New loan advice

J

Jom

Hi all

My wife and I are currently purchasing a new PPOR and have just had our finance approved through westpac. My wife's finance on her previous property which we have just sold to fund this new purchase was with also with westpac settlement day is in fact the same).

They are offering us the rocket home loan which comes with a 4.99% variable rate, 1% off their standard variable. However we're required to pay a yearly fee of about $350 to get this reduced rate.

And it also seems that they want to charge us the $700 loan establishment fee.

We haven't had to obtain LMI as our LVR is approx 78%. Loan amount is $730k.

I have two questions:
1) would it be reasonable for me to request that they waive the new $700 loan establishment fee?
2) do you think there is scope to negotiate the 4.99% variable rate? (reading other posts it looks like closer to 4.85 might be achieveable)

Any advice would be appreciated.

Jom
 
Hey Jom,

For that loan size, you should be able to request another 0.10% of at least. When you ask Westpac for a discount, perhaps quote that Suncorp just had a special going (recently finished) for 4.69%.

On the breakfree package their isnt an establishment fee for this loan (or any future loan you take with Westpac).

Cheers,
Redom
 
Jom said:
Hi all

My wife and I are currently purchasing a new PPOR and have just had our finance approved through westpac. My wife's finance on her previous property which we have just sold to fund this new purchase was with also with westpac settlement day is in fact the same).

They are offering us the rocket home loan which comes with a 4.99% variable rate, 1% off their standard variable. However we're required to pay a yearly fee of about $350 to get this reduced rate.

And it also seems that they want to charge us the $700 loan establishment fee.

We haven't had to obtain LMI as our LVR is approx 78%. Loan amount is $730k.

I have two questions:
1) would it be reasonable for me to request that they waive the new $700 loan establishment fee?
2) do you think there is scope to negotiate the 4.99% variable rate? (reading other posts it looks like closer to 4.85 might be achieveable)

Any advice would be appreciated.

Jom
Click to expand...

Ps if you'd like to borrow more (but you didnt because of LMI) and into LMI territory, hit up ING. Current special is $1 LMI for 90% loans. Park additional borrowed funds (the extra 12%) into the offset and use when required. :)

Cheers,
Redom
 
Redom said:
Ps if you'd like to borrow more (but you didnt because of LMI) and into LMI territory, hit up ING. Current special is $1 LMI for 90% loans. Park additional borrowed funds (the extra 12%) into the offset and use when required. :)

Cheers,
Redom
Click to expand...

You might want to check with ING on that. $1 LMI was the shortest promotion in history, it finished last Monday.

Jom the Westpac product is best suited is "Premier Advantage Package". They have a single annual fee of $395 (no account keeping fees or application fees). With a loan of $730k you should be able to get a variable discount of 1.15% which is an effective rate of 4.83%. It may be possible to get a discount of 1.20% (perhaps). Their 5 year fixed rate is 4.99%.

Frankly if rate is your primary concern there's much better offers out there at the moment. Westpac and the CBA are two of the more expensive lenders.
 
Peter_Tersteeg said:
You might want to check with ING on that. $1 LMI was the shortest promotion in history, it finished last Monday.

Jom the Westpac product is best suited is "Premier Advantage Package". They have a single annual fee of $395 (no account keeping fees or application fees). With a loan of $730k you should be able to get a variable discount of 1.15% which is an effective rate of 4.83%. It may be possible to get a discount of 1.20% (perhaps). Their 5 year fixed rate is 4.99%.

Frankly if rate is your primary concern there's much better offers out there at the moment. Westpac and the CBA are two of the more expensive lenders.
Click to expand...

Oh no, that's a lot shorter time period than i expected. Thanks for the update Peter.

Yep, if rates your only concern, Ubank/loans.com.au are bargain online lenders.
 
Hiya OP

You can get a better discount on that rate - especially at that LVR and loan amount. Push your banker/broker for more.

I don't understand the $700 estab fee - that shouldn't be there.

Cheers

Jamie
 
ok, so an update. The loan approval has come through formally and we've signed the docs committing us.

They are not going to charge the $700 loan est fee. And I asked about whether they were prepared to talk about a reduced variable rate. I explained that there are better rates available and that I was sure they wouldn't want to loose our business. The home loan manager I have beenn dealing with she said that the rate can be reduced but we are now best to wait until we've settled (13 Jan). She said that once it's settled to give her a call with a proposed rate. She'll then run it by her manager and give us the yay or nay.

Do people think that 4.8% would be a fair rate to propose (reduced from the 4.99% they are currently offering?

I'm also thinking of fixing half the loan for 5 years. Their current 5 year rate is 4.99%. Any thoughts?
 
13th gives you no real other options per se, so you will need to trust what you have been told.

because its an 80 % lend and its variable you arent "locked in" and that will provide some comfoty

Rocket Repay under Pro pack doesnt have an app nor monthly fee.

WBC is expensive overall, but does offer one of the best products and long term IO roll over propositions of any lender, though isnt the best product for debt recycling PPOR debt

Right now, until you get the best variable rate,I would not split the loan to a part fixed.

Fixing is a separate discussion.....................
ta
rolf
 
Jom said:
Do people think that 4.8% would be a fair rate to propose (reduced from the 4.99% they are currently offering?
Click to expand...


If you run it by Westpac's Mortgagr Retention unit you may have a shot.

1.18 discount on less than a mill isnt common with WBC, esp if not on a pro pack

ta
rolf
 
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