What are you paying for your Variable rate?

Candide said:
Sorry but I do not think this is anywhere near correct.
Eyeyeyey...

OK, firstly, Doncossack is already in the professionals package:

Doncossack said:
Got two P+I loans thru CBA's wealth package $300 year fees
So, no "incremental" cost incurred here to move over to a wealth package. He's on 6.82% in the wealth package!

Secondly, deductibility is entirely dependent on the purpose of the loan. Mine is for my PPOR so that goes straight to my bottom line. If its an IP then sure it just reduces your declarable loss by reducing your costs, but surely you're not suggesting you're better off paying a higher interest rate so that you can get a better tax deduction? I'll take the lower cost and reduced deduction anyday...

Thirdly, as mentioned in point1, he's already consolidated in a wealth package, as am I. The costs of these wealth packages are tiny compared to the benefits they can give you if you're going to do some serious investing. The free property valuations alone would cover your annual costs if you're drawing equity regularly for more IP purchases. Not too mention all the other bundled benefits.

Lastly, what do you mean by this:

Candide said:
miniscule interest rate discount (which I don't beleive exists)
They're there for sure. I'd call a 6.52% standard variable rate on a P&I loan a pretty good discount compared to the advertised rate. Some people are "fixing" loans at a rate higher than this today.

Cheers,
Michael.
 
Hi Candide

I know you like your securitised product - too much perhaps :O)

What I am reading is the "sales manual" of all the securitised funders and mortgage managers we work with.

Securitised non bank lending has its place, but not where you can place that business with A grade Balance sheet lenders.


ta
rolf
 
Just received this in the mail from Westpac, as one of the 'specially selected customers'
(????????? I knew I was special, the special school said so !)
A new low interest rate at just 6.19% fixed for the first year ( comparison rate 7.33%)
And they will give me $1000 to spend however I like !!
( deposited in the transaction account 2 months after I take out or switch to their loan)

Trouble is I don't have a home loan to speak of so how do I take advantage of this brilliant offer ??

kp
 
kph said:
Trouble is I don't have a home loan to speak of so how do I take advantage of this brilliant offer ??

kp

Hi Kph,

One way to take advantage of Westpac's offer would be to buy a house!

Cheers, Medine
 
Hi KPH

beware of the chalice that sometimes hides gifts not expected :O)

In German, the literal translation of gift is poison .

Its not a bad set up, but dont get sucked in by the 1000.

The product doesnt suit manu because it has no offset and then has some restrictions into moving into the Pro pack thereafter.


ta
rolf
 
Thanks for the tip Rolf.
I should have clarified that the offer is part of a Premier Advantage Package.

I currently have a Breakfree with ANZ but all loans that were taken out have since been repaid, so no loans with them so am not sure how it works ? ANZ don't seem to bother from what I can see. Still have the fee free creditcard, but I guess I will still cop the annual charge ?

Was not tempted by the 'free' $1000 as I am sure it would cost that in mortgage stamping and break cost to convert one of the existing loans over to it, so the only advantage would be the lower interest rate which is not worth taking up for all teh hassle and expense involved.

BTW, is the premier advantage pack anything like the pro pack ??

kp
 
Hi all,

Inspired by this thread, and having had some major problems with ANZ (not setting up our offset account properly, charging us double fees 3 times, charging incorrect interest) - I spoke to them today about getting a lower rate. We currently get .6% off the variable rate, we're with the Breakfree package with a loan of $265k and preapproval for an additional 335k. They said they were happy to match other banks offers of .7% or .8%, but wanted something in writing that other banks are offering these rates.

So, does anyone here who has negotiated with ANZ before had to do this? Is there anywhere available to the public that this .7% and .8% discounts off variable are listed? Or any other suggestions?

Cheers,
Jen
 
JenD said:
So, does anyone here who has negotiated with ANZ before had to do this? Is there anywhere available to the public that this .7% and .8% discounts off variable are listed? Or any other suggestions?

Cheers,
Jen

Hi Jen,
Westpac are advertising 0.7% off freely to anyone over $250,000 --> direct your friendly ANZ Loan Manager to the Westpac website :D

Cheers
Mike
 
JenD said:
Fantastic! Thanks MikeF!

Anyone know of anymore out there?


Cheers,
Jen
JenD,

My attachment here might help you. Its the cover page on my new loan with WBC. You can see in the section titled "Annual Percentage Rate" that they are offering me two subtracted discounts of 0.30% and 0.40% respectively. That's a total subtracted discount of 0.70% pa. The reason there's two is that this is on an 85% lend with no LMI. The normal "maximum" discount on that lend with no LMI is 0.40%, but I asked for more and they took the further 0.30% off.

Rolf, that might help you when negotiating with WBC for your clients too hey? ;)

Gee I'm good to you guys! :D

Cheers,
Michael.
 

Attachments

  • WBC Loan Cover Page.pdf
    39.8 KB · Views: 284
Thanks Michael! Wonderful!!

If anyone else is looking, I also found St George adverstising .7% off standard variable 250-500k (with no annual fee!).

Cheers,
Jen
 
JenD,

I'm with the breakfree package from ANZ and i tried to get my branch manager to come to the party and give me 0.8% discount last week (currently getting 0.7% after previous negotiations). However she explained that since my total lending is only $380K she wouldnt be able to get it through to pricing dept.

I think to get 0.8% you'll need to have considerable lending, possibly over 1mil. But I'd been keen to hear from anyone who has 0.8% discount off of SVR with lending under $500K.

In previous negotiations, all i did was ask.

Good luck

Cheers,

Damon
 
MichaelWhyte said:
The normal "maximum" discount on that lend with no LMI is 0.40%, but I asked for more and they took the further 0.30% off.

Hi Micheal,

Do you think this is because it is a 10 year P&I loan? I haven't done the math but I'm guessing that at this repayment rate after one year you'd be at an 80% LVR anyway. I'm sure Westpac figured this too and that's why they gave it to you.

It's good to know though that they are negotiable at an 85% lend, as at first they said they wouldn't be.

I'd love a 85% lend, no LMI and the 0.7% off, but would want I/O forever and ever.


Regards,

David.
 
Whoops - I've just re-read the PDF and can see it is an IO.

Well done! Did you do the negotiations yourself or through a broker?
 
DavidMc said:
Whoops - I've just re-read the PDF and can see it is an IO.

Well done! Did you do the negotiations yourself or through a broker?
Yep, its interest only.

I did the negotiations myself. I had existing loans at an 0.80% discount to the standard variable and basically asked them to match that rate on my new loan but to an 85% lend. They weren't too receptive initially and came up with an 0.80% discount but only to an 80% lend. They bridged with a P&I loan for the 5% lend over three years but that really stuffed my cashflow adding another $1000pm to my repayments for that little 5% lend. So I went back and insisted on an 85% I/O lend and said give me your best offer. My personal banker then got them to agree to the 0.70% discount to 85% with no LMI. She also said that if we run it like that for six to 12 months then she can go back to retention and try and get them to drop the rate to the 0.80% discount to match my other loans.

I'm happy with that outcome.

Cheers,
Michael.
 
MichaelWhyte said:
Yep, its interest only.

My personal banker then got them to agree to the 0.70% discount to 85% with no LMI.

Michael, how do you get one of these personal bankers. I've been with Westpac for years and have never gotten one? I have had all of my loans with them through a mortgage broker though, don't know if that makes any difference.
 
luckyone said:
Michael, how do you get one of these personal bankers. I've been with Westpac for years and have never gotten one? I have had all of my loans with them through a mortgage broker though, don't know if that makes any difference.
You got it in one. You won't get a personal banker if you're going through a broker. I'm not advocating ditching the broker, but I was introduced to WBC via a broker and got really crappy service from them (WBC) initially. I then said that I wanted to borrow a heap more money soon and could I please have a personal banker? They appointed one immediately and she's been negotiating on my behalf ever since. She even got me a further 0.20% off the rate that the broker got me when bringing me to the bank on that initial loan. I was a bit shocked, but am more than happy with the service she has given me since taking me on as a client.

I am a bit of a pushy fellow though. I even negotiated for my broker to rebate me $1,000 of his leading commission on the initial referral too. ;)

Cheers,
Michael.
 
Westpac - .8% discount

Hi Michael

many thanks for sharing with us the details of the .8% discount from the IP loan/s with Westpac.

Regards

Tony
 
0.8% Discount

Hi Damon,

You can get a 0.8% discount with loan amounts well under $1 mill, my brother (a broker) managed to get 0.8% off for a $400K loan in Octrober last year. I tried to attach a copy of the offer, but it's too large. In the current environment for loans over $400K you can probably get 0.75%, and 0.8% once you get over about $700K. These are always case by case though, so you can never be sure.

Regards
Alistair
 
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