Haggling with the big banks

[Marlin]

I called the CBA today to link a new account to a card and when asked how else they can help, I said I want a reduced interest rate. I was advised to find a lower rate being offered by any of the 'major' institutions and they will escalate the request to their retentions department. I'm currently paying 5.1% variable rate and no fees.

Sooooo.... I understand there are lower rates through the many brokers out there... But if I have to provide objective evidence to the bank it's a little more challenging. From my experience it's usually about haggling based on the current loan value and circumstances. Yeah sure I can find 5.05% etc but it's hardly worth the head ache. What's out there at say 4.9% or are there any other suggestions or experiences to get more out of them?

 

[Corey Batt]

What is your current $ value of borrowings and LVR?

 

[Brady]

Recently helped another SS get 4.78% variable, as mentioned by Cjay all depends on the LVR and borrowing amount.

 

[oracle]

Recently helped another SS get 4.78% variable, as mentioned by Cjay all depends on the LVR and borrowing amount.

What's the minimum loan balance and LVR you need to be able to get a similar rate?

Cheers,
Oracle.

 

[Brady]

What's the minimum loan balance and LVR you need to be able to get a similar rate?

Cheers,
Oracle.

Loan balance was >$1M LVR <80% loan also needs to be more >12 months old

 

[oracle]

Loan balance was >$1M LVR <80% loan also needs to be more >12 months old

Thanks Brady

Cheers,
Oracle.

 

[Aaron_C]

CBA have some good discounts going on right now, just have to ask...mainly for sub 80% loans though.

 

[Rolf Latham]

if your primary concern is rate and youare willing to do the work, try some of the online only lenders like loans.com.au

4.75 is achievable with cba at 80 % lvr

Obviously thats NOT for a 500 k loan

ta
rolf

 

[Marlin]

LVR is 55% and balance is $340k. There is another loan with the bank too. This equate to $400k. With LVR of 45%.

 

[D.T.]

Surely the rate makes stuff all difference?

Id rather consider lenders policy, how it fits within the realm of my investment plans, quality of product, etc, before saving $50 a month.

 

[Marlin]

Surely the rate makes stuff all difference?

Id rather consider lenders policy, how it fits within the realm of my investment plans, quality of product, etc, before saving $50 a month.

.3% makes $1020 difference on $340k. Personally I'd notice this missing from my bank account. I take your point though the interest rate is not everything.

 

[catsteve]

I had the same conversation with a bankwest rep on the phone. I told him i had been looking at rolling everything over to Suncorp (check them out rates as low as 4.79%).

He sounded distressed and had retentions call me that day. i had new rate docs sent to me within days. it was worthwhile for me as i had been a little slack in keeping on them about my rate. i think i knocked about .5% off for very little work.

 

[keithj]

What's the best Fixed Rate discount that people are getting from CBA at present ?

Their Wealth Package gives an automatic 0.15% discount, and it's wasn't hard to get an extra 0.05% last time.

Or will they match others rates if pushed ?

 

[D.T.]

.3% makes $1020 difference on $340k. Personally I'd notice this missing from my bank account. I take your point though the interest rate is not everything.

1020 per year, which is 85 a month

 

[Marty McDonald]

I know rate is important but have to laugh at how everyone looks at it from a "compared to them" mentality.

Imagine for a sec the RBA cash rate was 4.0% and you were paying 5.50% with most punters paying + 6.00%. You'd be over the moon with your rate even though that's more than you pay now!

 

[Brady]

LVR is 55% and balance is $340k. There is another loan with the bank too. This equate to $400k. With LVR of 45%.

Marlin if you want help with lower rate shoot me a PM with your email.

 

[sash]

2 of my loans are with CBA and come off a 5.99 fixed rate on 28 March 2014.

Called the bank today when I saw this post and they will automatically revert to a 4.9% I/O rate.

All my loans were taken up a 5%-10% deposit plus LMI capitalised loans 3-5 years ago. Total lend with CBA is $940k odd (not counting amount in offsets).

If you have over 500k in borrowings you should able to get 0.9% off.....over 750k I think it will be possible to get 1% off like me.

I called the CBA today to link a new account to a card and when asked how else they can help, I said I want a reduced interest rate. I was advised to find a lower rate being offered by any of the 'major' institutions and they will escalate the request to their retentions department. I'm currently paying 5.1% variable rate and no fees.

Sooooo.... I understand there are lower rates through the many brokers out there... But if I have to provide objective evidence to the bank it's a little more challenging. From my experience it's usually about haggling based on the current loan value and circumstances. Yeah sure I can find 5.05% etc but it's hardly worth the head ache. What's out there at say 4.9% or are there any other suggestions or experiences to get more out of them?

 

[ardi]

I am also with commbank. Have about $950k debt with them and approximate value of $1.25M. Am currently paying 5.05%. I want to borrow for another IP, can i do better on these rates???

 

[Peter_Tersteeg]

I am also with commbank. Have about $950k debt with them and approximate value of $1.25M. Am currently paying 5.05%. I want to borrow for another IP, can i do better on these rates???

Without even negotiating you should be able to get 4.90% - this is their current published offering, not a special deal.

With another purchase 4.80% would be on the cards, possibly better.

 

[Brady]

I am also with commbank. Have about $950k debt with them and approximate value of $1.25M. Am currently paying 5.05%. I want to borrow for another IP, can i do better on these rates???

Again shoot me a PM if you would like me to assist.

As mentioned by Pete a better rate shouldn't be an issue. (didnt see a mention of LVR)