Discounts on home loan, any one got above .7
- Thread starter apk
- Start date
Got 0.75%
Hey,
I got 0.75% discount on my variable loan with SGB. Our total loan with the bank is 785K.
Cheers
Hey,
I got 0.75% discount on my variable loan with SGB. Our total loan with the bank is 785K.
Cheers
As of today morning 0.9% discount across the board for all loans with ANZ (including the existing loans pre-19th Dec)
I didn't think I was the only one who got a great deal 450k loan with bankwest, 0.9% off the average of the big 4 banks so iirc (before today's rise) 5.73%. same as their old rate tracker ultra offer, but forever not just a 3 year honeymoon period.
If I were to somehow get the same 0.9% off NAB's rate that'd save me 0.14% p.a. = $630 a year, in reality much less than that because of my offset. Cost of changing would cancel out that benefit at least for the first year. Pretty happy with bankwest atm
450k loan with bankwest, 0.9% off the average of the big 4 banks so iirc (before today's rise) 5.73%. same as their old rate tracker ultra offer, but forever not just a 3 year honeymoon period.If I were to somehow get the same 0.9% off NAB's rate that'd save me 0.14% p.a. = $630 a year, in reality much less than that because of my offset. Cost of changing would cancel out that benefit at least for the first year. Pretty happy with bankwest atm
What a great thread and ammo/inspiration to help others get better deals.
I'm with St G and have had an 8% discount the past two years. It changed to 9% via a loan increase to take me to $1M. I'm currently working with them and NAB to try get a better deal. STG have waived all fees so far as well.
My first experience with NAB wasn't so great. Only offered 7% and insisted on taking my STG loans. Have seen someone else now who promises to better STG so we shall see.
I'm getting over it and wish I'd used a broker now but feel it's almost too late.
I'm with St G and have had an 8% discount the past two years. It changed to 9% via a loan increase to take me to $1M. I'm currently working with them and NAB to try get a better deal. STG have waived all fees so far as well.
My first experience with NAB wasn't so great. Only offered 7% and insisted on taking my STG loans. Have seen someone else now who promises to better STG so we shall see.
I'm getting over it and wish I'd used a broker now but feel it's almost too late.
Hi Marty,
Just tried today so will let you know how I get on. I asked for 110bp for life with WBC. Might not get it but 0.9% isn't good enough.
Cheers,
Michael
I have 0.2 additional discount on 250K loan for couple of weeks. I called mortgage retention centre today and they promised .05 permanent discount once the .2 temporary expires, waiting for the paperwork.
So now I am on .75 discount on 250K loan. I am with banana bank
Regards
apk
I guess one of the costs of safety is not being able to negotiate the best discounts. I don't like having more than $1m with any 1 lender, though I realise that if you have $3m with one lender it would be a stronger negotiating position. Still, I wouldn't do it for an extra 0.2%. (Almost all my loans are fixed so in my situation this doesn't work but you get my drift).
thats because u innately understand that while u know what the financial saving is quantified, the downside risk is pretty much unknown and not quantifiable.
To each their own obviously, but to me, making such an assessment and to come out in favour of the financial saving is often a blind sided decision........
That same negotiation power on pricing, can be a problem when the chips are down, which at some point they may well be, at which point a power reversal has occcured.
ta
rolf
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
Hiya BZV
of course they tell u that
.........most lenders finally have centralised pricing and credit. Even the much touted WBC local pricing thing, if there isnt 20 % ROI on the deal, the branch's P&L is shot and there goes a chance of any decent negotiation room.Lenders have budgets to meet too...............its so cute when the in house lender feels their cost to their business is nil
The Chair they sit in is free
Their salary is free
Their Super is free
Their Sick leave is free
Their annual leave is free
Their Long service leave is free
The Real estate they work in is free
The outgoings on the real estate are free
Their company hack is free
Their training is free
Their bonus is free
Their acquistion cost is free
The true proftiability of the 3rd party channel vs direct is without doubt, otherwise most financial institutions wouldnt work with them.
All joking of course...........but in the scenario described one thing is free. The apparent marketing and client acquistion cost is free, after all the banker has effectively used the brokers marketing and acquisition, since the client literally walked into the branch
2 tier pricing isnt unusual, especially when the lender can coax a max contribution structure from you for the extra 10 or 20 pts.......buts its becoming less common.
ta
rolf
Not always the case... Approaching the bank directly, they offered me 0.77%. The broker got me 0.85%.
Maybe I need work on my negotiating skills!
Maybe the broker knows who to talk to and what to say.
I also got a good deal when I used a broker but that was when I only had a couple of IP's with each lender.
When you've got over a mill loans with them they either hate you or they love you (depending on your LVR level)
Good broker will know who to talk to, I was offered .77 but sent my broker back for more recently and she got my PPOR to have a .97% discount and most of my investment properties sit at .86%. Just pushing another property through at the moment and have asked her if she can get my PPOR over 1%, she said she had to beg to get it to .97 and my response is get them to justify again how tough it is out there when they are making billions of dollars profit and I am trying to save a couple of dollars a month.
If you go direct to a bank though, a friend of mine ( has a $400 k loan) has got .90% discount by getting all comparision loans and going to the bank manager that signed her up, they offered .75, so she rang the retention team they were willing to go to .80 %, so she got in touch with the home loan office and got them to send out the documentation to cancel the loan. At this point the original bank manager got back in touch with her and was able to get it to.90%. It did take her about a month.
Remember if you are on a variable and you think you can get a better offer elsewhere it only costs between $1.5k - $2k to break the loan. Work out how long it would be on the new rate to see how quickly it will be until your infront.
Morale of the story: Treat banks no differently than you would if you were to walk into Harvey Norman to buy a Fridge, you would never pay them full price so why would you not do it with a bank.
Jezza
If you go direct to a bank though, a friend of mine ( has a $400 k loan) has got .90% discount by getting all comparision loans and going to the bank manager that signed her up, they offered .75, so she rang the retention team they were willing to go to .80 %, so she got in touch with the home loan office and got them to send out the documentation to cancel the loan. At this point the original bank manager got back in touch with her and was able to get it to.90%. It did take her about a month.
Remember if you are on a variable and you think you can get a better offer elsewhere it only costs between $1.5k - $2k to break the loan. Work out how long it would be on the new rate to see how quickly it will be until your infront.
Morale of the story: Treat banks no differently than you would if you were to walk into Harvey Norman to buy a Fridge, you would never pay them full price so why would you not do it with a bank.
Jezza
With most lenders this is a load of hog wash. Sure the broker gets their cut but the lender doesn't need to pay an ongoing salary/super to a broker. On top of this most banks (if not all) grade their branches on profitability. Branches make their money/contribute to the banks profit from collecting fees, opening accounts, Funds Management, Insurances, minimising loses and interest rate margins to name a few. By providing extra rate discounts off lending facilities impacts on the later. You will also find that branches don't have the abilty to approve rate discounts. Most send a request to the same pricing department as a broker does.
Regards
Steve
