Discounted variable rate?

[h8dk97]

Hi there,

What's the best discount you could get these days off your standard variable if you are to refinance your loan. Someone may say it depends on the loan amount but I'm just curious to see what deals others have been able to get from the banks regardless of the amount, i.e. have you been able to get 0.8% off standard variable or better?

Thank you.

 

[h8dk97]

anyone? any mortage brokers out there?

 

[Legs]

CBA offer up to 0.7 off SVR for $350 yr fee, also gives u discounts on other fees such as Credit crad etc. Some businesses/corporations have a deal with them to waive this for 1st yr.

 

[h8dk97]

CBA offer up to 0.7 off SVR for $350 yr fee, also gives u discounts on other fees such as Credit crad etc. Some businesses/corporations have a deal with them to waive this for 1st yr.

Yes, that's their official rate and NAB has a similar offer (part of their prof. package). But can you get a better discount?

 

[Perp]

anyone? any mortage brokers out there?

I suspect you're not getting any answers because of the way you're asking your question. Who cares what discount you get; surely it's the end rate that you pay that matters?

I'd rather have 0.5% off 6.5%, than get 0.7% off 6.9%...

But even more significantly, there is a lot more to choosing a mortgage product than just interest rate. I don't know many mortgage brokers who are interested in dealing with people for whom rate is their primary concern, and that's why they probably haven't ventured into this thread.

When compared to factors such as the way they calculate servicability, max LVRs, customer service, preference for the particular asset class being purchased, fees, and how the loan sets you up for the next purchase, rate becomes pretty unimportant to most investors.

 

[tobe]

If your an investor, its not about rate, its about all those other things Ozperp went thru.


In terms of your questions, over the past 3 years or so, banks were quite receptive to giving further, under the table discounts when requested, and confronted with another banks offer. This is the case no more, in fact Banks are more likely to chase the competitors up, rather than down. They are also doing the same with credit policy, especially for first time buyers, with things like genuine savings maximum LNR etc etc.

Whatever discount you get may get eaten up the next reserve bank change when your lender doesnt pass the whole lot thru anyway....

 

[Saint]

h8dk97 - not having a go at you.

Is it me or does anyone ever get sick of the same type of rate question getting asked continually and then you get 400 responses about what rate everyones on and then who they bank with

You want a better deal - ring up the bank and ask them how you go about releasing the mortgage as you're going to refinance. Or go into the branch and give them a discharge request and see if they scurry around to retain your most valuable business. If they dont then you're ahead of the game and you can go see a broker who might give you some better advice than the buffoon at the bank.

 

[h8dk97]

Thanks all for your replies, although I didn't really get any answers. I guess I don't qualify as an investor only having 2 loans and am only looking for something like a prof. package from the big four banks. So it is important for me to get a better discount as that will have an impact on the end rate. My point of view is: who cares what the current interest rate for sv is (and that relates only to the big 4), since sv fluctuates and maybe slightly different with different banks at different times. What matters is I'll be paying less interest if I get 1% discount instead of 0.7% for example.

 

[Qlds007]

You wont get 1% discount with any lender these days irrespective of the loan amount so probably not an issue.

0.7% across the board is par for the course although these are being adjusted by lenders on anything less than $750K.

More importantly is the loan structure rather than the interest rate itself.

Flexibility is key especially with the majors.

 

[josko]

You wont get 1% discount with any lender these days irrespective of the loan amount so probably not an issue.

0.7% across the board is par for the course although these are being adjusted by lenders on anything less than $750K.

More importantly is the loan structure rather than the interest rate itself.

Flexibility is key especially with the majors.

Ditto. You need to research Cross-Collateralisation and the implications of it.

Regards JO

 

[h8dk97]

Thanks, when I visit the banks one of my conditions is no cross security.

1% was just an example, but I am hoping to get better then .7%. we'll see what happens.

 

[h8dk97]

Oh and one other thing I had in mind was to borrow as much as I can as part of refinancing and therefore get a better discount on the larger loan, when everything settles put the extra money I borrowed back into the loan. What are you opinions?
Thanks.

 

[tobe]

A lot of lenders cash out policy's have varied recently. I suggest talking to a broker and get a better understanding of all your aims and how they might be met.