Nice surprise from ANZ

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From: David Brady


I have been wondering what to do with the finance from our IP coming out of a 4.95% honeymoon period. To fix/how long/change bank etc etc.

Then I get a very pleasant letter from ANZ offering me a 0.5% discount to the standard variable rate 6.82%, I didn't even ask. That makes 6.32% on a no fee, 100% offset etc loan.

Is it still worth shopping around?

I believe variable is the way to go as local rates will be in my opinion +/- 0.5% current levels over the next 2 years. Any differing opinions?

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi David

You must be a favourite customer. Good product good rate, unlikley you would do much better.

On the issue of rates, middle term fixed rates have moved by .5 to 1.0 % in the last 12 weeks. Look at fixing more as a risk management tool rather than a "is this financially advantageous or not". The diff between standard variables and 3 and 5 years rates can be viewed as an insurance premium. On a proff rate of 6.32 the decsion becomes even harder.

Ta
Rolf

 

[WebBoard]

Reply: 1.1
From: Bernie Phillips


Hi David

They call it a professional discount. We have it as part of our loan package with them. If the loan is part of Premier Select then it will incur a $300/yr flat fee. Unless you negotiated it down to $0 somehow?

Cheers

BP

 

[Robert]

Reply: 1.2
From: Robert Forward


Hi Rolf,

I've just noticed that Aussie Home Loans have just cut all there fixed term rates after the US Fed cut their rates.

Aussie's new fixed home loan rates are 6.35 per cent for one year, down from 6.5 per cent previously. The two-year rate is at 6.7 per cent from 6.9 per cent while the three year rate was cut to 6.95 per cent from 7.3 per cent. The four year rate was lowered to 7.1 per cent from 7.4 per cent while the five year rate was taken to 7.15 per cent from 7.45 per cent.

I wonder if the banks are going to follow suit???

Cheers
Robert

PS: I don't work for Aussie, but "They'll Save Ya" hehehe....

 

[Rolf Latham]

Reply: 1.2.1
From: Rolf Latham


Hi Robert

I think you will find this has more to do with competition and trying to get back into the market, since most non bank fixed rates have been uncompetitive for some time.

Well see )

Ta

Rolf

 

[WebBoard]

Reply: 1.2.1.1
From: David Brady


To Bernie,

No fee at all asked for. Just the normal loan, no set up (as it's coming off fixed), no monthly, full 100% offset, and OK service.

 

[WebBoard]

Reply: 2
From: Victor Mann


Gee retention unit must have had its butt kicked!!!!!

switching after a honeymoon rate? check the fine print u might find it would have cost u to move.

stick with the package its one of the better ones

Good hunting

Victor Mann

 

[Rolf Latham]

Reply: 2.1
From: Rolf Latham


Hi Victor

Lotsa lenders all over the shop at the moment.

The following are deals that clients have got through recently even though they are either against product or credit policy.

1. LOC, no sir there is no LMI on this lenders product available and it only goes to 80 %, yet a 90 % was negotiated and LMI wasn NOT waived.

2. Wrap deals, vendor finance, etc. No Sir we do no do any type of vendor related finance, yet several clients of mine recently had approvals even though the PR department of this lender had issued a release stating that they would NOT do this type of deal under any circumstances.

Two point to this post.

Product policy is becoming more and more negotiable and if your lender says "wraps" are "ok" give them the purpose of the loans in writing so there is no come back later on.

Ta

Rolf