Time to negotiate with your bank?

[Banked]

During these times of rising interest rates and talk about the property market flattening somewhat, I'm interested in hearing opinions on whether or not its a good time to negotiate interest rates and property values with your bank (or threaten to take your business elsewhere).

Has anyone had any success with this lately?

Thanks!
Banked

 

[Rolf Latham]

Hiya

On valuations yes, ALWAYS

On rates..............maybe .................

I have found that the lenders have become a lot more savvyin recent weeks and wont take on business that wont make them money.

A really really good example is Adelaide Bank.

variable rate is 8.84 regardless if its 100 k or a mill.

They need to maintain the same margins and wont move on rates .........now if BAL is the only lender that will do that deal, then there arent many options.

The Biggest thing you face is that you have NO surety with variable rates of getting anything long term. You might get 15 pts over lender B from Lender A, then Lender B decides to move its base rate by 20 pts due to cost of funds, now you are 5 pts behind.

ta
rolf

 

[Mrman]

There is no harm in trying. I went to see the bank yesterday just to see what they thought of my current loan situation. I have 2 loans with Colonial which is part of CBA and I'm getting a 0.5% discount on loan 1 and 0.6% on loan 2. He suggested I try and get them to give me the 0.6% discount on loan 1.

 

[GreenTreeFrog]

I did the rate negotiation with ANZ recently and went from .7 discount to .85.

 

[Monaro]

I'm going to have to negotiate with my credit union at the end of the year (Aust Central Credit Union). Currently I have 2 loans (both fixed at the moment)

- Loan 1 ($230k fixed at 6.8%) IP
- Loan 2 ($315k fixed at 6.3%) PROP

The fixed periods end at the end of this year and start of next year, and ACCU's current rates are around the 8.9%. This will see an increase of nearly 2% in one hit for me.

Have you guys got any suggestions one how I deal with this? Having only around $500k, am I in a position where I'll be able to negotiate any discounts?

 

[Banked]

Have you guys got any suggestions one how I deal with this? Having only around $500k, am I in a position where I'll be able to negotiate any discounts?

I have "extended" the truth in the past saying that my 12 month plan included the purchase of additional properties and that I would be taking out additional loans with which ever bank offers me the best rates. May be worth a try....