Discounted interest rate on $1M IP loan

[Honey]

Hi all,

I am new to this website and would like some help with regards to talking to the bank about improving the discounts on the interest rate we are being offered.

Currently I am in negotiations with my bank and am trying to achieve the highest discounted loan possible off the std variable rate. I have been offered 95 basis points off so I was wondering whether it is possible to do better than this. The total borrowowings are about $1.5M. Can anybody offer any solutions or suggestion on negotiating techniques with the bank.

 

[JIT]

Hi all,

I am new to this website and would like some help with regards to talking to the bank about improving the discounts on the interest rate we are being offered.

Currently I am in negotiations with my bank and am trying to achieve the highest discounted loan possible off the std variable rate. I have been offered 95 basis points off so I was wondering whether it is possible to do better than this. The total borrowowings are about $1.5M. Can anybody offer any solutions or suggestion on negotiating techniques with the bank.

Hi Honey,

That's a good discount.

But which bank are you dealing with?

NAB will give you the lowest rate with that kind of discount.

Thanks.

 

[Bradsdad]

0.95% sounds OK on the surface but as mentioned, it depends on who the lenders is as their standard rates vary.

 

[dl2276]

I obtained 95 basis points off and with St George. Total borrowings was about the same as you.

But any discount is only as good as what the base rates are.

I remember there was a thread on this topic so might be worth doing a search..... I would do the search but not up to speed on how to do it !

 

[Spectre]

I obtained 95 basis points off and with St George. Total borrowings was about the same as you.

But any discount is only as good as what the base rates are.

I remember there was a thread on this topic so might be worth doing a search..... I would do the search but not up to speed on how to do it !

at the top, under the 'search' tab. or just scroll through as someone usually sticks something on every month

 

[Steve Basin]

Why not go to a mortgage broker, and let him or her do the leg work. Refinance the loans to a different bank if they make it worthwhile for you.
You got nothing to lose....

 

[Rolf Latham]

Hi Honey

As an aside.............

If you have multiple loans with other lenders, then 1.5 mill with the one lender is probably not an issue. Go and chase rates and fees.

If your 1.5 is all your borrowings, and u are somewhere near the banks limit, then rate should be the least of your issues

ta
rolf

 

[Honey]

Hi everyone,

Thank you for all your reply. We have dealt with a few Mortg broker but finds that we weren't getting as much discount compared to us approaching the bank directly.

But now, I'm really worry, cause hubby want to stick with the same bank for another loan. Although, each loans is set up as a stand alone. I'm wondering since the bank got him hooked, that's the reason why they don't want give us any further discount.

Rolf- How do I go about chasing the rates? We are paying some kind of annual fee for the prof package that we're on.

 

[Rolf Latham]

Hi Honey

Without knowing some core data details, its hard to provide any real comment or indeed help. Wed need to know what lender for a start please

I think u have identified your own concerns that rate is probably not your core issue right now.

ta
rolf

 

[Honey]

Hi Everyone,

It's very hard to find the thread that I posted.
We're with Westpac. I have contacted my bank and the discharge fees for 2 properties which we have with them less than 3yrs is too much for us to leave. So guess we're stuck with them for the time being also for this new loan or are we're better with another bank?

How can I neg it better with the MB about the discounted rate?

Any suggestion how you guys go about asking for a better rates?

Many thanks,