Best way to approach bank for lower rate.

[devo76]

Hi all

Just wondering how people approach their bank when negotiation a lower rate.

I will have just over 1 million in borrowings. very good relationship. no missed payments etc etc.

Would just like to know how people have gone about it and what has worked best for them.

Do you go through local branch or do you phone them
Do you aim high say 1%
Any do's and donts.

Cheers

 

[Graingrower]

Start by getting a quote for a refinance with another bank. When you tell your bank manager that you are about to change banks, that should get you a lower interest rate.

 

[Marty McDonald]

Hi,

$1 mil should get you 0.95% to 1% depending on lender. In tems of how you contact again depends on lender. So not sure I woukld try phone first and "retention team"

Be armed with some rates on offer St.George is publishing a discount of 0.95% for loans over $1 mil so its not like its a secret at the moment..

 

[Rolf Latham]

lvr will have something to do with, and also the assessment on the lender on how likely you actually are to jump ship

For eg, if half your stuff is fixed, you usually wont bear the breakcost.

if your current LVR is + 80 % a move will usually reuire

is the lender a second tier lender thats taken a punt on you with regards to serviceability, good examples are AMP and Adelaide Bank. They dont like discounts over normal, they know your threat to move to ABC isnt going to float because your serviceability is marginal

ta
rolf

 

[StuartW]

Call and ask for the retention team, say you have spoken to a broker and he’s recommended refinancing to XXX bank with XXX discount and he's given you a completed discharge authority to fax to the bank but you wanted to speak to them first before making a final decision.

 

[The Fence]

lvr will have something to do with, and also the assessment on the lender on how likely you actually are to jump ship

For eg, if half your stuff is fixed, you usually wont bear the breakcost.

if your current LVR is + 80 % a move will usually reuire

is the lender a second tier lender thats taken a punt on you with regards to serviceability, good examples are AMP and Adelaide Bank. They dont like discounts over normal, they know your threat to move to ABC isnt going to float because your serviceability is marginal

ta
rolf

wot Rolf said....I just get him to do it actually...great job done too...!!
..and we are talking very similar amount.

 

[Kanemicm]

Over 1% discount

I know a few people in a similar situation to yourself. They received a 1.15% discount off the standard variable with Westpac

It required approval from management and they received a personal banker

 

[devo76]

I know a few people in a similar situation to yourself. They received a 1.15% discount off the standard variable with Westpac

It required approval from management and they received a personal banker

That would do me just fine. I have a small issue in that i am currently going through another loan with them to finish my subdivision. The fact that thay have the loan for the existing house might make them think they have me in the short term.

not sure if i should wait until the dust has settled or just go for it now.

 

[Rolf Latham]

they received a personal banker

Punishment ?

ta
rolf

 

[devo76]

Thanks everyone.

I think i will wait just a little longer.After my latest loan is done and settled i will go in and give it a try.

 

[devank]

One of the major banks I am with for last five years is giving 1% discount on a 720K loan (LVR=75%) only after I went with another bank for my new IP!

All thanks my broker friend who told me that I could demand that discount!

It is all about money. If they know that you are going to leave then they will try keep you.

 

[BayView]

It is all about money. If they know that you are going to leave then they will try keep you.

Must be a different lot of Banks to what I've ever dealt with.

We had a big prob occur with our whole finance position during our current PPoR build.

In short; we needed to borrow $100k to complete the project and after doing a reval halfway through the project, they cut us off to the tune of $15k - gave us $85k.

We have over $1 mill in borrowings, and our interest/fees bill per year with the bank is way more than the $15k.

So, after telling the banker I will be taking my bus elsewhere after the build has been completed due to what they have done, he said "that's your decision".

Yep; tried real hard.

 

[Aaron_C]

It all depends on LVR and serviceability - Plus depends if you are going for commercial or residential, as banks are trying to cut back on commercial lending and/or landbanking.

 

[delfredo]

One of the major banks I am with for last five years is giving 1% discount on a 720K loan (LVR=75%) only after I went with another bank for my new IP!

All thanks my broker friend who told me that I could demand that discount!

It is all about money. If they know that you are going to leave then they will try keep you.

Which bank?

 

[BayView]

It all depends on LVR and serviceability - Plus depends if you are going for commercial or residential, as banks are trying to cut back on commercial lending and/or landbanking.

Pretty true in our case.

Some of our lending is for the workshop, which is commercial, but secured by the resi.

 

[Aaron_C]

Pretty true in our case.

Some of our lending is for the workshop, which is commercial, but secured by the resi.

Yeah we have many clients who are having trouble securing funding for landbanking/development. It's a very tough world out there for commercial loans - the banks are basically dictating terms.

 

[devank]

Which bank?

blue one (1N26)

 

[delfredo]

blue one (1N26)

If you're going to aim for 1% discount, why not check out the black one that has a lower SVR to start with.