What Bank Discounts Are You Getting.

[Francesco]

Just gotta squeeze hard enough and they'l crack under the pressure.

After all the squeezing that can be applied by investors, the big four banks still come out with some of the best banking profits in the world as there is so much capacity for soaking up profits in Australia.

 

[Blacky]

Im paying 6.8% at St George. It is either 1% or 1.1% discount.

The big one for me is the fact that I pay no fees (annual or monthly) on the accounts. When I first moved they had a big push on in WA and the local lenders could discount almost anything. At the time I only had a small loan so saving $300/year on the package fee equated to more than .1% discount. So I took that and then negotiated a better discount when I took on a bigger loan .

Currently sitting at a bit over $1mil in debt with them.

Cheers & Good luck.
Blacky

 

[Rixter]

Thanks Blacky...is that a package discount?

 

[skater]

I'm on the same package as you Rixter and had 0.9% on some with the newer lending sitting at 0.7%. I had tried before to get everything on the higher discount and was unable to but have now secured 0.9% across the board, except for the LOC's.

I have a standard professional package at a Building Society, however have not been able to budge on the discount on this. Currently around 0.4%. The interest rate is similar to my other lending though, so does not really bother me.

 

[Rixter]

I had tried before to get everything on the higher discount and was unable to but have now secured 0.9% across the board, except for the LOC's.

Thanks Skater... all the IP loans I have with Westpac are currently fixed @ 4.99%. I have 2 other investment LOC's with them which each have 85bp discount applied.

 

[skater]

Thanks Skater... all the IP loans I have with Westpac are currently fixed @ 4.99%. I have 2 other investment LOC's with them which each have 85bp discount applied.

Oh, lucky you. I've got a nice large one fixed at 4.99% but missed out on the rest.

 

[Blacky]

Thanks Blacky...is that a package discount?

Yeah, it is - A Professional Pack, or Pro Pack, or some other fancy pancy marketing slogan that some goof ball in a cubicle came up with thinking it would mean something to clients

Somehow I have ended up with three 'packs' as I have loans secured by 5 properties. But then you can split each pack into smaller sub-accounts.

I have ended up with heaps of sub accounts - I think I currently have about 10 accounts. This is now pointless, I just havent got around to re-consolidating them.
But as I dont pay fees on any of them, it doesn't really make much difference, except for the increased paper work.

Cheers
Blacky

 

[Rixter]

Thanks Blacky

 

[Brett IP]

0.91 discount with Westpac on < $1m Loans, discount applies to 2 loans including a LOC & will also apply to the largest fixed loan once it ends next year (not that I want it to at 5.19%).

I also got 0.4% off their fixed rates, in January, so locked away an IP for 3 years.

Seems I did OK, boy did I hound the bank manager

 

[Brett IP]

Oh, and that 0.4% discount off the fixed rates was after the standard 0.2% discount offered under the package, so 0.6% really

 

[NoCredit]

I read here LINK that Westpac are again offering 95% LVR Plus LMI = total 97% LVR??? This seems like a dramatic and risky loosening of credit. Can any brokers confirm if its true?

 

[Rolf Latham]

Yes.

BUT

97 has been available to existing clients all trhough the GFC and echo ( as has been the case with many lenders)

Loan amount limits have gone up a fairbit though.

WBC now offloads the individual risk over 90 % to Genworth

ta
rolf

 

[Ms Jade]

Oh, and that 0.4% discount off the fixed rates was after the standard 0.2% discount offered under the package, so 0.6% really

Wow! That's a great deal. I had no luck trying for fixed discounts last year, but I always just phgne W'Pac. Seems like speaking to the branch may be the way to go.

 

[refundhomeloans]

Westpac

The market is changing everyday. Westpac now will do 97% inc LMI to new and current customers. Most banks now lend up to 95% and will cap LMI (Lenders Mortgage Insurance)