All Topics / Finance / % Discount on a 2 mil + investment loan/s

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of SAS BuildingSAS Building
    Member
    @sas-building
    Join Date: 2009
    Post Count: 25
    August 10, 2009 - 1:21 am

    Hi,
    I am looking at re-financing my investment loans as I am currently unhappy with the level of service received from WBC on the last couple of deals completed.
    I also feel that with a loan/s of around 2.5mil on properties bank valued at 3.2mil, I should be getting a higher discount on a variable loan than the .8 % currently receiving.

    I have had my broker look into other options and the best he has come up with is Bank Wests ‘rate tracker ultra’ loan at 4.87% (.9% disc for three years).

    I am not sure if I am asking too much but am looking for a 1 – 1.2% discount on this loan amount. Does anyone know of a lender that can provide this ???

    Profile photo of SAS BuildingSAS Building
    Member
    @sas-building
    Join Date: 2009
    Post Count: 25
    August 10, 2009 - 1:50 am

     People Watching Anyone ?? 

    Profile photo of FinSpecFinSpec
    Member
    @finspec
    Join Date: 2009
    Post Count: 137
    August 10, 2009 - 3:08 am

    We've managed to put a few loans through of that size recently at the 1% discount mark, however we have not been able to do anything more than 1% for a while now – the banks are just not as competitive as they used to be. 
    Loan quality also plays a role in the discount that you can get now.
    Keep trying, it's possible to do it !!!  If you keep hitting a brick wall, let me know (Message me) and I'll point you in the right direction.

    FS

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    August 10, 2009 - 3:44 am

    Without being funny at a 78% lvr you are unlikely to get any lender offer much more than the Bank West 0.9% discount.

    In the good old days we regularly obtained 1-1.2% discount for our bigger clients however now a days 0.9% is Max.
    Lenders dont feel they need to offer anything else as the competition has disappeared.

    Course if all depends on what the SVR is in the first place. A 0.9% discount isnt much chop if the lenders SVR is 0.2% higher from Day 1.

    Last issue is getting the loan approved and Bank West will want everything.

    Richard Taylor | Australia's leading private lender

    Profile photo of SAS BuildingSAS Building
    Member
    @sas-building
    Join Date: 2009
    Post Count: 25
    August 10, 2009 - 4:07 am

    Thanks both for your input..

    Finspec – could you elaborate a little more on ” Loan quality also plays a role in the discount that you can get now”

    and Richard, I am currently trying to run the tricky balance between maximising loan amounts for IP’s (to reduce tax) and getting a good deal on finance. If i was to add some of my own funds to reduce my LVR do you think i would be eligible for further discounts and if so what LVR would the banks be happy with ??

    Thank you again for your information and help

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    August 10, 2009 - 5:44 am

    Hi again

    I think the LVR would need to be down to around 60% before you got a better discount.

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    August 10, 2009 - 11:13 am

    I just got a client 1% discount on $1.2million loan with a major bank.

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

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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