Nab negotiate rate

[Michael Lee]

I agree. However, instead of bluffing, just walk and don't go back.

Totally agreed. The problem with price matching is that the broker/lender that's putting it all on the line to cut a great deal get's nothing but shopped, so over time they disappear.

Also, important to note NAB will do better deals direct if your relationship and negotiation is good enough than if going through a broker who has no influence/skill.

However if your broker has clout (this is an individual mortgage broker thing rather than a particular brand of broker, so more likely amongst smaller players), then you'll probably do better there.

 

[property_girl]

You don't have to use a broker to find out what other banks and institutions are offering. About six are offering 3.99.

 

[Peter_Tersteeg]

My bank has just pre-approved a loan for me. I told them I would like 3.99 per cent interest rate. They told me to send them the banks and institutions that were offering this interest rate and that they would see what they can do.

If you're going to tell them what a competitor is offering, it might be helpful to make it based on an actual quote. The RBA has a cash rate of 2.50%, but there's no lender with an ongoing rate of 3.99% in the market. Given their response, I don't think they're taking you too seriously.

 

[property_girl]

We'll see.

 

[Michael Lee]

Property Girl is right, 3.99% is well and truly out there, however they are intro rates that stick for about a year (some fixed, some variable) and all with some kind of condition (please educate me if I'm wrong on that).

So if your strategy is to flip or refi within a year, they may be fine, however the other part to look at is the "unascertainable fees" especially if you're in LMI territory.

It is possible that a 12 month view will work for some, but not most. I tend to talk around 3-5 years unless there is a specific requirement and only really recommend a 3 year exit calculation if you're taking a 3 year fixed rate.

 

[property_girl]

I just did a quick check and could find SIX lenders offering at 3.99.

 

[Michael Lee]

I just did a quick check and could find SIX lenders offering at 3.99.

Sure you can. You can even get a 1 year fixed from the Perm for 3.79% too, but it doesn't change the fact that you have to take a really short view and/or refinance every 12 months which is probably going to get old really fast.

It's kind of like a pre-approval, it's about getting you into the sales funnel in the hope that you'll stick around for the real profit.

 

[Peter_Tersteeg]

I just did a quick check and could find SIX lenders offering at 3.99.

You're quoting building societies with a 1 year fixed or intro rate of 3.99%, with comparison rates all well over 5%. As I said, ongoing rate.

NAB's compatible product is 4.79%. Lenders aren't quite that negotiable on their fixed rates.

 

[Michael Lee]

You're quoting building societies...

Totally agree with your point on the rate Peter (not to mention fees, concessions etc), but just wanted to clarify there's nothing wrong with Building Societies or Credit Unions just because they're not a bank. After all, APRA regulates them much in the same way as it regulates banks.

Granted some lending criteria might be tighter for smaller mutuals (but even that varies wildly), however if a mutual fits and the deals right, they're as good as a bank right?.

 

[property_girl]

3.99 is being offered for the first year, or fixed for three years.

 

[pinkboy]

3.99 is being offered for the first year, or fixed for three years.

property_girl, I'll offer you 2.99% private funding if you want.

pinkboy

 

[Kinnon Bell]

The low one year fixed rates are like credit card balance transfers of the mortgage world. They lure you in with an attractive interest rate then when the honeymoon finishes you're usually hit with a high rate and fees. You then either pay the high rate or refinance again and you're not doing your credit report any favours in the meantime.

 

[Bozley]

3.99 is being offered for the first year, or fixed for three years.

fixed for 3 years?

 

[property_girl]

Yes, one place had 3.99 for three-year fixed. I'm not saying that my bank will give it to me. I am saying that I have put it to them; they will consider. If I am not happy with the interest rate they give me, I will walk. It's bargaining. It's a bit like making an ambit claim.

 

[Rolf Latham]

A strategy of jumping ship every year does wonders for your credit file . Esp so if you have a few props you do this with every year.

Other considerations include flux in Val's, credit appetite, personal considerations and circumstances.

Managing rate and fee cost can be important , but can't be the primary focus of a wealth creation strategy.

For many portfolio builders access to right funding at the right time combined with a sensible approach to risk management will beat a focus on saving money almost every time


Ta

Rolf

 

[Rolf Latham]

property_girl, I'll offer you 2.99% private funding if you want.

pinkboy

Yes but your deposit of 100 per cent of the loan amount makes it a little silly

Ta

Rolf

 

[pinkboy]

Yes but your deposit of 100 per cent of the loan amount makes it a little silly

Ta

Rolf

No nibbles.

I was fishing for a bite.

The 2.99% offered was per month. You see, people are attracted to rate only, and can't see the catch.

but thanks for looking out for me!

pinkboy

 

[Rolf Latham]

No nibbles.

I was fishing for a bite.

The 2.99% offered was per month. You see, people are attracted to rate only, and can't see the catch.

but thanks for looking out for me!

pinkboy

Ka Ching


Ta

Rolf

 

[property_girl]

A strategy of jumping ship every year does wonders for your credit file . Esp so if you have a few props you do this with every year.

Other considerations include flux in Val's, credit appetite, personal considerations and circumstances.

Managing rate and fee cost can be important , but can't be the primary focus of a wealth creation strategy.

For many portfolio builders access to right funding at the right time combined with a sensible approach to risk management will beat a focus on saving money almost every time

I have one credit card which is always paid off. I have been with the same bank for 35+ years--the same bank my dad has been with for 50+ years. I've never 'jumped ship' nor have I ever paid for a loan application fee (in fact, I can't remember the last time I paid a bank fee). I am conservative. I get loans and pay them off as quickly as possible. I know that's not the way many people here do it, but each to their own. I have never been done a property investment course. I have never felt the need to use a broker, but then I know that my bargaining skills are pretty good and I have a good relationship with my bank.

We used a financial advisor once and he told us that he couldn't tell us anything we weren't already doing, so that confirmed we were doing things okay. We have had an advisor set up trusts and companies for us, but not give us financial advice. I am sure there are good financial advisers out there, but I wouldn't trust anyone with my money. I take my hat off to a lot of the people here who have made money quickly and taken risk. I couldn't do that. I'm pretty daggy--I am like the tortoise. I have no debt and now gross more than $100,000 from rent and I retired a while ago.

 

[Mick C]

For those interested in the bigger loans...just had 4 approved this week ( some of the biggest discount i personally have dealt with for the big 4 )

4.65% NAB - 1.2M refinance 2 properties not crossed
4.62% NAB - 1.62M Refinance and 1 purchase not crossed
4.75% CBA - 1.05M Purchase
4.69% Westpac - 1.32M refinance 2 properties not crossed

Cheers