Check your interest rate on Professional Packages

Hi all

I have a package with Westpac. I was looking at my loan statements carefully for once and noticed the discounted interest rates I am paying are all over the shop.

On ringing Westpac, I was told that the discount rate doesn't automatically change when you move into a new discount bracket. Your relationship manager needs to submit a written application.....how absurd is that!!

So.......might be worth checking your own statements:)

ani
 
What I have found is that when I was on a professional package, the interest rate that I was provided was 0.1% greater than what I could negotiate directly with Retail Banking.

So in effect, assuming total loans of $1,000,000, I was paying $500 a year in professional package fees to gain access to professional package interest rates that were 0.1% greater (or $1,000 per annum), so in total I was $1,500 a year worser off to gain access to a relationship manager.

Over 30 years, assuming no interest rate rises this works out to be [highlight]$45,000 worser off[/highlight] to remain a professional package client than to being a Retail client.

As Ani has pointed out, I would check every rate, every fee and ask and ask again about how that cost can be waived or the interest rate can be reduced.
 
My pet hate at the moment.

CBA is IMO screwing all and sundry with 50c Netbank per payment charge and now increase in ATM from 50c to a $1 or something like that. And ......despite 5 years as Pro Package Customer I have to pay.

I am reviewing the lot but finding Member Equity (new owned by non-profit Super schemes Bank) is very cost effective for no fee. ;)

I have a one IP loan with CBA at 6.19% fixed for five year which I may just leave with them as punishment and move the rest and a new $700k developoment loan to ME.

Still looking but here is the website and some on the deals.

http://www.membersequity.com.au/hloan/

If you are a member of an eligible Super Fund or Union, you qualify for a Super Members Home Loan (SMHL) and can save 0.25% p.a. off the Members Equity Bank variable interest rates on our Standard Home Loan, Ultimate Offset Account, and Interest Only Investment Loan. That can add up to thousands of dollars over the term of your loan.

Presently they offer with discount 6.74% with


All Members Equity Bank home loans provide you with:
Low ongoing interest rates
No application or valuation fees
No ongoing account keeping fees
No fees to redraw,fix or split your loan


the best deal is

Ultimate Offset Account
A versatile home loan and transaction facility with 100% offset plus fee free access to your money via ATM, EFTPOS, GiroPost, Cheque, Internet and Phone banking
.

FYI and comments Peter 147 :)
 
Hi Pete


You will find the ME (members rate) Offset loan is at 7.04, the 6.74 is the basic home loan which someone like Homepath can do at 6.40 and sapphire at 6.29.

Almost all products has some form of positive or negative, though once you start hunting mainly at cost things that should be considered are often over looked.



ta

rolf
 
Pete

BTW the, 6.19 is a nice rate, why would you even consider moving that ?

We have a few clients were we got into a 3 week window about 3 years agi with a 5.89 fixed for 5 years with St George Bank.

ta

rolf
 
Rolf Latham said:
Pete

BTW the, 6.19 is a nice rate, why would you even consider moving that ?

We have a few clients were we got into a 3 week window about 3 years agi with a 5.89 fixed for 5 years with St George Bank.

ta

rolf

Probably will not. Just frustrated wtih the overall package promises versus actual.

We should meet.

Peter
 
But you gte what you pay for with these el-cheapo loans. We have a couple with Homepath and they have been an absolute pain anytime we try to do something even very slightly different.

Even had them pull an "unconditional" loan 2 weeks before settlement - ended up having to be rescued by Rolf. (PS thanks again if your listening!).

Ian
 
IanF said:
But you gte what you pay for with these el-cheapo loans. We have a couple with Homepath and they have been an absolute pain anytime we try to do something even very slightly different.

Even had them pull an "unconditional" loan 2 weeks before settlement - ended up having to be rescued by Rolf. (PS thanks again if your listening!).

Ian

Another recomendation for Rolf, Peter 147
 
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