.75% after year 5.
Oh and both Ubank and loans.com.au have no fees.
Both deals seem a smarter bet than Westpac and CBA.

Ubank doesnt have an offset account? That is about the only bell or whistle one needs in my opinion for PPOR then key is just the rate of interest.

I guess Ubanks deposit rate of 6.51% is so close to the loan rate of 6.59% (wow too close!) who needs an offset, when you can have a deposit and savings account and nearly break square anyway with an offset.

Edit: Oh No its NOT!!! Just realised the pr**** at the ATO would gouge you for the interest in the deposit account as they do to me now! Paying tax on interest when you are also paying interest on a loan. Thats not pretty. Ubank want to come up with a way to have offset accounts IMO. Surely this can be done along with online banking?

 

[sash]

NAB will do 1% off anything over a $1m for sure.

I had 6.87% with CBA with loans under 700k....am looking at trying to get 6.67%. I know that 6.77% can be done for loans over $1m.

As for being polite....it did not get me anywhere. So I called to have paid out figures....that changed the mix.

I got offered 6.7% with NAB but have to bring everything over (which I never will). I'll contact them to see whether I can bring just $1m over, not everything.

You don't need to be a pain in the Ar$? You can still be courteous without resorting to being aggressive.