What are you paying for your Variable rate?

Hi All,

Inspired by Peter147's post of "What are you paying for your LOC?" I went off to see my Bank (Anz) to see if I could negotiate a better deal regarding my variable rate loans. Im happy to say they came back and gave me 0.7% off the SVR on all my variable loans! :D Im now sitting on 6.62% on all loans (I was on 6.82% and 6.72% respectively)

I'm curious as to what others have negotiated for their Variable rate loans.

"So may I ask:

1. What do you pay as an interest rate?
2. Whom are you with (CBA, NAB, Westpac, etc..)
3. Does that come tied with a professional package?
4. If so, how much for the package P.A.?" -----courtesy of Peter147
5. Total borrowings to get automated discount or negotiated discount



Mine is:

6.62%
ANZ
Breakfree Professional Package
$300/year

Cheers,

Damon
 
Last edited:
7.32%
WBC
Professional package gets 0.7% top tier discount off the SVR - so SVR discounted rate is 6.62%.
Professional Package is called Premier Advantage and is $396 p.a
 
Same as rixter
Westpac discount of .7%, brings it down to 6.62% with the yearly pro package.

I do still have one loan with HomePath at 6.46% variable, although I don't recommend them as they are too difficult to deal with :(

Cheers
Mike F
 
1. What do you pay as an interest rate? - 6.57% (0.75% discount on standard variable)
2. Whom are you with - NAB
3. Does that come tied with a professional package? - Yes
4. If so, how much for the package P.A.? - $375

The above deal is on 600k of borrowings. Once I crack 800k the discount should increase to 0.8%. When I hit $1.5m it should be more than 0.9%. The target is 1.15% although I'm sure I'll have to borrow a truckload to get there (and I plan to).
 
I forgot to mention, you should add the total borrowings to the list of questions. The more you borrow the better deal you will get.
 
Have added total borrowings to the list, cheers domcc1.

In my case (Breakfree Pro package from ANZ) the maximum "automated discount" is 0.6% discount on borrowings over $500K (from memory). Knowing about the Westpac Premier package and letting ANZ know I was looking at it, prompted them to offer 0.7%.

I guess the above story is what i'd like everyone to be aware of (mainly for newbies like myself) and for any other people to post similar negotiating successes along with their current discounts.
 
Warning

Carrots arent oranges even though they are the same colour.

Pete's post was product specific, IE LOC.

This one is could result in a a dogs breakfast basic loan with 2 % exit penalty being compared to a 100 % IO offset pro pack loan with no top up fees etc.

While The ANZ Standard Investment Loan and Westpac Rocket Repay are similar, the NAB Base Home loan isnt, neither is the Homepath nor the usual plethora of securitised Resi etc loans

ta

rolf
 
Fair enough, good point Rolf.

I guess the point of the thread is not so much to determine whats better in comparison, but to show what is out there and what other people are using. If it then looks better on the surface then why not check it out further.
 
I am not a newbie but didn’t look around at other banks deals lately. Thanks to this thread, I was made aware about 0.7% WBC discount. Similarly to the above example, I just let ANZ know about the situation and asked for the better deal. The discount was increased from 0.6% to 0.7% in three days! No questions asked.

M.
 
Hey All

It great to be able to get quick feedback like my lOC thread.

Rolf is right to say to check the fine print though. LOANS is his business and he one of the best here from many reports and personal experience.

I had a terrible experience with a non bank lender via the MIAA and when i tried to end it got nasty. Not being a bank I had no Ombudsman to use as a stick and they tried to rip me off $5k.

Presently CBA with 5 fixed @ 6.19% and variable LOC FYI.

Peter 147
 
Rolf,

Where do you get sayings like this?

"Carrots arent oranges even though they are the same colour."

I think their great!

Ian
 
I agree Ian.
Perhaps someone could start a thread for rolfs quotes/sayings as they crack me up.
Its kinda forrest gump-ish how they come across but the meaning is so much deeper in so many ways..... excuse me while I go have a flashback now.
 
Hiya Ian

Thanks for the kind words

Not much original comes out of my mouth or mind.

Its mainly an eclectic mix of client exposure, many many self development seminars, and a bit of sales "street smarts", combined with many monthly book and cd series.

Most of my stuff comes from others, but the carrot vs orange is mine (though likely nicked from somewhere ).

Like many sayings, it was borne of the frustration of trying to find a metaphor for apples aint apples.

Mortgages (on the surface) have been reduced to commodity items, hence one borrower thinks their lowest rate doggy product is the best thing around, yet whine when they cant do the usual things with it.

Possibly the closest comparison I can find is that someone expects MB performance, resale and reliability from a Korean Car that is priced at < 50 % of the MB. Guess what, it dont happen. Almost always you dont get what you dont pay for................


ta
rolf
 
Westpac

I fixed for 3/5 years with Westpac at 5.99%. That rate was irrespective of the size of the loan (it was the going rate in august 2003).

when i do go off the fixed rate then it reverts to the standard variable, less .7% professional package.

There is an annual "fee" of $300.

Tony
 
tonyc00 said:
I fixed for 3/5 years with Westpac at 5.99%. That rate was irrespective of the size of the loan (it was the going rate in august 2003).

when i do go off the fixed rate then it reverts to the standard variable, less .7% professional package.

There is an annual "fee" of $300.

Tony

Tony, the annual fee has now increased to $395 :eek:
 
My broker (who happens to be my brother) negotiated a 0.8% discount for me for a $400K loan. Pro pack through one of the big 4.

Regards
Alistair
 
Knocked back

Hi
I rang the ANZ today to let them know that i would like my interest on my breakfree pro package Reduced from 0.06% to 0.07% and i was told they would not reduce it any more.
Reading this forum some of you had no probs
So why not me?
 
Tell them your taking your business elsewhere and they will probably change their mind. If not, call their bluff and refinance.
 
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