All Topics / Finance / CBA start to put the squeeze on rate discounts

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

    Loans submitted on and after Monday 23 March 2009 will be entitled to the standard Mortgage Advantage Tier discounts based on total home lending.

     

    The standard Mortgage Advantage tier discounts are:

     

    Total Home Lending Balance

    Discount

    $150,000 $349,999

    0.50% pa

    $350,000 to $749,999

    0.60%pa

    > $750,000

    0.70%pa

    Be interesting to see how the other lenders react.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

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

    I thought it is only available for wealth package…
    I might be wrong…

    5.74%-0.7% = 5.04%.. very competitive.. much better than myrate

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

    GOM

    Yes MAV is their Pro Pack and w.e.f from 23.3.09 only loans over $750K will only get the 0.7% discount.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    ANZ did similar a while back. Others will follow soon I imagine. Poor banks are not making enough profit – even though they have kept around 1% extra with the recent cuts by not passing it on.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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

    Terry

    Agreed, so much for the CBA being cheaper than everyone else with their big 100 bps reduction after the last round of cuts.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Bobbajob101Bobbajob101
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    @bobbajob101
    Join Date: 2008
    Post Count: 4

    I've found if you really push CBA then you can do better than the top end 0.7% discount, however i negotiated with them on my loans in mid '08.  If you can prove you're in a strong financial position then it's probably still worth having a go.

    My big learning – never accept their initial offer and negotiate directly, not via a broker.

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

    Bobbajob

    Hate to disagree with you but i think those days have gone.

    We usually manage to negoitate a rate better than the clients have done directly due to the volume of business we write with each lender.

    In mid 2008 we were getting 0.9-1% discount for good clients.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

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

    Mmm,
    The NAB and Westpac seem to be the most competitive with fixed rates atm, and from looking at each majors interest rates, I notice nab have just done the oppostie of what this thread mentions with the variable/package rates….and this week reduced their 'package' interest rate discounts further. ) 0.6% disc now from svr for $100k-$250k loans, and now the full 0.7 for $250k plus loans – no haggling required!  And check out the 2 & 3 yr fixed rates!. I cant help wondering if next week others will reduce the fixed rates further – and how many people will lock in this time – or be 'greedy' and see if they get even lower. I still reckon for an IP, if a 4 or 5 year rate ever gets to starting with a '5' it would make sense to 'go for it'.
    Regardless,, the 'on line' style deals/lenders now seem to offer very little if any discounts from some of the major bank deals – and possibly the best thing to negotiate to save $ with now is an application fee – or if you are really good – a package fee discount/waiver for the first year maybe! Although not a common thing with any of the 'big 4' atm.

    Times they are 'a changin.

    Cheers

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