Somersoft Group Advice Pty Ltd is sending its invoice for $20k shortly
Taking a $16k hit - breaking fixed rate loan. Negotiation/anything I can gain?
- Thread starter Richard Feynman
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- break fee fixed rate
Somersoft Group Advice Pty Ltd is sending its invoice for $20k shortly
*flees country*
Good stuff. Im glad it went down to the $16.x mark which you wanted in order to break.
You may want to split your now variable loan, so you have the best of both worlds. IE majority of it fixed at a decent rate now, and a smaller amoun variable giving you the option to perform a top up if you need to access the equity to help fund the purchase of the next IP in early 2014!
If anyone's curious, I paid close to $40,000* for this valuable lesson.
Who needs private school?
* incl break fee and interest paid above the standard variable rate over the course of 3 years, 2 months (life of loan)
Who needs private school?
* incl break fee and interest paid above the standard variable rate over the course of 3 years, 2 months (life of loan)
Just ring CBA up and say you'd like to discuss the rate you are on. I did that once, and they said "are you threatening to move banks?" To be honest, that was not at all my intention - I was just confused as to why a mortgage product with the same name as the mortgage product I had was being advertised at a lesser rate than I was paying. Of course it would have been because I signed up at a different time. But anyway, I said "oh, um, maybe" and they said "sure absolutely we can knock x% off your rate. There you go, it's done."
I presume they just needed a "reason" to put against what they had done. There must be a dropdown field on their screen. "Customer threatening to leave".... "Customer was inconvenienced by a bank error" ..... etc.
Ultimately I doubt that the call-centre operator cares whether you are getting a good deal or not... they just want to get through the day without enduring too many conversations with angry customers. If you ring up and are polite you might be surprised at the outcome.
I presume they just needed a "reason" to put against what they had done. There must be a dropdown field on their screen. "Customer threatening to leave".... "Customer was inconvenienced by a bank error" ..... etc.
Ultimately I doubt that the call-centre operator cares whether you are getting a good deal or not... they just want to get through the day without enduring too many conversations with angry customers. If you ring up and are polite you might be surprised at the outcome.
And this wasn't even deductible! Wow, how painful, but just think how much you are going to save from now on. This should ease the pain
you're right, the call centre operator doesnt care if u get a good rate or not. Having said that they would have seen that you are actually nto getting the equilvalent concession you are entitled too accoridng to your total home lending balance with the bank, thus they said they can reduce it to this amount. No call centre operator has that type of delegation unless the retention team calls YOU..
Got a follow-up call today after some post-break negotiations. Minor success.
0.33% Interest Rate reduction applied to all borrowings (now 4.97% -- not a brilliant rate, but far better than nothing) which'll save me $1300 a year.
It isn't huge, but the impact on servicability is going to help plenty with the next purchase.
Terry, bingo. A 'minor' cost now for major longterm savings, coupled with a significant acceleration towards the acquisition of subsequent assets.
0.33% Interest Rate reduction applied to all borrowings (now 4.97% -- not a brilliant rate, but far better than nothing) which'll save me $1300 a year.
It isn't huge, but the impact on servicability is going to help plenty with the next purchase.
Terry, bingo. A 'minor' cost now for major longterm savings, coupled with a significant acceleration towards the acquisition of subsequent assets.
