CBA Rate is this a good deal

[brocky05]

Hi

Im just negotiating a deal with the bank now and the mortgage advisor has advised I go on the wealth package. At the moment I have an

IP ( loan with commonwealth and I owe $140,000 on it
Block of land Loan new loan with commonwealth ( $155,000 in total )
In the future will be getting a construction loan ($290,000)

He said the best deal is 4.99% does this sound any good or should I try to get him lower I know I can go straight to ubank and get a better deal is it worth all the hassle. With the wealth package you also pay $400 per year.
If I could get them to budge lower can someone give me some pointers on what to do/say im no good at this sort of thing. I really want the best deal not having a whinge or anything but my son is disabled and I will have to care for him for the rest of his life also means partner can only work part time because of this. Im out to find the best deal and yes I do know the bank is not going to give the slightest toss or consideration or different treatment because my son is disabled over the last 5 years I have learnt its a fend for yourself and the government services are also useless pathetic and a complete waste of time. Anyway I could harp on for ages...

 

[D.T.]

The interest rate is about 6th down the order in terms of important attributes for me.

If its the #1 attribute for you, may as well just swap it to some web based lender.

 

[Brady]

What's the LVR?

 

[Rolf Latham]

thats an unusual number

depending on the LVR the sub 5 % is ok for that amount of lending.

5.00 is rack for 80 % lend on 585, so 4.99 looks beatable especially knowing that Citi and Sun will do 4.69 for "comparable" products

there are other CBA products you could use that would have lower overall cost, but not have the same features

Be wary though of comparing oranges and carrots because they are the same colour, eg im pretty sure U bank dont do build nor have offset, and have pretty silly legal clauses around their redraw


rolf

 

[brocky05]

What's the LVR?

HI

Im not sure of the LVR I think its borrowing 100% and using IP as security. To be honest though im not entirely sure. Just want to make sure Im getting a good deal as have been pretty loyal to CBA and expect the same in return and lets face it no matter what the interest rate they are going to make alot of money anyway

 

[D.T.]

That means you're cross collateralized. Well done

 

[Rolf Latham]

and lets face it no matter what the interest rate they are going to make alot of money anyway

commercial considerations and loyalty only go so far on the same path.

the old days of branch based approvals and risk rating is long gone.

ta
rolf

 

[Brady]

HI

Im not sure of the LVR I think its borrowing 100% and using IP as security. To be honest though im not entirely sure. Just want to make sure Im getting a good deal as have been pretty loyal to CBA and expect the same in return and lets face it no matter what the interest rate they are going to make alot of money anyway

How are you not sure of the LVR? I believe I spent a reasonable amount of time replying to your PM around how you should structure the loans to avoid x-coll.

What have you discussed with who's arranging your finance besides rate?

4.99% is an odd rate, look like the 5 year fixed rate.

 

[brocky05]

How are you not sure of the LVR? I believe I spent a reasonable amount of time replying to your PM around how you should structure the loans to avoid x-coll.

What have you discussed with who's arranging your finance besides rate?

4.99% is an odd rate, look like the 5 year fixed rate.

HI Brady

Its a motgage advisor in Sydney who works for the CBA... not sure if I should mention any names.... my situation has changed slightly since your pm different amounts and a bit different. You will have to excuse my ignorance I know absolutely not much about loans apart from the fact that I wish to borrow x amount and the bank is taking care of the rest.... Trying to educate myself

 

[Oshawott]

never mention banks and loyalty in a single post. just not compatible.

 

[brocky05]

never mention banks and loyalty in a single post. just not compatible.

Yeah I know. Its a shame Commonwealth had me from Kindergaten up until I was 17 years old when they failed to give me a loan for my first car ( no idea why but I was annoyed so I joined St George purely just because they would not give me a car loan St George had no problems with it even though I had no prior history with them. 10 or so years later went to buy a house St George wouldnt lend what I wanted and Commonwealth bank did so I jumped ship again..... I think commonwealth bank was a little to generous in what they loaned but we have had no problem paying it back..... I have no idea why they wouldnt give me a car loan but anyway..... I consider I have been pretty loyal to them.

 

[Peter_Tersteeg]

You do know that the Dollarmite account is nothing but brain washing children from a young age.

It's probably the most successful marketing strategy in Australian history!

 

[Marty McDonald]

Talk to Brady again it sounds like he has already given you some advice and he knows CBA well

 

[Brady]

Loyalty is great but end of the day you need someone who is looking after your best interest. If you don't understand they should be explaining, some clients are happy for me to make my suggestions and roll with what I suggest... But those clients aren't jumping on SS confused about if I'm looking out for them.

As always if you're not happy or can't trust who is looking after securing your finance then don't use them. Be it broker or banker..

 

[brocky05]

Loyalty is great but end of the day you need someone who is looking after your best interest. If you don't understand they should be explaining, some clients are happy for me to make my suggestions and roll with what I suggest... But those clients aren't jumping on SS confused about if I'm looking out for them.

As always if you're not happy or can't trust who is looking after securing your finance then don't use them. Be it broker or banker..

Obviously im not educated fully in this area and anybody that is in this kind of position im obviously going to respect them and what they have to say. I'am one to probably just roll along with what im told at the end of the day as long as I get the loan and move into my property im happy. Whether im getting the best advice or not I would have no idea.

 

[brocky05]

You do know that the Dollarmite account is nothing but brain washing children from a young age.

It's probably the most successful marketing strategy in Australian history!

Yes the good old dollarmite account I wish I could go back to those days....
I use to love putting my gold coins in the passbook...

At least it teaches kids to save their money but I have scottish blood in me anyway so im a tight ****.

 

[Brady]

I'm not suggestion you need to be fully educated, I'm sure you excel in your line of work or different areas. But I don't think someone seeking finance should be left in the dark pondering questions, to me that means they haven't done enough for you. I think the staff member should of done more, as per your posts they haven't informed you of your LVR.

What happens when it comes time to build? Is there enough equity, will you go into LMI territory, if you're LMI later you 100% don't want to be x-coll... Well really shouldn't be a need for it now. Have you discussed the construction loan, does the contraction loan service, is it tight? Would a change in rates etc effect you?

 

[Hodge]

I can't offer you financial advice but can offer you the following advice: speak to a broker! If you walk in the bank green they will most likely structure things not beneficial for you. Not knowing the lvr is a concern. If you need a good broker pm me.

 

[brocky05]

I'm not suggestion you need to be fully educated, I'm sure you excel in your line of work or different areas. But I don't think someone seeking finance should be left in the dark pondering questions, to me that means they haven't done enough for you. I think the staff member should of done more, as per your posts they haven't informed you of your LVR.

What happens when it comes time to build? Is there enough equity, will you go into LMI territory, if you're LMI later you 100% don't want to be x-coll... Well really shouldn't be a need for it now. Have you discussed the construction loan, does the contraction loan service, is it tight? Would a change in rates etc effect you?

We have not really sat down yet and formally chatted although mortgage advisor has promised this when its all formalised. You really know your stuff Brady... im regretting not contacting you now to set this all up for me.

 

[Brady]

I can't offer you financial advice but can offer you the following advice: speak to a broker! If you walk in the bank green they will most likely structure things not beneficial for you. Not knowing the lvr is a concern. If you need a good broker pm me.

Gain not correct info, brokers and bankers can be terrible. Need to find someone you can trust. Great that you can pass the details on of someone that you can recommend. This is what is great. But putting a blanket on brokers being good and bankers bad is what this forum loves. But it's not the case. SS is spoilt with some great brokers, along with a few that are far from it.