NAB with 6.97% variable rate

M

MohanWei

Hi all,

At present loans of both own house and IP is with NAB with total outstanding around $470K. When I called brank manager (my loan is with branch), and told him that I might go over to someone elseho can offer less than 6.97%, he replied to go and he can't help it.

In terms of equity, $350K (own house) + $250K = $600K

I am happy to shift to other bank for own house or both.

My question is, what are my options? Any feedback is mu appreciated. Thanks
 
HomeSide, broker channel for NAB would do 6.85% with cheaper fees than NAB for the deal you've described. Several other lenders would also do a bit better.

The irony is that NAB started the current pricing war, but IMO they're currently loosing it. I am a little supprised that they haven't offered you better.
 
When it's a race to the bottom it's anybody's game. Problem is NAB has been at the bottom for quite a while so they've had smaller margins for longer than their competitors.
 
Hi Mohan

Whats the END game, what are you really looking for here ?

Is it just rate, for if it is, the direct lenders and broker market wont be able to add any value to your needs.

Its like saying I want to buy a new car.............with 4 wheels and price being the sole consideration...........youd never do it, so the same often applies to loan products

ta
rolf
 
I'm very surprised that they aren't willing to better this rate and would be even more surprised if they didn't if they received a discharge form from another lender. At that point IMO it's too late as they've had their chance.

As mentioned Homeside maybe an option as well as some other lenders. before worrying about the rates available though, you need to ensure that another lender can meet your needs by way of product.

I did note you other post in regards to the 2 properties being crossed. If you are seriously considering moving your loans I would hold of on paying the NAB anything to un-cross them. This can be done by way of the new loan structures with the new lender and NAB doesn't need to be involved.

Regards
Steve
 
Bradsdad said:
I'm very surprised that they aren't willing to better this rate and would be even more surprised if they didn't if they received a discharge form from another lender. At that point IMO it's too late as they've had their chance.
Click to expand...

And hererin lies a not uncommon problem for some brokers, especially with NAB . They often wont move until there is a counter offer on the table in the form of a loan approval............or even a discharge request.

At that point they then roll over with whatever what was needed, rate or credit issue etc ...............

In the process the broker that has done the work gets cut out of the transaction.....................often with big COSTS to get the transaction to a point where the existing lender needs to move

Many borrowers at this point will go for Convenience over "whats right", which is sad.

ta

rolf
 
Rolf Latham said:
And hererin lies a not uncommon problem for some brokers, especially with NAB . They often wont move until there is a counter offer on the table in the form of a loan approval............or even a discharge request.

At that point they then roll over with whatever what was needed, rate or credit issue etc ...............

In the process the broker that has done the work gets cut out of the transaction.....................often with big COSTS to get the transaction to a point where the existing lender needs to move

Many borrowers at this point will go for Convenience over "whats right", which is sad.

ta

rolf
Click to expand...

that is why u just send in the discharge to nab without doing any work, suddenly .2% or .3% comes off
 
Rolf Latham said:
And hererin lies a not uncommon problem for some brokers, especially with NAB . They often wont move until there is a counter offer on the table in the form of a loan approval............or even a discharge request.

At that point they then roll over with whatever what was needed, rate or credit issue etc ...............

In the process the broker that has done the work gets cut out of the transaction.....................often with big COSTS to get the transaction to a point where the existing lender needs to move

Many borrowers at this point will go for Convenience over "whats right", which is sad.

ta

rolf
Click to expand...


IMO if a broker does the work and gets cut out at the end then he's got every right to invoice & pursue the client for time at a set figure/rate as per the client agreements.
 
I agree there is more to the loan than the rate.. just thought I'd ask the question. What NAB variable rate (cumulative) should I be on for these 3 loans combined?

Loan A - $245k (currently 7.07%)
Loan B - $277k (currently 6.97%)
Thinking of bringing over Loan C - $273k (currently 7.08%)*

What deferred est costs does NAB cover in bringing over a new loan?

*Loan C doesn't have a broker's commision attached to it ;)

Thanks :)
 
vbplease said:
*Loan C doesn't have a broker's commision attached to it ;)

Thanks :)
Click to expand...

Thanks for bringing that up

ahh, that old chestnut : )

Of course the branchies dont consume resources, energy, work space, marketing .........they dont even produce much CO2.


I know there is an argument that even within lenders that branchies are a fixed cost, so any loan not brought in via the 3rd party network is at a higher margin, and thus can be discounted more heavily.

Certainly at least recently the spread is either much smaller, or non existent

ta

rolf
 
vbplease said:
I agree there is more to the loan than the rate.. just thought I'd ask the question. What NAB variable rate (cumulative) should I be on for these 3 loans combined?

Loan A - $245k (currently 7.07%)
Loan B - $277k (currently 6.97%)
Thinking of bringing over Loan C - $273k (currently 7.08%)*


Thanks :)
Click to expand...

what is the LVR, and what is the primary purpose of the move ?

ta
rolf
 
Rolf Latham said:
I know there is an argument that even within lenders that branchies are a fixed cost, so any loan not brought in via the 3rd party network is at a higher margin, and thus can be discounted more heavily.

Certainly at least recently the spread is either much smaller, or non existent
Click to expand...

The last 'independant' study comparing branch and mobile banker vs broker costs to lenders suggested that the broker channel was slightly more cost effective.

Serveral lenders such as ING or Advantage based lenders (ChoiceLend, PlanLend, FastLend all ultimately funded by NAB) are compeditive despite relying almost 100% on the broker channel.

Bank Of Queensland and RAMS are compeditive but not definitely not market leading despite only using their branches as a distribution network.

Brokers don't work for free and ultimately it is the consumer who pays, but I don't think we're a more expensive business model.
 
PT_Bear said:
The last 'independant' study comparing branch and mobile banker vs broker costs to lenders suggested that the broker channel was slightly more cost effective.

Serveral lenders such as ING or Advantage based lenders (ChoiceLend, PlanLend, FastLend all ultimately funded by NAB) are compeditive despite relying almost 100% on the broker channel.

Bank Of Queensland and RAMS are compeditive but not definitely not market leading despite only using their branches as a distribution network.

Brokers don't work for free and ultimately it is the consumer who pays, but I don't think we're a more expensive business model.
Click to expand...

Much more than 'cost effectiveness' - brokers are a risk-management tool for lenders too. If one of their own bank staff stuffs up, the bank has no recourse to anyone in the case of fraud. But if a broker is involved, then they have a right to claim against the broker's indemnity insurance...
 
Rolf Latham said:
Of course the branchies dont consume resources, energy, work space, marketing .........they dont even produce much CO2.
Click to expand...
Trying to make us feel guilty about taking business away from a bank branch now?? :eek:

Rolf Latham said:
what is the LVR, and what is the primary purpose of the move ?

ta
rolf
Click to expand...
Combined LVR? just under 80%

The interest in switching is to get a better combined rate i guess.. as the first few posts were alluding to. Say if it's 7.05% now and I could negotiate down to 6.80% that would be $2k/year.

Loan C is with a credit union - I've been very happy with their service so far and don't mind paying a slight premium to stay with.. but if the net result is $2k off for my small portfolio - it must be worth thinking about?
 
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