Best discount from commonwealth bank 0.94 off variable rate

[Rolf Latham]

sometimes I wonder whether people read the threads before they post

You can get better than that at UBank with a 50K loan minimum !!!!

Hi Euro

xcept that Ubank dont want any loans >80 % lvr. They dont want the complications that come with the LMI issues. Means a local human might have to touch the file, and that wont fit the sausage process.

ta
rolf

 

[euro73]

Hi Euro

xcept that Ubank dont want any loans >80 % lvr. They dont want the complications that come with the LMI issues. Means a local human might have to touch the file, and that wont fit the sausage process.

ta
rolf

Yep - agree, and so on and on.... I guess I just wanted to make the point that lending doesn't begin and end with Westpac and CBA and there are lots of alternatives which offer equal or often better value ( rates, borrowing capacity and fees -wise, I mean) .. and of course diversity of lenders is sensible anyway.
There isnt a rate quoted here- whether it be 6.59 from UBank or 6.85 from loans.com.au or 6. 81 from CBA, that isnt incredibly sharp. They're all pretty great deals.

 

[delfredo]

I read in the media that Westpac now no longer charges LMI for LVR up to 85%.

 

[Rolf Latham]

that was then

this is now

was a limited special to April 30

ta
rolf

 

[delfredo]

I've always wanted to know how nab can set its standard variable rate at 7.67%, lower than other smaller banks:

• St George: 7.8%
• BankWest: 7.7%
• Suncorp: 7.83%
• BoQ: 7.86%
• HSBC: 7.74%
• Citi: 7.8%

Has nab always maintained this level of discount margin over other banks in the past 3 years?

 

[im sparticus]

I've always wanted to know how nab can set its standard variable rate at 7.67%, lower than other smaller banks:

• St George: 7.8%
• BankWest: 7.7%
• Suncorp: 7.83%
• BoQ: 7.86%
• HSBC: 7.74%
• Citi: 7.8%

Has nab always maintained this level of discount margin over other banks in the past 3 years?

things went out of wak when most of the other majors increased beyond the rba hike while nab didnt (wasnt to long ago)

just going on advertised rates (which is all you can really bank on) NAB seem better than most for smaller loans, just above 250k seems to get you the most value with NAB, once your loans start growing it seems banks like st george and CBA reward you the most with the best value being closest to 1mil.

 

[sash]

In terms of rate discount...NAB is best as they will offer a 1% discount on their 7.67% rate...so you should get 6.67%.

CBA is hard work....I tried for 6.67% but was not able to get it.....but got close to it.

I know I copped a lot of criticism for myself taking a blow torch to the Big 4...but this is sometimes what is required. They are not going to drop rates unless they know you will walk.

Anyway....hope people are able to neogtiate better deals by being more persistent. It is win for me also...as more people who do this and push back on the banks the more easier it will condition the larger banks.

What really astounds me is the number of people who whinge about rates but are not prepared to enter hard negotiation.

There is an old saying....."If you don't ask...the answer is always NO!"

things went out of wak when most of the other majors increased beyond the rba hike while nab didnt (wasnt to long ago)

just going on advertised rates (which is all you can really bank on) NAB seem better than most for smaller loans, just above 250k seems to get you the most value with NAB, once your loans start growing it seems banks like st george and CBA reward you the most with the best value being closest to 1mil.

 

[im sparticus]

In terms of rate discount...NAB is best as they will offer a 1% discount on their 7.67% rate...so you should get 6.67%.

CBA is hard work....I tried for 6.67% but was not able to get it.....but got close to it.

I know I copped a lot of criticism for myself taking a blow torch to the Big 4...but this is sometimes what is required. They are not going to drop rates unless they know you will walk.

Anyway....hope people are able to neogtiate better deals by being more persistent. It is win for me also...as more people who do this and push back on the banks the more easier it will condition the larger banks.

What really astounds me is the number of people who whinge about rates but are not prepared to enter hard negotiation.

There is an old saying....."If you don't ask...the answer is always NO!"

care to post up a link to the "offer"?

 

[im sparticus]

its funny it always seems to be the other bank that can do more for you regardless of who it is, makes me wonder weather the big banks real intend is on turning us over to generate more fees etc?

 

[delfredo]

care to post up a link to the "offer"?

I think what sash meant is she got a privately negotiated deal. There's no link to that. No lender would want to publish their 'special' deals. If they do then prospective borrowers will take that to another lender to negotiate a better deal.

 

[sash]

Yep....the reason I did not publish it is because a lot of the lazy skeptical people thought it could not be done. Well it can be.

Happy to respond to PMs on how I did it.

I think what sash meant is she got a privately negotiated deal. There's no link to that. No lender would want to publish their 'special' deals. If they do then prospective borrowers will take that to another lender to negotiate a better deal.

 

[sash]

No this was just retention....the prize staying with the CBA.

No fees as they wave most of my fees anyway.

As I said ...what annoys me is the apathy of some here....as investors you would think people would be better able to negotiate rates.

I did the numbers ....4 months ago I was paying 7.06% I/O....now I have saved myself about 3k per annum. The cost doing this was about 10-12 emails and 4 four phone calls....which consumed about 2 hours of my time. 3k for 2 hours work....where do I get more of this.

its funny it always seems to be the other bank that can do more for you regardless of who it is, makes me wonder weather the big banks real intend is on turning us over to generate more fees etc?

 

[devo76]

that was then

this is now

was a limited special to April 30

ta
rolf

I think s new 85% and 90% product is coming out.
1.25% for 90 LVR I think.
I hope there is no LMI for 85. I missed the last one.

 

[jonmardell]

ING have just released a 85% lmi fee waiver and westpac is discounting lmi between 85 & 90%.

 

[jonmardell]

I think s new 85% and 90% product is coming out.
1.25% for 90 LVR I think.
I hope there is no LMI for 85. I missed the last one.

ING have just released a 85% lmi fee waiver and westpac is discounting lmi between 85 & 90%.

 

[im sparticus]

Does anyone think their discount (above advertised) will have any bearing (limitting) on future borrowings and lvr's?

also for those with greater than the advertised rate with CBA are they limitting you to lvr's of below 75% like advertised and what would the case be if you needed to refi above 75% in the future?

 

[Void]

6.59% at CBA if paid in advance

Hi,

if payment in advance is your thing - CBA has a deal (I believe until end of June) with 6.59% if you pay one year in advance.

Cheers,

Void

 

[sash]

Not it is a once off where the CBA is offering 0.2% off. Next year will be different

Works well if you plan to reduce taxable income for 2010-2011.....but then you have less deduction for next year.

The 6.59% is not a cheap as it looks because if you actually held onto say 14k (200k) loan...the interest earnt or reduce would be more than 0.2%.

Cam you please elaborate on that? Are you referring to 1 year advance payment of interest? And do you get lifetime discount which, at present standard variable rate, equates to 6.59%

 

[delfredo]

ING have just released a 85% lmi fee waiver and westpac is discounting lmi between 85 & 90%.

Thanks for the update. Ultimately one needs to weigh up the benefit of nil LMI vs greater discount on standard variable rate. My view is that the discount offered by ING and Westpac is still not competitive.

 

[Mick C]

Thanks for the update. Ultimately one needs to weigh up the benefit of nil LMI vs greater discount on standard variable rate. My view is that the discount offered by ING and Westpac is still not competitive.

True to a point, But if you could save $4-7k in LMI, it is def worth it...as you could refinance to a cheaper lender in 3-4 years time ( taking in consideration you went for a product with low or no break cost...ie Not fixed) as long as the value of the asset has gone up in value.


Regards
Michael