Loan Term Renewal - thru broker or just ring CBA?

[Michael.Knight]

Hi,

My loan is up for renewal. Do I ring the bank to negotiate the terms (want to keep at IO), or do I ask the broker to do it?

I thought brokers were for establishing a mortgage, not for renewing one?

Thanks guys...

 

[BayView]

If you have been using a broker previously, the CBA will usually want to deal with him/her.

Let them make the preliminary negs for you, and if you are not happy with their outcome, then try yourself.

Once you get past a certain dollar amount of debt (I don't know what it is off the top of my head) with CBA, you are in the hands of a Personal Manager (not the correct term but can't remember that either) and they do all the to-and fro through the Broker only.

 

[Rolf Latham]

Hi,

My loan is up for renewal. Do I ring the bank to negotiate the terms (want to keep at IO), or do I ask the broker to do it?

I thought brokers were for establishing a mortgage, not for renewing one?

Thanks guys...

Most brokers will do maintenance work that is "allowable".

depending on ur mortgage it could be as simple as going onto your Netbank and requesting a change to IO.

It could also involve a switch or a misc app if there are high LVRs or unusual securities involved.

ta
rolf

 

[jonmardell]

Hi,

My loan is up for renewal. Do I ring the bank to negotiate the terms (want to keep at IO), or do I ask the broker to do it?

I thought brokers were for establishing a mortgage, not for renewing one?

Thanks guys...

if you are happy with your brokers initial work and continual management then go back through them.

 

[beachside]

Good luck with simply getting it changed back to IO. My broker advised I would have to reapply with full financials (which I did not want to do) so tried various tactics with ANZ - NO NO NO NO NO!!!!!

If I had taken a different product with minimal higher interest rate I would have been fine indefinitely - but that is with the benefit of hindsight. The new lending laws stuffed up simply asking for a new IO period.

Re broker or going straight to bank, I think the broker might only be able to get you the default rate, where as I found speaking with a few bank managers they were freely willing to try and get me a better than standard rate (obviously a benefit to them to get your business / new contract). I was already on a package discount but the manager of the bank where my loan is (originally arranged through a broker) got me a further .2% discount.

 

[Peter_Tersteeg]

Beachside under ANZs policy switching to IO (or reestablishing as IO), is a credit critical decision, so they do require you to re-apply via a full application. They do this for both broker and branch channels. Quite a few lenders have similar policies.

The CBA generally makes it a bit easier, but they do request that borrower go back to their broker.

Brokers can also access the same discounts as direct bankers.

 

[Aaron_C]

Re broker or going straight to bank, I think the broker might only be able to get you the default rate, where as I found speaking with a few bank managers they were freely willing to try and get me a better than standard rate (obviously a benefit to them to get your business / new contract). I was already on a package discount but the manager of the bank where my loan is (originally arranged through a broker) got me a further .2% discount.

That's simply untrue. Both the branch and broker channels have access to the same discounts.

 

[Terry_w]

Good luck with simply getting it changed back to IO. My broker advised I would have to reapply with full financials (which I did not want to do) so tried various tactics with ANZ - NO NO NO NO NO!!!!!

ANZ policy changed on this just last week.

 

[Rolf Latham]

If I had taken a different product with minimal higher interest rate I would have been fine indefinitely -.

LOCs have their chinks too...........

understand that "repayable" on demand or repayable in 30 days clauses mean just that ......

ta
rolf

 

[beachside]

ANZ policy changed on this just last week.

Do tell

That's simply untrue. Both the branch and broker channels have access to the same discounts.

Yes, but I think brokers (not all) probably accept what they are told when they ask for best deal - and do get a good deal, whereas the managers I spoke to (one in particular) would go further and said he would try and get me the dearer product at the same discount I had on my current loan - which was at maximum discount - that normally applied to bigger loans. My business is small so I don't have the bargaining power of bigger investors.

So, one phone call to the manager of the bank where my loan is got me .2% further discount that my broker had never tried to get - even after discussing the IO issue in detail a few times. I guess it comes down to the broker and knowing the guidelines which can be broken.

 

[beachside]

The CBA generally makes it a bit easier, but they do request that borrower go back to their broker.

How can they do this if ANZ wont - who are following strict lending guidelines which I would have though applied to all lenders. Ah... Credit Critical Decision, I have heard that a few times

I have an IO loan with CBA - 2 years to go. Should I try and get it updated now in case something else pops up and guidelines are changed. What would they require from my broker.

 

[Terry_w]

Do tell

Going from memory... as long as your circumstances have not materially changed you may be able to do this in a branch - ie extend an IO term.

 

[Jamie M]

How can they do this if ANZ wont

Welcome to the world of banks.

They all have their different policies/processes - some make sense, some don't.

Cheers

Jamie

 

[Rolf Latham]

Welcome to the world of banks.

They all have their different policies/processes - some make sense, some don't.

Cheers

Jamie

Jamie, you know as well as I do that it much depends sometimes what day of the week it is.

on the right day, certain policies are just guidelines, on other days those policies are rigid as tram tracks.

Your guess which day is which : )

ta

rolf

 

[Jamie M]

Jamie, you know as well as I do that it much depends sometimes what day of the week it is.

on the right day, certain policies are just guidelines, on other days those policies are rigid as tram tracks.

Your guess which day is which : )

ta

rolf

All I know is that each day generally involves a few (ok, maybe quite a few) swear words and the odd palm hitting forehead motion.

Cheers

Jamie

 

[Aaron_C]

All I know is that each day generally involves a few (ok, maybe quite a few) swear words and the odd palm hitting forehead motion.

Had a few of those today. One credit analyst approves a deal on Monday. Second deal with similar numbers comes by 2 days later and they say it doesn't service! Arghhhh!

 

[Jamie M]

Had a few of those today. One credit analyst approves a deal on Monday. Second deal with similar numbers comes by 2 days later and they say it doesn't service! Arghhhh!

Yep - it's frustrating when two assessors working for the same bank provide different outcomes for similar deals.

Cheers

Jamie

 

[your broker]

Re broker or going straight to bank, I think the broker might only be able to get you the default rate, where as I found speaking with a few bank managers they were freely willing to try and get me a better than standard rate (obviously a benefit to them to get your business / new contract). I was already on a package discount but the manager of the bank where my loan is (originally arranged through a broker) got me a further .2% discount.

Beachside yes there may be brokers out there who are more than happy to just go with the norm. However as a general rule I think you'd find a lot more brokers out there trying to get the best possible deal for their clients, than bank managers.

CBA has quite an easy process to revert back to interest only on the loans. Also the most recent one i did as a broker i managed to get .95% off the variable interest rate for the client whilst the bank manager was offering to try to get a maximum of .8% off.

regards
Dustin McMahon
[email protected]