Refinancing - who won't jack up their rates for existing customers

[Gatoblanco]

I am looking to refinance as I have finally come out of the period where 'break costs' apply. I set up my existing loan prior to the legislative change.
Although 'break costs' are now illegal, there are still application fees and discharge fees (some of which I have heard can be big but are just worded differently to still be legal).
Therefore there are still costs associated with switching loans again in the future.
What I am trying to do is choose a variable loan who is less likely to increase their rates for existing customers (including by not passing on cuts).
I was looking into loans.com.au but some contributors to forums seemed to state that they were paying more as existing customers (what I am concerned about). From google I get the impression that some of the low rate loans are more inclined to increase (for existing only) once you are with them.
I would trust bank lenders more not to do this but of course their rates arent as attractive.
Any advice?
Thanks

 

[Rolf Latham]

understand your concern, the cost to move per se int a big cost in the overall scheme of things, compared to previous exit costs.

Perhaps focus more on what sort of loan product you need and why, then look at lenders that provide the sort of product.

one of the challenges will always exist regardless of what legislation is out there.

You arent going to get BMW product at Kia price long term


ta
rolf

 

[Jamie M]

Hiya

It's impossible to predict future bank behavior. You can look at what they've done historically - it could provide some insight.

With an external refi you're looking at outgoing lender discharge fees, state govt. fees and incoming lender application fees where applicable. Usually it's not more than $1k all up but ask your current lender how much it will cost to leave.

Also speak with their retention team before you jump ship. Mention the other lenders rate and your desire to refinance - they might offer you something to stay.

Finally - please also remember that rate is not everything.

Cheers

Jamie