Is this a good deal ?

Hi all, I am new to the forum and hope can get some professional advice.

I am going to refinance my investment and resident property with a total loan amount of 1 million (80%). I was offered by one NAB banker who offered me 4.12% variable with interest only option in a package which she indicated that she will waive it as long as I am with them. However, she said she will not be able to offer the $1000 rebate due to the fact that my loan is IO. I am not sure whether this is NAB's policy as this is the first time I deal with NAB. Is this considered to be a good deal? I need to revert before this Wednesday.

BTW, my current bank, CBA offered me a higher rate 4.22%, the rate is not that bad but the package fee just kills, I talked to them, seems no one is keen to waive it for me.
 
Would had thought deals like this would had ceased to exist since last Friday/

Do you know if NAB is cross collaterizing your loans?
 
Did NAB said waive the package for the first year only or for the life of the loan ?

I think it's a good deal.

From my experience, I found NAB is much sharper in term of pricing than CBA.
 
NAB has been ordered to stop offering "outside the box " discount for IP as of today.

However they will still honor any that has a written confirmation in place from last week.....today we have been busy converting 6 NAB pipeline deals into application hovering around the 4.12-4.20%, all 6 has been honored.

CBA diff story...

Westpac and ANZ already has plans in place to follow, soon...like really soon.
Same as macq.

Sad sad day for investors :(
 
Did NAB said waive the package for the first year only or for the life of the loan ?

I think it's a good deal.

From my experience, I found NAB is much sharper in term of pricing than CBA.

Thanks, I think I will accept the offer. The banker said she has the authority to waive the package fee and will do so in the future. I trust her words.
 
NAB has been ordered to stop offering "outside the box " discount for IP as of today.

However they will still honor any that has a written confirmation in place from last week.....today we have been busy converting 6 NAB pipeline deals into application hovering around the 4.12-4.20%, all 6 has been honored.

CBA diff story...

Westpac and ANZ already has plans in place to follow, soon...like really soon.
Same as macq.

Sad sad day for investors :(

Thank you, good to know the background story
 
Thanks, I think I will accept the offer. The banker said she has the authority to waive the package fee and will do so in the future. I trust her words.

How long will she continue to be there? I would make sure you get this in writting from them and maybe their manager, wouldn't be surprised if they don't have the authority to waive a annual fee for the 'life' of the loan... fairly big waiver in the long run.

Would hate to see you refinance for the specific reason of the annual package fee and it not be honoured, especially as you're refinancing over for $1,000 in interest savings which you will pay more in discharge and registration costs.

How long is your interest only period, will you be wanting to go IO again after the original period expires? Do you know NABs policy on this?
 
How long is your interest only period, will you be wanting to go IO again after the original period expires? Do you know NABs policy on this?

Brady has a very valid point here - NAB require a full application with valuation for IO extensions, plus they aren't keen on IO for PPOR. This can be a pain in the butt at best, and a disaster at worst - I have a client who has property in Gladstone, and only has 2 years left IO before he has no choice but to start paying P&I.

Unless the value of the property rises significantly, he has no room to move.

It's these 'small' things that usually get ignored that end being far more expensive than any rate discount or package waiver could ever be.

It's not just the money - it's also the lost opportunity.
 
the difference in costs fees and charges is known

the cost of potential lost opportunity, potential stress etc is open ended.

will this actually work for your future goals, or are the goals to get the lowest cost product , in which case an on line only lender will be a better solution.

A "good deal" always needs to be looked at in the context of past issues, current resources and future aspirations.............

So whats the wise thing to do ?

ta
rolf
 
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