All Topics / Finance / Discount from standard variable rate for major banks

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  • Profile photo of lopethalopetha
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    @lopetha
    Join Date: 2007
    Post Count: 82

    Hi all,

    Just wondering for people who have recently taken out loans with major banks, what sort of discount they have been offered off the standard variable rate? I spoke to my bank who said due to the tightening of lending with the whole sub prime stuff etc, that they only offer a max of 0.7% off the standard variable rate regardless of the loan size unless another major bank will beat it. I have rung around but it seems that no other major banks will do more then 0.7% off either. Just a year ago I knew someone who managed to get 0.85% off the standard variable rate and they have borrowed half the amount that I have. Anyone else noticed the same thing?

    Profile photo of xpine73xpine73
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    @xpine73
    Join Date: 2008
    Post Count: 23

    yeah i heard the same thing. But also heard some mates have still managed to get 0.85% off from Westpac. I will have a chat with Westpac tomorrow and keep you posted. Cheers.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Recently got a client 0.9% but the loan was $1M +

    0.8% is standard.

    Richard Taylor | Australia's leading private lender

    Profile photo of lopethalopetha
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    @lopetha
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    Post Count: 82

    Thanks Richard, much appreciated. I just sent you an email.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    No worries Zayne.

    Have just answered it.

    Richard Taylor | Australia's leading private lender

    Profile photo of xpine73xpine73
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    @xpine73
    Join Date: 2008
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    I got 0.85% off the standard variable rate from Westpac today, with a $300k size Rocket Repay home Loan.

    Profile photo of lopethalopetha
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    @lopetha
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    0.85% off $300K is good going. Congrats.

    Would also love to hear what others who have recently taken out loans are getting.

    Profile photo of xpine73xpine73
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    @xpine73
    Join Date: 2008
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    It took me only half an hour to get this deal. There is probably still some headroom to squash.

    Profile photo of Alistair PerryAlistair Perry
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    @aperry
    Join Date: 2004
    Post Count: 891
    xpine73 wrote:
    I got 0.85% off the standard variable rate from Westpac today, with a $300k size Rocket Repay home Loan.

    If this is true the banker who quoted you the rate is going to have great trouble getting this signed off, Westpac have a stated policy of not discounting loans under $800K, they used to discount at lower amounts but not in the current climate. I hope they go through and give you this discount, if so you have done particulalry well.

    Regards
    Alistair

    Profile photo of xpine73xpine73
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    @xpine73
    Join Date: 2008
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    Thanks Alistair.

    I really think this kind of discount is just one of their sales tricks. Coz I was told next week their standard rate will be 9.27% up from 8.97%  to reflect the latest official rate rise, 0.3% up instead of 0.25%. Even with 0.85% discount that I got, it will still be 8.42%, well above many other lenders on the market, let alone the $395 annual fee that I have to bear for the professional package to get this discount. Boosting the rate then giving customers more "discount",  does not help a lot except for making borrowers feel better.

    Profile photo of not_so_luckynot_so_lucky
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    @not_so_lucky
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    Post Count: 121

    What's the biggest discount people have managed to get from CBA?

    Profile photo of not_so_luckynot_so_lucky
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    @not_so_lucky
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    CBA offered to waive the account keeping and the application fees for our $350,000 loan. Is this good enough or should I try to get more out of them? :)

    Profile photo of not_so_luckynot_so_lucky
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    @not_so_lucky
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    xpine73 wrote:
    I got 0.85% off the standard variable rate from Westpac today, with a $300k size Rocket Repay home Loan.

    Did you have to pay for their

    Establishment fee
    • $600
    Annual service fee
    • $199

    http://www.westpac.com.au/internet/publish.nsf/Content/PBHLPR+Rocket+Repay+Home+Loan

    Profile photo of v8ghiav8ghia
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    @v8ghia
    Join Date: 2005
    Post Count: 871

    Must admit that unless someone is after a fixed loan, or offset facility, for a PPOR especially, or a sub 250k IP, why would you go past one of the so-called basic variable homeloans. Some of these loans are .7 (.8 for 'introductry ones if you are looking short term, though I'm not a fan of intro loans) and a couple of the banks even have no monthly fees either! Same discount, no annual or monthly fees, and you get redraw if required. And when rates go down…….. IF all you want is a homeloan without transerrifng cards, banking, and the other things mentioned, I reckon a base variable loan now is a no brainer…..   

    Profile photo of xpine73xpine73
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    @xpine73
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    not_so_lucky wrote:
    xpine73 wrote:
    I got 0.85% off the standard variable rate from Westpac today, with a $300k size Rocket Repay home Loan.

    Did you have to pay for their

    Establishment fee
    • $600
    Annual service fee
    • $199

    http://www.westpac.com.au/internet/publish.nsf/Content/PBHLPR+Rocket+Repay+Home+Loan

    I got that discount with a professional package which costs me $395 annual fee. The application fee and $199 annual fee have both been waived. So nothing upfront, $395 is all I have to pay annually.

    PS: Heard people got 0.8% off from CBA with a $500K size home loan.

    Profile photo of xpine73xpine73
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    @xpine73
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    Post Count: 23
    v8ghia wrote:
    Must admit that unless someone is after a fixed loan, or offset facility, for a PPOR especially, or a sub 250k IP, why would you go past one of the so-called basic variable homeloans. Some of these loans are .7 (.8 for 'introductry ones if you are looking short term, though I'm not a fan of intro loans) and a couple of the banks even have no monthly fees either! Same discount, no annual or monthly fees, and you get redraw if required. And when rates go down…….. IF all you want is a homeloan without transerrifng cards, banking, and the other things mentioned, I reckon a base variable loan now is a no brainer…..   

    Basic variable homeloans are usually less flexible and with very limited features. I personally like my money to work hard for me, so free redraw is a must. In addition, they normally dont work with professional packages, which means you may hardly talk down  the rate further. Yes the rate is relative low, but not that low as you may get with a package. In another word, it is less negotiable.

    Profile photo of v8ghiav8ghia
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    @v8ghia
    Join Date: 2005
    Post Count: 871

    [Basic variable homeloans are usually less flexible and with very limited features. I personally like my money to work hard for me, so free redraw is a must. In addition, they normally dont work with professional packages, which means you may hardly talk down  the rate further. Yes the rate is relative low, but not that low as you may get with a package. In another word, it is less negotiable. [/quote]

    Agreed – however if we are talking about the 'majors', other than some that have a monthly account fee (ie ANZ Money saver loan) most if not all ofer virtualy the same 'flexibility', other than the point I mentioned in my first post. Redraw is available, extra repayments can be made etc. And sure, you can't include most as part of a 'package' that has annual fees, but if the rate on the basic loan is less, really why would you? THe only thing you would save on is an application fee. But, if youonly have one or two loans and don't plan anymore, it is a moot point. An these loans can be switched to a 'pro pack' type loan later for zip if you decide to go for a package. There are a couple of banks at presnet offering a .7% disocunt from the standard rate for a BVR. …kinda makes sense from where I see it.  Money is better in your pocket….

    Profile photo of not_so_luckynot_so_lucky
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    @not_so_lucky
    Join Date: 2008
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    Just got off the fone with a lady from CBA she said 0.7 is the standard but to get 0.75 off they need to fill out a lot of paperwork and submit it to their head office bla bla bla

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Yes NSL and why would you bother when you can get 0.8% without really trying if the loan size is big enough.

    Richard Taylor | Australia's leading private lender

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
    Post Count: 970

    Hi All
    Has anyone be able to negotiate 0.06% off disc from ING without paying extra A$499 for loan >=300k?
    i.e. 8.68%. Please let me know
    Thanks

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