Westpac Premier Advantage Home Loan

Negotiating a discount with Westpac

Hello, been lurking a while but decided to post.

Bolero, when did you take out your loan with Westpac? In July last year, we borrowed $0.5M with Westpac too (also on the Premier Advantage package) but only got the 0.7% discount rate. I guess our broker didn't push too hard for us to get more % off. We really regret this now, as every .1% really counts for us.

Does anyone know how we can negotiate more of a % discount with Westpac now that we are already their customers? Any help appreciated.
 
auror said:
Hello, been lurking a while but decided to post.

Bolero, when did you take out your loan with Westpac? In July last year, we borrowed $0.5M with Westpac too (also on the Premier Advantage package) but only got the 0.7% discount rate. I guess our broker didn't push too hard for us to get more % off. We really regret this now, as every .1% really counts for us.

Does anyone know how we can negotiate more of a % discount with Westpac now that we are already their customers? Any help appreciated.
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I've got 0.9% discount on $1.45MIL in Sept 2007, but I also got 2 seperate loan in 2008 with 0.7% only
 
The Prem package was my first loan and out o all my lenders Ive been happiest with Westpac, theyre always helpful to me.

I chose it because it had the highest discount and I could setup an offset account so for $400 bucks a year it serves me well, depends on the features you need/want though if you dont need any then its probarbly not worth having.
 
Hi AU

Simply call the lender and ask for more ...............given the current funding costs they may refuse, but we have always found most lenders will do more to KEEP you than to aquire the loan in the first place.

ta
rolf
 
thanks for the quick replys. I would happily give them a call although do I have to ask my broker to do it? (since they set the loan up for me).

I'm just kicking myself for not having done this before the credit crunch hit. I heard that Westpac's Premier Advantage discount is going to be dropped from 0.7% to 0.4%? if so, that is a sign that they are going to be sparing with the discounts!
 
Hi Au

In general, the lender wont take instruction from your broker once the loan is settled.

In any case, the borrower calling the bank with a reasonable request of " i can get x" over at this lender will have more clout than the broker trying it on, because the lender knows that the broker would be unlikely to move you you in the first 1 to 2 years because of comm claw backs

The 40pts discount "rumour" probably stems from the 85 % no lmi product

ta
rolf
 
Aah. Thanks for explaining it, Rolf. In fact I do have the 85% no LMI product.

A friend at work has 0.85% off at another bank. I guess I'll have to work out how big my deferred establishment fee wil be, compare it to how much I save by getting more discount from another bank (potentially 0.15%?), and threaten to Westpac to jump ship.
 
auror said:
Aah. Thanks for explaining it, Rolf. In fact I do have the 85% no LMI product.

A friend at work has 0.85% off at another bank. I guess I'll have to work out how big my deferred establishment fee wil be, compare it to how much I save by getting more discount from another bank (potentially 0.15%?), and threaten to Westpac to jump ship.
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Auror

Before you do check - at least consider letting your broker retain your biz if they did a good job by you initially and run the loan thru them.

To explain - when I first started I did an 85 no LMI thru westpac for some clients. They didnt even know it existed. Saved them heaps in LMI and they had the .7 discount. About 8 months later the ungrateful wretches ;) went to cba for .8. Beyond stupid really as it cost them about 3k to refinance so I dont know where the savings was short term.

Consumers dont take this into consideration a lot but if its me and I have a choice of keeping the client but suffering a bit of the clawback then I'm happy to rather than run a full loss on the business in its entirety
 
lukentel said:
Auror

Before you do check - at least consider letting your broker retain your biz if they did a good job by you initially and run the loan thru them.

To explain - when I first started I did an 85 no LMI thru westpac for some clients. They didnt even know it existed. Saved them heaps in LMI and they had the .7 discount. About 8 months later the ungrateful wretches ;) went to cba for .8. Beyond stupid really as it cost them about 3k to refinance so I dont know where the savings was short term.

Consumers dont take this into consideration a lot but if its me and I have a choice of keeping the client but suffering a bit of the clawback then I'm happy to rather than run a full loss on the business in its entirety
Click to expand...

OMG Richard.......Don't tell me you expect to make a living out of assisting clients. Don't we just do it for the love having to continually be frustrated by lenders? ;)
 
Hi Aurora,

I don't think it would have been possible for your broker to bargain down your discount on an 85% no LMI at $500k as there is really only 1 other funder in competition. It is getting very hard to bargain at all unless the borrowing is up over $750k and this has been the case since early last year, although as Rolf said, you are much more likely to be successful negotiating a reduction as an existing customer.

Kind Regards,

Cameron Perry
Perry Financial Strategies
 
Last edited by a moderator:
Hi, thanks for all your advice. My workmate was bragging about his .85% discount, which got me wondering about why we went for the 85% LMI product and less discount off the interest rate - especially as we had a 30% deposit for our PPOR. We have a whole lot of cash sitting in our offset account which I guess could come in handy for a rainy day (or another IP, I guess).

Thanks to all the brokers for chipping in with your 2 cents :) I will probably use the same one again now that I understand how he has worked for us better.
 
I currently have $1.2 million in loans with STG/Bank SA on the old professional package (0.7% off, but there are still account keeping fees)..

I'm going in on Friday for another loan which will put me up over $1.6 million in loans.

Do you guys think I can do better than the 0.7% discount? I was thinking of aiming for 0.9% but in reality I would still walk away happy with 0.8%.
 
Well, BankSA/STG said no, even on my own home loan of $350k they will not increase the discount beyond the 0.7% everyone gets on a loan of >$250k.

This is despite $1.6 million in borrowings. So I have let them know I'll be moving all my business (personal accounts, business accounts, home loan -- and ip loans when they come off their fixed rates).

Just need to find a good broker or lending manager in Darwin to find me a bank that is willing to deal.
 
aw1 said:
Well, BankSA/STG said no, even on my own home loan of $350k they will not increase the discount beyond the 0.7% everyone gets on a loan of >$250k.

This is despite $1.6 million in borrowings. So I have let them know I'll be moving all my business (personal accounts, business accounts, home loan -- and ip loans when they come off their fixed rates).

Just need to find a good broker or lending manager in Darwin to find me a bank that is willing to deal.
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There is an old saying, how do you get tough with your Bank. I too am working on adding some sub accounts that will increase our line with St George and was going to ask for a deeper discount, because other banks are offering a bit better and when the numbers get big any points help.

We have had St George's portfolio product for a while and if I recall correctly at this point I could switch and it wouldn't cost us anything. My Key in negotiating. They have been quite responsive in the past to my "issues". So as we go through the process, I will let you know if I have any success.
 
MJD said:
I've got 0.9% discount on $1.45MIL in Sept 2007, but I also got 2 seperate loan in 2008 with 0.7% only
Click to expand...

Same here... 0.9% discount on similar borrowings. I also arranged pre-approval for another purchase recently and was advised 0.7% is the best they would do for new loans in the current climate. Anyway, I got approved for additional new borrowings up to $1.7M at 90% LVR, so credit is still available out there. Now I'm just waiting for the right deal to come along... I'm looking at high-end Northern Beaches properties, and there are heaps of keen vendors around the $1M+ mark. Lower and mid-range properties are moving pretty quickly though with no significant discounts, but the top end is where the bargains can be found... 20% off is quite achievable. No rush, but will definitely buy sometime this year.

Cheers,

Shadow.
 
Rixter said:
I receive 0.7% discount off all my variable loans right across our portfolio but I believe there are others here who have negotiated a 0.8% discount - something I need to pursue for myself I think now the precedent has been set.
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I phoned Westpac's loan retention units earlier this week asking for an increase in my premier advantage package discount from our existing 70 basis points up to 85 basis points.

Well, I just received a phone call back this morning stating that they will increase my discount to 85 basis points as I requested across my variable rate loans.

I cant complain at that....tho maybe I should have asked for 90 bps. :)
 
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