Com/ ADD - vantage package

From: Simon and Julie M


We have been offered this package from the Com/bank.
Is it a good move to take it up?
It seems like it might be worth pursuing.
All ideas appreciated.
Regards
Simon
 
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Reply: 1
From: Ian Findlay


What package?

What are the details so we can comment?

Ian
 
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Reply: 1.1
From: Simon and Julie M


I am Sorry
The Commonwealth bank Offer a Personal Add vantage package to customers who qualify.
Someone out there in "forum land" may know of this package.
They offer a % off loan products
no establishment fees on future loans etc.
no monthly account keeping fees
Regards
Simon
 
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Reply: 1.1.1
From: Jeanette .


I am currently refinancing my Cth loan with ST George and when I wrote to Cwlth advising them to prepare the discharge, I got a phone call from the Manager asking why I was leaving the Cwlth (I told them they were too conservative with their lending criteria) and he said they would give me that package if I stayed with the Cth. I was very annoyed. They waited until I was about to settle with St George before they start doing anything for me. I wasn't going to call off the refinancing so I am going ahead with St George.
 
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Reply: 1.1.1.1
From: Keith J


Jeanette,

I'm also moving to STG from CBA for the same reason.

CBA do 3 'Professional' Packages. I've outlined the major features.

1. Personal Advantage
To be eligible for Personal Advantage you need to borrow 250K or more.
It costs $300 pa - there are no more establishment or monthly fees after that.
You get 0.5% off var rate loans.
You get 0.15% off fixed rate loans.
No discount off LOC (they call it HEF)

2. Gold Privilege Personal Select
You must be a member of a 'professional' organisation eg accountant, doctor etc
No cost to join
50% reduction in any establishment fee
You pay the $8pm service fee
You get 0.5% discount on var rate loans.
You get 0.25% discount off fixed rate loans

3. Gold Privilege Personal Package
You must be a member of a 'professional' organisation eg accountant, doctor etc
$275pa to join
100% reduction in any establishment fee
No monthly service fee
You get 0.5% discount on var rate loans.
You get 0.25% discount off fixed rate loans

I'm a member of option 2, and get 0.25% discount off fixed rate & 0.5% off var rate & it costs me nothing. Opt 1 is a new option designed to promote loyalty from anyone who isn't a 'professional'.

So do the sums - will paying $300pa for a rate discount add up for you ?

KJ
 
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Reply: 1.1.1.1.1
From: Rasputin .


I beleive some banks offer discounts for a "professional" rate based solely on Income, usually need to be >80000 , but used to get 1% discount if I remember ...
 
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Reply: 1.1.1.1.1.1
From: Anthony C


"Which" bank are charging me 5 grand to refinance a 98k loan, changing my 5 year IO fixed from 7.65% to 6.35%. Is this normal? Has anyone else experienced this problem? I know some banks don't charge a change over figure.
Thanks

 
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Reply: 1.1.1.1.1.1.1
From: Keith J


They are doing the same to me. I wanted to pay off my 160K 6.99% fixed till early 2003 completely, they wanted to charge around 5K. I complained of course and they said "it's a contract so we can't break it". I said I was agreeable to breaking it, but they obviously weren't. The end result is I'll pay off 10K pa (the max) and then pay it all off in 2 years. (It's my own home, so I want to pay it off).

which banks don't charge a change over figure ? They would lose money if they allowed you to change fixed rates whenever a lower rate came along.
 
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Reply: 1.1.1.1.1.1.2
From: Kevin Forster


Most banks will charge you if you refinance a fixed interest loan that hasn't run for the full period to a lower interest rate. I know this is the case for the CBA and they state this in the Lending Conditions booklet. The charge is based on the loss of interest for refinancing to a lower rate. Although if for some reason you want to refinance to a higher rate of interest they will do that for you free of charge.

The only decision is, if you refinance are you going to save more including the charge than staying put.

Hope this helps

Kevin
 
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Reply: 1.1.1.1.1.1.2.1
From: Terry Avery


Almost true. If you switch to a lower rate you pay them but if you switch to
a higher rate they pay you. At least according to my CBA documents.
 
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Reply: 1.1.1.1.1.1.3
From: Terry Avery


This is normal. If you break the contract then you must pay them the
interest that they will lose over the time that you have left on the loan.
This is spelt out in the loan documentation which they give you and you
read. You did read it didn't you? I don't know what you are complaining
about, I fixed at 8.95% five years ago (when interest rates had just come
down from 14.5% and ALL the experts were saying they couldn't go lower, fix
now). Four and a half years on I can't wait for them to roll over into the
current rates. I too got a shock when I asked for the break out costs two
years ago and it was not worth breaking the loan and paying the penalty.
Perhaps someone could lend me a crystal ball so I'll know where rates are
heading next?
 
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Reply: 1.1.1.1.1.1.3.1
From: Donna Larcos


Fixing the loan is always a risk but it
depends how you define risk. I would
rather know what I am up for in the next
three years than run the vagaries of
variable. I did break a loan with Citibank
about 97 and it cost me $4000 from
memory but I did the numbers and broke
even for the first six months with the new
lower rate and was ahead for the last
twelve months.

I remember my dentist telling me she
organized a loan back in the eighties and
had some broker organize it for her. The
papers arrived on a busy day in the
surgery and she signed only to find later
that it was fixed for 5 years at 17.95%!
Needless to say they found his body in
the boot of a car a few weeks later........
Donna
 
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Reply: 1.1.1.1.1.1.3.1.1
From: Rasputin .



Wow , now that is one way to deal with a bad broker
 
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