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?
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.
Recently got a client 0.9% but the loan was $1M +
0.8% is standard.
Richard Taylor | Australia's leading private lender
Thanks Richard, much appreciated. I just sent you an email.
No worries Zayne.
Have just answered it.
Richard Taylor | Australia's leading private lender
I got 0.85% off the standard variable rate from Westpac today, with a $300k size Rocket Repay home Loan.
0.85% off $300K is good going. Congrats.
Would also love to hear what others who have recently taken out loans are getting.
It took me only half an hour to get this deal. There is probably still some headroom to squash.
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
AlistairThanks 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.
What's the biggest discount people have managed to get from CBA?
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?
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
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…..
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.
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.
[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….
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
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
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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