CBA Early interest payment

Hi all,

Wondering if you guys can help clarify the conflicting info from CBA's call centre and my broker. I tried to go into a branch but I got a new guy who wasn't a home loan specialist so that didn't help.

CBA call centre mentioned that there is an additional promotional discount for early interest payment in addition to wealth package 0.15%, and normal early interest payment 0.2%. With CBA 1-year fixed rate at 4.84%, the call centre mentioned it should be lower than 4.49% (4.88 - 0.15 - 0.2 - additional promo rate).

On the other hand, my broker has not mentioned this additional promotional rate.

Does this additional discount exist or is the call centre confused?

Would be nice to fix really close to my variable rate at 4.3%. I'm doing this as I anticipate lower income next FY.

Interest in advance is essentially a 1 year fixed loan and they take all the repayments as a lump sum up front. If someone asks me for a quote and I didn't have any information otherwise, I'd simply quote the 1 year fixed product with the qualifier that it might change by late May or June.

Quite a few lenders (including the CBA) often do offer an extra discount which gets announced about now. I'm sure they have announced it, but I don't know what it is without looking it up.

Either way, you'll get the discounted rate.
Have any of the Big 4 adjusted their fixed rates since the May announcement?

I noticed that Westpac have announced PIA rate of one year for 4.34% if on the PAP effective 18th May.

Do the banks ever negotiate on fixed rates , say for over 1.5M borrowing - 80% LVR and PIA?

Good question! Anyone has a reply on this? I am thinking to call up the bank to negotiate on the fixed rates before fixing for the 3 and 5 years rates.

Also what's the view on mortgage interest rates in the short term (3-6 months), there are people saying it will go up and some says it won't. Any thoughts on this is much appreciated.
I assume it has to be fixed for this to work?

And to just fix it for 12 months and pay, is it a big ordeal? Like a mini-refinance? Or could it be accomplished with just a call or two?
PIA - Fixed rates process

For Westpac I was able to ring the home loan line and request the variable investment loans to be changed over to fixed (1 year) and PIA. It can be done via the phone - they then send you a form to accept the offer and you return that to implement. On the first call I was told it had to be done before the anniversary date of the loan.

However it appears the offer for Westpac has now expired and I was told yesterday that the applications had to be in by 18th May - my request is going through an escalation process to see if it can be filled. That assumes I can get the paperwork signed and returned before the anniversary date.

Interestingly if you ring their home loan number option 0 takes you to "their PIA applications". They also told be the promotion for PIA came out in March - news to me and disappointment that my broker did to contact me considering the requirement was first raised months ago.

I did find out there was no room for negotiation on the rate for PIA. There was a mention of if you have comparable rates for fixed there might be some room for negotiation - you have to contact the retention team for that though.
We have yesterday sent in the last form for our fixed loans with Westpac. This year they can go in by email once signed and scanned. So, it can be done this late. (We've been working on this for a little while, but the final signed documents have just gone in yesterday for two loans.)