Discount %

[soyabean]

Hi,
Can I ask what % of discount you are getting for loan >1M ?
My fixed rate term loan is maturiing soon into var rate and my bank is only offering 0.5% discount (under one of the Professional/Choice package whatever name they call it these days). I may walk if other banks offer more discount.
Thank you,

 

[virgo]

Discount

Hiya

I've got a .8% with Westpac Pro pack; my loans are 750K in total.....total interest rate is 6.91% with the latest reductions...

But i seem to hear that RAMS taken over by Westpac is offering more discounts? Anybody thinks Westpac will match?

Cheers
jennifer

 

[Bradsdad]

0.50% off what? i.e what is the SVR?

Just because a discount is higher doesn't mean the end price is better

I'd suggest between 0.75% and 0.90% would be what you're looking at. Again the 0.50% on offer maybe as good as any of the above depending on the starting point/rate.


Regards
Steve

 

[kissfan]

I've got a .8% with Westpac Pro pack; my loans are 750K in total.....total interest rate is 6.91% with the latest reductions...

Hi virgo.

Is your rate 6.91 or should that read 6.96?

Am on the same package and by my calculations, the new rate will be 6.96.

Regards
Marty

 

[soyabean]

Hiya

I've got a .8% with Westpac Pro pack; my loans are 750K in total.....total interest rate is 6.91% with the latest reductions...

But i seem to hear that RAMS taken over by Westpac is offering more discounts? Anybody thinks Westpac will match?

Cheers
jennifer

Thanks jennifer. I think I d better enquire other banks or better even talk to oneof our good MB here. I got .8% discount for my other loan with that same bank but with this one that is maturing soon they are saying margin is tight only 0.5% I am not very happy about it .


Brad, 0.5% of their standard var rate which is sort of the same with the big 4.

 

[kissfan]

Hi virgo.

Is your rate 6.91 or should that read 6.96?

Am on the same package and by my calculations, the new rate will be 6.96.

Regards
Marty

I stand corrected. I was doing my sums on W/Pac reducing 0.6 when of course they are reducing by 0.65.

My memory was actually jogged when reading a post by Rixter in another thread.

I'll shut up now.

Regards
Marty

 

[StuartW]

Hi,
Can I ask what % of discount you are getting for loan >1M ?
My fixed rate term loan is maturiing soon into var rate and my bank is only offering 0.5% discount (under one of the Professional/Choice package whatever name they call it these days). I may walk if other banks offer more discount.
Thank you,

I am tipping we are talking about NAB. They will approve 0.90% or more to retain your business.

 

[Rolf Latham]

Hiya Stu

I have found NAB prefers the client to be very close to refinancing before they offer their better rates................they tend to be very commercially minded when it comes to that.

ta
rolf

 

[StuartW]

Hey Rolf

Agreed. They need to fear that they will lose your business but that's okay. Nothing wrong with a client drawing a line in the sand and saying, given me X and I'll say.

Cheers,

 

[Tman]

i m with westpac and i can get .85 % discount from the variable rate
i have been offered from St George for .95% but i didn't join them because
i have one fixed loan with westpac...
the max you can get from westpac is .85%
you don't need to have 1 million loan to get this discount
you can get 1% discount on variable with onedirect however it costs you money whenever you want to split the loan

 

[soyabean]

Stuart and Rolf,
I did not want to name name but yes it is NAB and yes Rolf you are dead right I have had experience with them that they don't give you a good deal until you are close to refinance. It is wasting other people's time, not very nice

 

[Spectre]

NAB tell you that they cant do something then they sometimes backflip.

Why you'd deal with someone who cant be straight with you to begin with is beyond me - we get people leaving just because they cant trust what they are saying. End of the day (and we say it over and over again) its not all about rate - its about product, portfolio management, risk exposure, structure... etc etc etc.

One thing i'd wonder - out loud and I'll admit I dont know... but while its great to put pressure on the bank to get a better deal - i wonder if the overall culmination of these is why the lenders did those 'little' increases, or a percentage of, which ended up impacting everyone with a loan.

I.e. did the culmination of all of those .8's-.9's stress the margins a bit 'too much' with everyone wanting a better deal? After all, every action does create another reaction somewhere down the line we may have screwed ourselves without knowing it (which being banks I would expect could happen). I dont think anyone REALLY knows for sure but I wouldnt put it past them.

Now I'm the first person who wants a better rate but any bank or broker etc who is selling purely on rate is doing so because they dont have a hell of a lot more to offer

And soya, forgive me but owing $1m isnt hard to do... and the reasons you should be looking to diversify out of NAB would be not just rate but also a factor being the removal of the likely X Coll they've got on you and your portfolio.

 

[soyabean]

And soya, forgive me but owing $1m isnt hard to do...
not sure what you mean by this ?

and the reasons you should be looking to diversify out of NAB would be not just rate but also a factor being the removal of the likely X Coll
yes absolutely, I agree rate is not everything - I like their Portfolio Facility where you have 100% offset accounts for the LOCs
they've got on you and your portfolio

I did untangle their X Coll a few yeas back so now have a number of independent X Coll groups, not quite "all free"

 

[Spectre]

soya
where I was at...
2 IPs & some PPOR debt and you can owe $1m easily

their mortgages are all monies so good to konw you got them to do the extra paperwork to make sure theyre not crossed