Discounts on home loan, any one got above .7

[tobe]

OMG, the bank manager (sales person) told you you would get the best discount through him? and made out brokers couldnt get as big a discount?
Why would he say that unless it was true?

Quote:
Originally Posted by BV
If you did, the broker would be getting his cut so there will be less room for the bank to move.

In cases where you want to get the max discount possible you've got to be dealing with the lender direct and to have all of your loans taken directly with them and not through a broker.

I don't know if this is true with all lenders but that's what I was told by a lending officer when I questioned the 0.9% discount





Unless, Maybe he was trying to win a sale? Maybe thats what his manager told him to say to clients that are rate focussed and mention brokers? Perhaps he gets paid a bonus on the volume of loans he writes each month?
Or perhaps he hasnt written any loans for the last 3 months and is about to lose his job and so will tell anyone anything in order to get a sale?

 

[jerky]

I asked for 5.25% on my PPOR two days ago off the back of this thread actually! ...my bank manager said they had to submit it for approval...so Im waiting...waiting....waiting....

I have just over 800k with them, and mentioned i might like to continue to do more investment with them so lets hope they can come back with a good reply

 

[Bradsdad]

I asked for 5.25% on my PPOR two days ago off the back of this thread actually! ...my bank manager said they had to submit it for approval...so Im waiting...waiting....waiting....

I have just over 800k with them, and mentioned i might like to continue to do more investment with them so lets hope they can come back with a good reply

5.25%??????????? Good luck with that one

 

[tigerGT]

yeah let me know how you go so i can swtich too!

 

[jezza]

I have alwayas said a mortgage secured loan isnt like buying a fridge

ta
rolf

Rolf

Its exactly like buying a fridge, my fridge just ticked over 18 years

My point is that if you don't ask for a discount you definitley won't get it, the important thing to know is work out what discounts are available out in the market and when you ask have a few valid points to back up your arguement.

Jezza

 

[jerky]

Well, I didnt get my 5.25% (no surprise), but I did get offered 5.98% across all my 6 loans, 5 of which are I/O. I think thats not bad...what do you reckon?

 

[Bradsdad]

Not too shabby.

 

[jerky]

Thanks Bradsdad

 

[birchcorp]

I generally find at about 700K, discounts become applicable (they range from 0.75 to 0.95% for larger loans).

 

[tess85]

Thanks for that, birchcorp.

We approached our bank a few months back asking for a discount but we only had 1 loan with them around the $500k mark, and they told us to go away.

Now we have 3 loans with them around the $850k mark, so is it worth calling up again? 2 of the loans are fairly new (< 6 months old). I've heard that the bank will probably not offer a discount because they know you can't walk away without incurring fees for refinancing within the first 2-4 years of the loan?

Cheers

 

[mary&mat]

Hi all,

Wasn't aware til reading this forum that I could just call up & get more of a discount...so thanks to all contributers for sharing!

Contacted Westpac yesterday. Currently on 0.7 discount (Premier Pkg).
Got discount up to 0.8 (& 0.95 on LOC).
Loans: 275 (incl 35K LOC) my name only, PPOR loan with partner 410K.
They won't add his seperate loan for 296K onto our total borrowings b/c it's just in his name so I felt I couldn't put up a case for more.
Was I too soft...I'm still learning how to negotiate as I'm a bit of a softy

 

[Qlds007]

Hate to say 0.8% off SVR with Wesuck is like 0.4% off with every other lender.

You can do a lot better.

 

[mary&mat]

Hi Qlds007,

Haven't really negotiated with the bank before so I appreciate your insight...& yes, Westpac is Wesuck these days.
Do you have any advice on how to negotiate more off the rate considering they said my individual borrowings & my partner's borrowings won't be looked at together as we have some properties in just our single names?
Thanks

 

[tobe]

You could try suggesting another lender combine your seperate borrowings for their pricing?

 

[euro73]

You'll find this pretty difficult if the properties are in individual names.

The bottom line is that since the GFC you cant ever know what the "BEST" rate is. There's no such thing. The goalposts move too much. For example- prior to the GFC the major banks Standard Variable Rates used to basically move in unison but they no longer do. So in the past a 0.9% discount from Westpac was a cheaper rate than a 0.8% discount from NAB for example. Now, a 0.9% discount from Westpac is dearer than a 0.8% discount from NAB. To varying degrees they all failed to pass on all the RBA decreases and in some cases have increased over the RBA , so we have a situation now where the majors SVR's are all over the place. So for the moment NAB is cheapest but only below 75% LVR, and Westpac is dearest. But in the end all the banks will follow Westpac in pushing rates up because they all face the same funding costs over the coming year or two.

Anyway, the lender with the best rate today may also be the lender with the lowest LVR, or the lender with the strictest cash out policy, or the lender with the least generous borrowing capacity.

If you want to be aggressive on rates, do so on your Owner Occupied PPOR, but for investment properties it should probably be all about borrowing capacity and flexibility. Particularly if you want to grow your portfolio.

Just as an aside though, you can get a 5.96% 100% Offset for balances as low as 50K with several mortgage managers.

 

[Rolf Latham]

Nabs pricing position is temporary but possibly not due to cost of funds.

Unlike WBC and to a lesser extent CBA, NAB doengt have a huge chunk of the mortgage market, hence the agressive growth due to cost.

Causing a bit of a "rate bubble" in terms of service levels though

ta
rolf

 

[Kenster]

Nabs pricing position is temporary but possibly not due to cost of funds.

Unlike WBC and to a lesser extent CBA, NAB doengt have a huge chunk of the mortgage market, hence the agressive growth due to cost.

Causing a bit of a "rate bubble" in terms of service levels though

ta
rolf

Rolf, I find your comment quite cryptic.

Are you saying NAB offering of lower effective variable rate is because they want to increase market share?

Ta

 

[Rolf Latham]

Rolf, I find your comment quite cryptic.

Are you saying NAB offering of lower effective variable rate is because they want to increase market share?

Ta

yes...................Im starting to write like bank spin doctors............

 

[MC1]

Nabs pricing position is temporary but possibly not due to cost of funds.

Unlike WBC and to a lesser extent CBA, NAB doengt have a huge chunk of the mortgage market, hence the agressive growth due to cost.

Causing a bit of a "rate bubble" in terms of service levels though

ta
rolf

Service and a lot of their policy is shocking.

Once their rate comes in line with the other majors, they will lose market share once again.

 

[Spectre]

Nab homeside currently has about 5% of the broker market. a year ago it was 2.5%.
They're aiming for 15% inside of the next year. My discussions with them are that yeah the rate may be temporary but make use of it while you can.