Home loan

Hi guys,

I currently have my first home loan with commonwealth bank - which I'm more then happy with. I've recently also got a 2nd pre-approved home loan with them.

Now if I wanted to negocitate this loan with them, how do I go about this? Do I go into another bank get a pre approval with them then take it back to the commonwealth bank to beat it? or do I just negotiate without speaking to other banks?

Thanks
Nika
 
Hiya Nik

The question is a bit vague..........I assume you mean how do you negotiate a better rate than what you have been provided with. Often there are some things that are more important to some people, like the loan structure, the maximum Loan to value ratio etc

Firstly, grabbing another preapproval from another lender is probably not the way to go. Its a fair assumption that if CBA gave u a loan, then other lenders will too, and you will place more enquiries on your CRAA file and additionally waste a lenders time. You only need to do the research as to what you want, and then find out who is offering that at a better rate/cost/lvr etc. Often it isnt easy, since comparing loans from lender yo to lender z can be hard because we are comparing carrots with oranges because they are the same colour.

The best method often is to simply tell the current lender that XYZ bank has this current offer, here it is..........can you match this please.

ta
rolf
 
Rolf is right.

Assuming you are talking about negotiating a better interest rate, sometimes the interest rate is second place to what the product has to offer and what suits your circumstance.

You could ask your banker at CBA if there is another product that would suit your needs with a lower interest rate or alternatively ask them why they recommend that particular product. Put the onus back on the bank to explain your options.

Now you know why Mortgage Brokers are so handy.:)

Regards Jo
 
I have not spoken directly to a bank looking for a loan for many years. I cannot imagine having to spend an hour providing all our details to a faceless lender, only to be told that if hubby's income was $1K more per year we could get the loan we wanted. This happened with St George Portfolio Loan years ago. Turns out they use a particular guide for what a one income, three children family spends (which was so much more than we ACTUALLY spend that it was laughable).

We have used a broker for years, and would NEVER again do the ring around to the banks looking for a loan. If you want to shop around, that is probably an hour on the phone with each lender.... arghhhhh!!!!

Brokers do it and it doesn't cost us any more than if we did it ourselves. It seems banks are happy to pay a broker rather than start up another branch.
 
Now if I wanted to negocitate this loan with them, how do I go about this? Do I go into another bank get a pre approval with them then take it back to the commonwealth bank to beat it? or do I just negotiate without speaking to other banks?
Apart from Rolf's excellent point about getting multiple queries on your credit report (undesirable), going back to CBA and telling them that somebody else approved you will just make you look a bit of a prat, if you think they'll therefore try and compete for your business. (I'm assuming this is a <<$1M loan.) Banks don't even compete for multi-$M loans, particularly in this relatively tight lending environment, so just remember that you and I are - unfortunately - very insignificant to them.
The best method often is to simply tell the current lender that XYZ bank has this current offer, here it is..........can you match this please.
Agreed.
Assuming you are talking about negotiating a better interest rate, sometimes the interest rate is second place to what the product has to offer and what suits your circumstance.
Agreed, except I'd change "sometimes" to "nearly always". ;)
 
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