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to be honest, 1% discount off its SVR itself is still pretty decent. I was told yesterday that NAB is going to do the same for the new investment loan.
my concerns are whether there will be more tightening for investment loans, whether such 1% discount is for the life of the loan.
I suspect that if you already have discounted existing lending, they'll match it for new lending, but I wouldn't be expecting anything more any time soon.
Eventually though, they'll come around and be willing to negotiate again, just not right now.
Of course, this could simply be a conspiracy involving all us brokers because we're sick of chasing pricing requests.
Please correct me if I misunderstood you.
Say for example, I have 2 loans both with 1.3% discounted SVR. If I get a third loan from the same bank, they will still extend the 1.3% discount to the new loan?
Please correct me if I misunderstood you.
Say for example, I have 2 loans both with 1.3% discounted SVR. If I get a third loan from the same bank, they will still extend the 1.3% discount to the new loan?
Usually they do - especially if the new loan is at the same or lower LVR.
Having said that - new changes are being implemented daily....so don't be surprised if they don't honor an existing discount particularly if you're trying to get it applied to an IP.
Cheers
Jamie
It may be of interest that ANZ seem super competitive right now.
I just refinanced 3 properties and was offered 1.25% off without haggling.
Paying 4.13%.
Nice. What's your total lending and LVR?
It may be of interest that ANZ seem super competitive right now.
I just refinanced 3 properties and was offered 1.25% off without haggling.
Paying 4.13%.
Two to three years ago we would only price on loans which were relatively large e.g $750+.
1.15% was the best discount you could obtain and the discounts we generally saw ranged between were .05-.15% above the carded rate.
We would rarely have to submit pricing requests maybe 15% of the deals we would request for pricing.
To be honest the discounts now we are seeing is starting to become ridiculous. Today if you lodge a $250k deal you need to request for pricing...
It is one part of the job that is so tedious having to justify why you are requesting for the discretion and what the competitors are offering. Chasing up requests, having the loan re-approved because they didn't apply the pricing or needing to request a new one because the one you have has expired.
I liked it when the .70% were standard.
I would much rather the banks to lower the SVR and not discount as steep but of course that would never happen.
At the same time it is a bit ridiculous that some banks wont price on investment loans. At the end of the day the banks win because they have higher margins. if they wanted to slow down the investment loan market they would be much better increasing the assessment rate for investment loans.
The fact that a 45k graduate living at home can borrow 600k to purchase an investment property just tells you how fundamentally flawed the system is....
Great Post! Couldn't agree more!!
It's a PITA also!
Getting questions like "a mate of mine just applied for a loan and received 4.1%"
Response "Whats the loan amount and LVR"
"No idea mate"