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Hi All,
My mortgage broker has come back to me to say he thinks i should go with CBA at 5.90% on a loan of $168000 for an IP. This is my first loan so I'm new to the whole lending thing.
Am I being robbed.......
A friend of mine has 4 IP with another bank earns half my salary, has LMI on all 4 properties and gets a rate of 4.99 with CBA for her 5th IP.
Is the rate am being offered due to the low $ amount of my loan?
Thanks Mick!
I have pushed back on him and he said It not about chasing the best rate. I need to look at the loan structure so that the bank will release equity down the track to purchase another IP.
He reckons he might be able to get me 0.50% more.
Our time?s better spent on getting your loan approved than sucking up to the banks to get an extra 10 bps of discounting
If you do, however stay with CBA, discounting will increase under the package as your total borrowings with them increase.
This is BS literally takes me 30 seconds to send a pricing request, for new funds get a decision straight away doesn't need to go to the pricing team. If wanting to ask for more then the 'auto pricing decision' then usually get a decision back within 2 hours. If then still not happy with this, then need to spend time sucking up to the big wigs for better discounts.
This however is the truth, if you're plannig to buy again and using CBA you discount will dramatically increase once >$250k in borrowings as mentioned previously. But again not if your broker is lazy and just gives you the standard discount and doesn't take a couple of minutes to save you thousands.
Rate isn't the most important thing, but always need to offer the best for the client.
Thanks Brady, I have purchase two IP in the last two weeks. So i actually need two loans. Im thinking maybe this is his plan to ask for further discounting once i apply for the second loan?
The rate is the CBA?s standard variable rate. There is eligible discounting of 0.50% under their package, see attached. Annual fee would apply.
That said, don?t make it all about rate or you won?t achieve your goal of building a property portfolio: Why?
1. Rate?s determined by a lot of different things such as the purchase price and loan amount, special offers or what existing business you already have with the lender. We aren?t rate chasers and don?t chase the lowest rate available. That?s not our value proposition unlike a majority of brokers who only sell on rate. Those low rate products are wrong for investors. We look to get you into the right loan that will move you forward.
2. Our time?s better spent on getting your loan approved than sucking up to the banks to get an extra 10 bps of discounting
3. We may refinance your loan to a different lender after a short period anyway if that will help you move ahead. Let?s say, you get a the rate benefit now that saves you $200 pa in interest and you refinance after six months. Would that be worth it if your refinancing costs were, say, $500 - $600 to go to a different bank that will give you more equity or allow you to borrow more?
4. If you do, however stay with CBA, discounting will increase under the package as your total borrowings with them increase.
If you're with what is your best rate and what loan amount?
Agreed, CBA is good at equity release, less declarations forms to sign.
4.65% is a great rate you got their from CBA. Hope CBA will pass the 0.25 cut, and your new rate becomes 4.40%
Whats the discount on loans over $1m at the moment for CBA?
(From what you are either getting or have been able to secure for your clients).
Looking to move over from STG to CBA for personal reasons, but want to make sure rate is the same.
Whats the discount on loans over $1m at the moment for CBA?
(From what you are either getting or have been able to secure for your clients).
Looking to move over from STG to CBA for personal reasons, but want to make sure rate is the same.