Best variable interest rate???

Hi,

i have 4 IP and all 4 loans are with ANZ with a variable rate of 4.62%. In anyone else with any of the other banks receiving a better rate?

Im thinking about negotiating with the bank for a better rate. What are your thoughts?

what is the best site to compare interest rates?

Thanking you in advance.
 
I have 4.58% with ANZ at 80% at 500K.
Not much different but if you have higher loans and a good LVR and they don't have you by the short and CUrlys (fixed portions, paid LMI) then you should be able to get better with ANZ.
 
ANZ seem quite receptive at the moment.

A few weeks back my discount was only 1.01, my broker got me to 1.16.

Having some discussions about a new loan and they have now offered 1.25 for my existing loans.

So that is a rate of 4.38%

$880k at about 70% LVR
 
Hi,

i have 4 IP and all 4 loans are with ANZ with a variable rate of 4.62%. In anyone else with any of the other banks receiving a better rate?

Im thinking about negotiating with the bank for a better rate. What are your thoughts?

what is the best site to compare interest rates?

Thanking you in advance.

The rates you can negotiate depend on the total amount borrowed, the LVRs, loan structures and frankly how valuable you are as a client to the bank.

Yes, you can probably get better rates than what you're currently on, even possibly within ANZ. How much better really depends on the factors outlined above. ANZ is willing to negotiate as are other lenders.
 
Anz are offering decent pricing on lending above $750k

You don't have to mention the LVR either (if it's above 80). If it's below 80 - then mention it.

If you've got a broker - ask them to request a discount.

Jamie
 
Hi,

i have 4 IP and all 4 loans are with ANZ with a variable rate of 4.62%. In anyone else with any of the other banks receiving a better rate?

Im thinking about negotiating with the bank for a better rate. What are your thoughts?

what is the best site to compare interest rates?

Thanking you in advance.

ANZ will offer a "retention discount" in most cases, Unfortunatly their structure looks after the client with the new lending a lot better than there existing book (this tends to be the case with most banks) Your best bet is to go to the branch directly and LVR does not come into the equation at all so do not be afraid to mention it. Keep in mind if your LVR is above 80% their pricing team does know it would cost you money to refinance as you would need to pay LMI again with the new lender and their is no refind on LMI.

There is no website that can truely compare rates as NAB and ANZ do in fact have the lowest SVR of the big 4 though what is advertised and what you get are very very different. A big example as a Lender for Westpac I am writing non negotiated rates at 4.8% (4.7% on 750k plus) without the need of a pricing approval. Westpac advertise at 5.7% (5.00% when you add the PAP discount) When pricing is an issue I am writing loans at much lower rates. At the moment Westpac is matching NAB and ANZ in most cases and is also willing to negotiate on their fix rate products which have far superior features when compared to the other majors.

Lastly Brokers neotiate well and through experience know where they can get the biggest discounts, keep in mind that a broker is paid an upfront and trail and that needs to be considered when negotiating rates, sometimes it is better to hit the pavement and ask directly in branch.
 
There is no website that can truely compare rates as NAB and ANZ do in fact have the lowest SVR of the big 4 though what is advertised and what you get are very very different. A big example as a Lender for Westpac I am writing non negotiated rates at 4.8% (4.7% on 750k plus) without the need of a pricing approval. Westpac advertise at 5.7% (5.00% when you add the PAP discount) When pricing is an issue I am writing loans at much lower rates. At the moment Westpac is matching NAB and ANZ in most cases and is also willing to negotiate on their fix rate products which have far superior features when compared to the other majors.

I hope you're not going off 5% as a PAP benchmark. As far as brokers are concerned, a $750k loan at 80% starts at 4.5% and only goes down from there. There is virtually no such this as a non-negotiated rate in our office these days.

Lastly Brokers neotiate well and through experience know where they can get the biggest discounts, keep in mind that a broker is paid an upfront and trail and that needs to be considered when negotiating rates, sometimes it is better to hit the pavement and ask directly in branch.

I wasn't aware that the people working in the branches or the mobile bankers are now doing it for free without a salary, bonus or all the overheads associated with keeping the doors of a branch open (rent, infrastructure in branch, car, fuel, laptop for mobile bankers, etc). Nice to know that lenders no longer need to factor this into the cost of a loan.
 
I hope you're not going off 5% as a PAP benchmark. As far as brokers are concerned, a $750k loan at 80% starts at 4.5% and only goes down from there. There is virtually no such this as a non-negotiated rate in our office these days.



I wasn't aware that the people working in the branches or the mobile bankers are now doing it for free without a salary, bonus or all the overheads associated with keeping the doors of a branch open (rent, infrastructure in branch, car, fuel, laptop for mobile bankers, etc). Nice to know that lenders no longer need to factor this into the cost of a loan.

You are right, Lenders do pay their staff and set 4-5 million dollar a month targets and hefty cross sale targets and pay a 80 - 120k pa salary as a base, A broker on standard up fronts would be paid $324,000 in commission and then a $81,000 trail writing the same numbers. There is roughly a 0.8% margin in cost of funds vs return.

Do not get me wrong Branch staff are a cost on the business though when a branch staff member no longer delivers or a branch is no longer profitable that cost can be managed, A trail commission can not be.

Also keep in mind profits for a bank come from numerous sources also covering the cost of rent, non lending staff, advertising and so on.
 
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I hope you're not going off 5% as a PAP benchmark. As far as brokers are concerned, a $750k loan at 80% starts at 4.5% and only goes down from there. There is virtually no such this as a non-negotiated rate in our office these days.


Sorry missed this, 5% is just what is advertised. No body writes a loan 750k without discounting. I personally do not negotiate every deal as it is not always a deal breaker if you can not get the lowest rate. Each customer is different and has different needs. Price is not always a priority (though it does help)
 
Martin you might want to add to your salary the cost of the car a mobile banker drives, the cost of office space, the laptop and software (and IT support) you use to get a loan approved.

Have a think about how much a major bank spends on brand awareness and marketing and spread that figure across the front-line sales force. At the other end, how many business cards do you hand out every year? They only cost $0.20 each, but the banks aren't supplying my business cards for me.

Comparing an individual salary of $120k against total business revenue of $400k is a ridiculous comparison.

If lenders genuinely thought the broker channel was so expensive, 3 out of 4 major banks wouldn't be directly investing so heavily in the broker channel.


I personally do not negotiate every deal as it is not always a deal breaker if you can not get the lowest rate. Each customer is different and has different needs. Price is not always a priority (though it does help)

I agree that price isn't always a priority, but I still negotiate every deal because it delivers a better outcome to the client, even when it isn't a deal breaker. I guess I'll have to concede that the broker channel does reduce the banks margin after all.
 
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You seem to be taking this as a personal attack on brokers. Banks rely very heavily on brokers as they deliver a very large portion of their book. I only pointed out that most Banks do take commission into account when negotiating on price. Banks also have the ability negotiate lower providing the loss is made up through other products.

Brokers are much loved by the bank and the staff within it. They reach clients the bank would miss or not be available for, They don't deliver they don't get paid. The smaller of the banks rely more so on brokers as 70-80% of their business is written by brokers. Yes brokers work bloody hard to earn a decent living and they deserve praise.

And to answer your question. I don't sit in a branch, My cards cost roughly $300 a year, The car is $5,000, Laptop $1,200 and I have no advertising budget.

I am the cheaper option per loan, Though I bring in roughly $5,000,000 per month in new business. Brokers in my patch bring in well in excess of $50,000,000 per month. You can see clearly by the figures I would be the first to go :D
 
Of course you have an advertising budget, it just doesn't have your name on it. Every lender spends millions every month on brand awareness and advertising, this has a direct outcome on each individual employees ability to do business.

A laptop may cost $1200 but behind that there's significant investment in IT behind that that keep it secure, keep the software up to date and so on. The Microsoft office subscriptions in my business cost me more than $1200 / year and that's one of the cheaper software packages I need to do business.

There is very much a collaborative approach brokers and banches. There's no doubt that a good relationship with the local branch can be of significant benefit to a brokers business and vice versa. I'm simply taking issue with your original statement that the margin of dealing with a branch is lower than that of a broker.

The last survey I read indicated the average broker take home salary was about $80k. It's not a fair comparison to offset one persons individual salary against a small businesses total revenue.
 
I'm with NAB.. 4.30% with $2,000 sign up bonus.
$1.4m loan 60% LVR. Let me know if you are interested, I could hook you up to my NAB contact directly.
 
Total loans $1m - $1.7M

Currently as a rule...pretty much close to their max discount with some discretion( We have been applying these discount for our new customer and also existing customer of the retrospective big 4 banks)

4.38% ANZ ( 1.25% discount) -- not dependent on LVR

4.35% CBA ( 1.30% ...closer to the $1.2 m mark) under 80%

4.29% NAB broker ( 1.37% ....closer to the 1.5M mark and new to bank only + LVR under 75% preferred)

4.40% Westpac ( 1.30% ...closer to the $1.4M mark...new to bank preferred )

For the bigger loans over $2M -- case by case but def a touch lower still.

For the smaller loans under $1m ( ie sub $300k and $500k loans)
Best to stick and negotiate with the tier 2 banks - ie Suncorp/citibank/ ING/Credit unions/ Bankwest/ St George etc...Rate from sub 4.35% as well.


It's a competitive market right now!!! Let the feet do the talking... happy negotiating :)
 
Hi mick
what do u think would b the max discount on a 2.25mill loan with anz
what do u think would b the max discount on a 720k loan with cba
 
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