What are you paying for your Variable rate?
- Thread starter thedude
- Start date
You guys rock!
Having read this thread, I just gave my "relationship manager" at WBC a call. All I asked was "Am I on the 6.72% rate?" and she countered with "I can get you on 6.62% if we do a $1,000 top-up so I can restate it!" How unreal, I didn't even have to ask for the reduced rate, she came right out and offered it!
I then mentioned how a "friend" of mine worked at ANZ and mentioned the Breakfree account and 6.62% and she was like "hahaha no, no, no, you don't need to do that..."
Might not sound like much, 0.1%, but that's $500pa and compounding over the term of the loan. Pays my full annual fee of $390 with a bit left over!
Love this forum,
Michael.
Having read this thread, I just gave my "relationship manager" at WBC a call. All I asked was "Am I on the 6.72% rate?" and she countered with "I can get you on 6.62% if we do a $1,000 top-up so I can restate it!" How unreal, I didn't even have to ask for the reduced rate, she came right out and offered it!
I then mentioned how a "friend" of mine worked at ANZ and mentioned the Breakfree account and 6.62% and she was like "hahaha no, no, no, you don't need to do that..."
Might not sound like much, 0.1%, but that's $500pa and compounding over the term of the loan. Pays my full annual fee of $390 with a bit left over!
Love this forum,
Michael.
Thanks for putting us onto the deals offered by WBC and ANZ.
I was on the choice package with NAB (.5 off, $375 pa fee), so I did some shopping around and was offered the .7 off from both wbc and anz. I asked nab if they would match it and they said no. I asked if they would waive the package fee and again they said no. So I said well in that case we will be departing company. I have been getting great service from one of the wbc loan managers so I will be going with them, I also had the package fee reduced to $199 pa. I really like the offset account that wbc and anz offer, being a proper 100% offset account where as the NAB and commonwealth only give you the interest earnt in the account towards the mortgage.
All up it is going to be saying me around $1300 a year.
I couldn't believe the lack of interest shown by NAB, I guess they thought I was just bluffing and wouldn't really refinance.
I was on the choice package with NAB (.5 off, $375 pa fee), so I did some shopping around and was offered the .7 off from both wbc and anz. I asked nab if they would match it and they said no. I asked if they would waive the package fee and again they said no. So I said well in that case we will be departing company. I have been getting great service from one of the wbc loan managers so I will be going with them, I also had the package fee reduced to $199 pa. I really like the offset account that wbc and anz offer, being a proper 100% offset account where as the NAB and commonwealth only give you the interest earnt in the account towards the mortgage.
All up it is going to be saying me around $1300 a year.
I couldn't believe the lack of interest shown by NAB, I guess they thought I was just bluffing and wouldn't really refinance.
Ace,Ace73 said:Thanks for putting us onto the deals offered by WBC and ANZ.
I was on the choice package with NAB (.5 off, $375 pa fee), so I did some shopping around and was offered the .7 off from both wbc and anz. I asked nab if they would match it and they said no. I asked if they would waive the package fee and again they said no. So I said well in that case we will be departing company. I have been getting great service from one of the wbc loan managers so I will be going with them, I also had the package fee reduced to $199 pa. I really like the offset account that wbc and anz offer, being a proper 100% offset account where as the NAB and commonwealth only give you the interest earnt in the account towards the mortgage.
All up it is going to be saying me around $1300 a year.
I couldn't believe the lack of interest shown by NAB, I guess they thought I was just bluffing and wouldn't really refinance.
Interesting, I too parted ways with NAB to come over to WBC. I think they need to do some soul searching...
Cheers,
Michael.
Ace73 said:
As previously mentioned I'm also with WBC on their premier advantage package.
This year so far its saved $6176 on establishment & ongoing monthly fees, plus on top of that, a couple 0.7% interest rate discounts on 2 Loc accounts.
Not too bad for a $395 annual tax deductable fee
Homepath will do a nice low rate with minimal fees :O), but is rate truly all thats important ??? for if it is there are some really bog basic products out there offered by the mortgage managers................ but dont ask for things like Interest Only or extra repayments or heaven forbid
The reality is that if structured the right way there isnt a good reason why WBC product shouldnt be able to to get to 6.57 or so, with all the flexibility that type of product brings. That rate is achievabe with or wothout broker service, as is the rate with most lenders.
The vast majority of lenders realise that the trail margin NOT paid on non broker loans ( or branch set up loans) is sucked up by costs that the lender carries like premises, advertising and marketing etc. The cost base for a broker introduced loan is lower than a branch loan even taking into acct the comms paid.
ta
Rolf
The reality is that if structured the right way there isnt a good reason why WBC product shouldnt be able to to get to 6.57 or so, with all the flexibility that type of product brings. That rate is achievabe with or wothout broker service, as is the rate with most lenders.
The vast majority of lenders realise that the trail margin NOT paid on non broker loans ( or branch set up loans) is sucked up by costs that the lender carries like premises, advertising and marketing etc. The cost base for a broker introduced loan is lower than a branch loan even taking into acct the comms paid.
ta
Rolf
Hi all,
Would advise against HomePath (can't comment on other low rate lenders) as they have been nothing but trouble. Totally inflexible and I nearly came to grief several times with them and had to be rescued by Rolf. Now I see the light.
Worth paying an extra 0.1% or 0.2% for much better service & flexibility.
I'm currently with WestPac and impressed - thats not to say I don't want to squeeze their 6.72% with Prof package a little more.
Ian
Would advise against HomePath (can't comment on other low rate lenders) as they have been nothing but trouble. Totally inflexible and I nearly came to grief several times with them and had to be rescued by Rolf. Now I see the light.
Worth paying an extra 0.1% or 0.2% for much better service & flexibility.
I'm currently with WestPac and impressed - thats not to say I don't want to squeeze their 6.72% with Prof package a little more.
Ian
Hi Gang,
I'm with NAB and without being too pushy I have been able to get a 0.75% discount on Var rate P&I loans through their professional package. If your loans are approaching or over the 1 mil mark and you can realistically support the loans then a 6.57% rate or better shouldn't be a problem. Although I have found that a lot depends on the quality of your personal banker. The NAB personal banker I have had for a few years now is absolutely fantastic and makes everything sooo easy.
Cheers - Gordon
I'm with NAB and without being too pushy I have been able to get a 0.75% discount on Var rate P&I loans through their professional package. If your loans are approaching or over the 1 mil mark and you can realistically support the loans then a 6.57% rate or better shouldn't be a problem. Although I have found that a lot depends on the quality of your personal banker. The NAB personal banker I have had for a few years now is absolutely fantastic and makes everything sooo easy.
Cheers - Gordon
mid 6s is achievable for 5s and around 6.45/6.5 for 3.
Until recently there were some quote aggressive deals around like ABL for 6.55 fixed 5 years io with 100 % offset for 5 years - we did a fair bit of that.
ta
rolf
Until recently there were some quote aggressive deals around like ABL for 6.55 fixed 5 years io with 100 % offset for 5 years - we did a fair bit of that.
ta
rolf
Rixter,Rixter said:
Was that to lock in an interest rate so you had certainty about your future cash flow liabilities, or do you expect this to be the more profitable rate for you over that period?
I only ask since my current variable rate with WBC is 6.62%. All it would take is a 25 basis point drop in official interest rates some time in the next 3 years and my variable rate would better both those you've locked in. In fact my current variable is pretty much on par right now with your second rate of 6.59%.
It all comes down to crystal ball gazing, but history has shown that the banks make more money when you lock your rate than if you don't on average. I'll leave the crystal ball gazing to them and just float my rate. I too personally believe rates have more downside bias than upside in the medium term. Just MHO.
Cheers,
Michael.
MichaelWhyte said:
Hi Michael,
I have a large amount on loans from WBC.
My main aim is for risk minimisation, providing me SANF. The rates I have locked in at are still lower than my "discounted" variable rate, so I'm actually locked in lower for the next 3 years than I would otherwise be. - The extra cashflow currently is just a bonus.
Should rates go down I look at it as being an Insurance Premium for the extra SANF.
Hope this helps
Spoke to a Financial adviser yesterday and he said:
"If you don't know what your interest rate is, you are paying too much"
How true
GG
"If you don't know what your interest rate is, you are paying too much"
How true
GG
Woohoo!
Thanks mostly to this post from Dale, I just managed to get my current PPOR, LOC and pre-approval for my IP variable rates all reduced to 6.52%, or an 80 basis point reduction on the standard variable rate. This is an ongoing reduction that is locked in at 80 basis points!
Thanks so much to you guys here. I wouldn't have even questioned my 6.72% rate except for this thread, and then it gave me the ammunition to get my priority banker to take a case for 6.52% to the retention department, and it worked!
My loans are currenty $220K (PPOR), $410K (LOC) and $450K (IP pre-approval), so will total about $1.1M when I get that IP. So, a 20 basis point reduction in my rate will save me about $2,000 a year! No small fry that.
Thanks guys,
Michael.
Thanks mostly to this post from Dale, I just managed to get my current PPOR, LOC and pre-approval for my IP variable rates all reduced to 6.52%, or an 80 basis point reduction on the standard variable rate. This is an ongoing reduction that is locked in at 80 basis points!
Thanks so much to you guys here. I wouldn't have even questioned my 6.72% rate except for this thread, and then it gave me the ammunition to get my priority banker to take a case for 6.52% to the retention department, and it worked!
My loans are currenty $220K (PPOR), $410K (LOC) and $450K (IP pre-approval), so will total about $1.1M when I get that IP. So, a 20 basis point reduction in my rate will save me about $2,000 a year! No small fry that.
Thanks guys,
Michael.
Until recently there were some quote aggressive deals around like ABL for 6.55 fixed 5 years io with 100 % offset for 5 years - we did a fair bit of that.
Ta rolf[/QUOTE]
Hi Roft,
What the ABL stand for?
If it is possible, could you Please advice where I get more infos about 5 yr fixed I/O with 100% offset?
Thank you!
Sean
Ta rolf[/QUOTE]
Hi Roft,
What the ABL stand for?
If it is possible, could you Please advice where I get more infos about 5 yr fixed I/O with 100% offset?
Thank you!
Sean
