Refinancing -experiences with a Big4 Bank

[sash]

Hi All,

I thought I would post my experiences on refinancing.

As per some of my previous posts, it looks like I am closer to refinancing two of my loans with ChoiceLend at 6.69% for two years. Note the cavest here is that you need to have a LVR below 65% to get this loan....anything up to 80% attracts another 0.1%.

So far, my experience as follows:

1. Loan 1 with OnDirect (a discontinued subsidary of ANZ)

Initially, the call centre guy said that I had to pay a $1000 exit fee on top of an administration and settlement fee (about $320). I decided to complain via the customer relations Department.....and surprise surprise got a call at 8:30am today informing me that $1000 is waived...but $320 stands.

So based on that I this and a $550 refund of the commission....it will cost be about $250 to exit this loan!! Based on my calculation the payback on this loan is about 4-5 months. I expect rates will go up further so this may come down further.

2. Loan 2 with CBA

This has proved to be an absolute pain....have logged a couple of complaints and will keep going till i get resolution. So fat they have informed me it will cost me $1445 after the comm refund about $575..it will cost be about $870 to exit the loan...about a 1 year payback at this point. But I am DETERMINED TO LEAVE the CBA.

Well....it is worth it....in my eyes ABSOLUTELY....I don't want to be one of the many who whinge but do not do anything. I am also planning to pull everything off the CBA and move all my business over the next 6 months. It probably won't worry them ....but imagine if lost more people do this!

I am hoping I have moved these two loans by the new year!!

Would love to hear other peoples experiences.

 

[virgo]

Cba

HIya Sash

FYI i am determined to leave CBA; they have been really a pain in the last 6 months; trying to do a simple refinance and they have been bouncing me to and fro like a yo-yo; demanding so many documents it is not funny!

I remember once when i tried to talk to a real person at a branch; the girl was trying to talk to me and trying to chew gum at the same time!
THat's it for me!

The last time i could not even move up the service queue to inquire about exit costs; as that many people were trying to get out!

 

[on the move]

cba is the most pain in the butt, few days from settlement they still ask for monthly loan statements from 6 months back. I swear I never deal with those morons again !!!!

 

[sash]

I actually found the ANZ reasonable. They seem to know the value of not burning bridges.

But the funny thing with the CBA is that the retention guy who called me could not handle...how shall I say robust discussions with me...this was after warning them 5 days (yes it took Which bank 5 days) of getting someone who is not a trained monkey quote unquote!

Anyway the guy who called me hung up due to the me having a robust discussion...which majorly pissed me off and another complaint eventuated with the lady who runs the retention area calling back and apologising. She still would not do anything to waive fees (yes I expect them to waive the exit fee).

Oh well....thinking of the a new strategy.....I am thinking of calling the Area Manager and give them a chewing.

Since I have sometime on my hands I am going to call up again and ask for another answer......I am sure at some point they will get fed-up and waive the fees for me to go away...well that is what I am hoping.

Seriously, the quality of CBA staff is shocking.....

 

[Marty McDonald]

I think that if they are any good they get promoted away from customer facing positions or get moved into the commercial space. Many of them get paid peanuts and get abused by customers. Really it would be a crap job.

 

[Ridin-High]

Sash, have you paid the rate lock fee on your application with Choicelend?
Also from their website it says fixed rate for under 65% LVR = 6.99% fixed 2yrs.

What if you wanna draw equity to purchase something doesn't give you much flexibility capped @ 65% LVR. Minor assist in cash flow traded for major loss in flexibility to expand

give me your thoughts

Regards,

RH

 

[Rolf Latham]

welcome to my world

ta
rolf

 

[Qlds007]

Fast Lend / Advantedge rate went up Monday before last but they are still holding over deals that were submitted prior to this date.

I submitted 4 deals on the Sunday after the rate announcement and 3 of the 4 clients have already been approved at the old fixed rates.

 

[sash]

Not yet....but have signed the paperwork to deduct it from my Credit Card.

They will deduct it once they the final paperwork to me.

I got the paperwork in time for the old rate which is 6.69% (less than 65% LVR) or 6.79% (more than 65% LVR).

From what I am told I can draw more money via a separate LOC via a separate facility if required up to 80% LVR. I doubt I will need this as I have offsets with large amounts of cash in it in case I need instant cash.

Anyone have any ideas how to put the thumb screws on CBA to come to my way of thinking?? Perhaps a few bikies to sort out uncle Ralphs' knees.

Sash, have you paid the rate lock fee on your application with Choicelend?
Also from their website it says fixed rate for under 65% LVR = 6.99% fixed 2yrs.

What if you wanna draw equity to purchase something doesn't give you much flexibility capped @ 65% LVR. Minor assist in cash flow traded for major loss in flexibility to expand

give me your thoughts

Regards,

RH

 

[Qlds007]

Fast Lend / Advantedge rate went up Monday before last but they are still holding over deals that were submitted prior to this date.

I submitted 4 deals on the Sunday after the rate announcement and 3 of the 4 clients have already been approved at the old fixed rates.

 

[Ridin-High]

Not yet....but have signed the paperwork to deduct it from my Credit Card.

They will deduct it once they the final paperwork to me.

I got the paperwork in time for the old rate which is 6.69% (less than 65% LVR) or 6.79% (more than 65% LVR).

From what I am told I can draw more money via a separate LOC via a separate facility if required up to 80% LVR. I doubt I will need this as I have offsets with large amounts of cash in it in case I need instant cash.

Anyone have any ideas how to put the thumb screws on CBA to come to my way of thinking?? Perhaps a few bikies to sort out uncle Ralphs' knees.

They will goto Ralph and then Ralph will say "What ever he is paying you ill double it" then u will get ur knee's capped

I wasn't talking about a buffer POV, im talking from a if you want to purchase POV. Just make sure you confirm you can draw upto 80% LVR.

Usually the banking ombudsmen whips em into shape?

I personally would cop a slightly bigger rate to have that option to get 90% LVR, but im not as advanced as you and still aggressivly expanding

 

[sash]

Nah....they won't take Ralph's offer it will ruin their integrity of getting the job done!

Not worried about be able to draw up to 80 LVR or 90% LVR. I have over 400k in funds in various offsets....and growing. I use these funds sparingly to put deposits, usually only fund 3-5% of purchase price plus stamp duty.

I plan to buy aggressivelyt over the next 3-9 months as the property market slows and hopefully bargains appear!

They will goto Ralph and then Ralph will say "What ever he is paying you ill double it" then u will get ur knee's capped

I wasn't talking about a buffer POV, im talking from a if you want to purchase POV. Just make sure you confirm you can draw upto 80% LVR.

Usually the banking ombudsmen whips em into shape?

I personally would cop a slightly bigger rate to have that option to get 90% LVR, but im not as advanced as you and still aggressivly expanding

 

[Rolf Latham]

I plan to buy aggressivelyt over the next 3-9 months as the property market slows and hopefully bargains appear!

preparation ..........come meet opportunity

or as some that arent prepared would say........Vulture

But, in the real world even vultures have a major role to play.

ta
rolf

 

[RumpledElf]

Don't get me started on CBA and the magic disappearing $8k that is now screwing with our current plans and they will NOT revalue the house, let alone entertain the notion of returning that $8k (they've already admitted they are perfectly capable of doing both, they just *won't*).

We've got a new broker and are refinancing one loan out to ANZ. I'm guessing I just have to wear that $700 exit fee. We still haven't decided to rent out or sell the other house, and after the forced paydown the loan is waaaay under half what we'd get for it if we sold it (contrary to the CBAs miserably low valuation) so I'm not going to cough up all the fees to refinance it if they're just going to come straight off the bottom line.

Much of this could have been avoided if they'd valued our third property when they got the title, instead of just filing it away with an official on-record value of $0.

 

[sash]

Squack....squack.....

Yes, Vultures are neccessary.....after all who would clean up the rotting bodies!!

preparation ..........come meet opportunity

or as some that arent prepared would say........Vulture

But, in the real world even vultures have a major role to play.

ta
rolf

 

[feihong]

Fast Lend / Advantedge rate went up Monday before last but they are still holding over deals that were submitted prior to this date.

I submitted 4 deals on the Sunday after the rate announcement and 3 of the 4 clients have already been approved at the old fixed rates.

My mortgage manager (who uses Challenger/Advantedge) have submitted our fixed rate applications on Monday afternoon (15th Nov), which was still within the deadline of the rate increase apparently (they were told the rate increase will be effective as of Tuesday 16th Nov). The good news is I now have 2/4 loans converted from variable to fixed @ the old fixed rates, am still waiting for the other 2 to come through, fingers crossed!

 

[sash]

Looks like I have managed to convince the CBA to forgive the $700 defered establishment fee! Wooohoooo!!!!

That means the change over for my CBA loan will be less than $250 also!

This means I will leave 2 loans with them with a promise of some more lending if they are competitive.