Discount off advertised rates for fixed rate loan

[tonyc00]

Hi

I'm presently getting a discount on my I/O variable IP loan of 1.18% (from Westpac).

I'm thinking of switching to a fixed rate, say 3 or 5 years.

Can I carry the 1.18% discount to the current advertised rate for fixed loans (from Westpac). My simple logic being that the loan itself remains unchanged - $amount/ loan number/ security etc. Its not a "new" loan".

Or do I need to renegotiate a new discount (for the fixed loan).

Many thanks

Tony

 

[Aaron_C]

No. The 1.18% discount is off the variable rate. When you switch to a fixed rate, it is an entirely different product so the discount doesn't carry over.

 

[Rolf Latham]

WBC will lop off 25 to 40 pts of carded rate if they can see value in holding on to the business

Margins of fixed rates vs svr rates are much lower, hence the lower amount of apparent discount

Ta

Rolf

 

[Colin Rice]

1.18% is a decent discount.

You could keep a portion variable and the other fixed.

No harm in asking though?

 

[Corey Batt]

I've negotiated marginal discounts on fixed rates over the last 12 months, mainly for sub 80% 1m+ lending. Mostly only .10% than card rate, nothing major. Very different to variable rates, you'll find much resistance for the most part.