Current Home Loan interest rates

[DavidHooper]

I've been offered a variable rate of 4.75% by CBA, NAB have agreed to match offer. Loan of just under $1m for investment, a low LVR due to my main residence having substantial equity.

However - they both charge an annual wealth/package fee (of about $400 or so). They are open to waiving it for one year. What I want to know - has anyone ever been successful in having it permanently waived?

 

[Aaron_C]

However - they both charge an annual wealth/package fee (of about $400 or so). They are open to waiving it for one year. What I want to know - has anyone ever been successful in having it permanently waived?

No because the package is what gives you the good rate...

 

[jonmardell]

I've been offered a variable rate of 4.75% by CBA, NAB have agreed to match offer. Loan of just under $1m for investment, a low LVR due to my main residence having substantial equity.

However - they both charge an annual wealth/package fee (of about $400 or so). They are open to waiving it for one year. What I want to know - has anyone ever been successful in having it permanently waived?

first year is usually easy but ongoing is almost impossible with most lenders. With the rate they are offering are you really worried about the annual fee?

 

[DavidHooper]

first year is usually easy but ongoing is almost impossible with most lenders. With the rate they are offering are you really worried about the annual fee?

The 4.75% rate is pretty good without being brilliant for a loan that size from a Big 4. Just trying to fulfil my obligations as an investor to get the best deal possible. A $400 fee x 10 years = material amount of money.

Anyway, if it's not possible then best not to try.

 

[The Fence]

The $400 fee saves you around 1% in interest.

How big was your loan again?

 

[DavidHooper]

The $400 fee saves you around 1% in interest.

How big was your loan again?

About $1m. $400 would be equivalent to 0.4%.

 

[Mick C]

0.04%

Either way you have done well David for the big 4.

 

[DavidHooper]

0.04%

Either way you have done well David for the big 4.

Right, 0.04%. My bad

 

[The Fence]

Lol, it happens to all of us from time to time.

I'm not immune to miscalculations either.

You are on a good wicket with this package.

You are receiving around $10k worth of interest discount for the cost of $400.

 

[DavidHooper]

Lol, it happens to all of us from time to time.

I'm not immune to miscalculations either.

You are on a good wicket with this package.

You are receiving around $10k worth of interest discount for the cost of $400.

That's one way of looking at it.

Another is that the bank is still making a substantial margin - most banks have a net interest margin of around 2 percentage points I believe - and then charging me an annual fee for this privilege.

 

[The Fence]

Well then good luck trying to claw back the $400 on a permanent basis.

Let us know how you go .

 

[DavidHooper]

Well then good luck trying to claw back the $400 on a permanent basis.

Let us know how you go .

Please see above - I mentioned that since the feedback from those that know around here is that it is near impossible, I'm not going to try.

 

[molly1a]

Rate

We thought our rate was good we have had 2 rate drops this year went from 5.03% to 4.99% now down to 4.89% for just under 1,500,000 million debt. Looking at other peoples rates on here we still are along way from a good rate.

 

[DavidHooper]

We thought our rate was good we have had 2 rate drops this year went from 5.03% to 4.99% now down to 4.89% for just under 1,500,000 million debt. Looking at other peoples rates on here we still are along way from a good rate.

In some cultures long-term customer loyalty is rewarded. However, it would appear that in some instances in Australia long term loyalty is seen as 'client inertia' that can be exploited to gouge them.

Banks giving superior interest rates to new clients is one example. Also sometimes happens with utilities (gas, electricity).

 

[Rolf Latham]

That's one way of looking at it.

Another is that the bank is still making a substantial margin - most banks have a net interest margin of around 2 percentage points I believe - and then charging me an annual fee for this privilege.

there are lower cost optionsout there if cost is the primary focus

Loans.com.au is a perfect example

ta

rolf

 

[dboy_tomato]

Current rates

Noticed the thread has been dormant for a little and considering the Spring season is near. Has anyone had any good deals?

I am currently applying for a NAB loan for $1.5m+. Got an indicative rate of 4.74%. I haven't really negotiated yet as I still haven't found the right property.

Maybe 4.65%?

Cheers

 

[Brady]

LVR? If less the 80% would be pushing for sub 4.7%

 

[Mick C]

80% LVR?

if so the Big 4 ( Mainly Westpac an CBA) would offer under 4.74% for that sort of loan amount....how low depends how strong the deal is ( ie PPOR? good credit file).

Else if you dont mind credit unions ( i have 2 of my own loans with credit Unions) 4.79% and under is a walk in a park for loans starting at $500,000.

 

[Brady]

New money to CBA is nuts at the moment. Refinancing to CBA $435k @ 90% LVR rate 4.75% - better rate then I have myself which is ~$1M

Same day priced some existing borrowings for client and could only get 4.75% on $1.25M as it was existing borrowings and not new.

 

[Mick C]

P.s Bankwest is desperate for business esp the sub 80% loans and loans over $600,000.....they tend to be a bit slow on the approval side of things...but pricing wise top of their game for the last 2 month anyway.

2 deals this month;
$760k - 4.69%
$1.32M- 4.63%

Not bad for a branch based bank. Good luck.