CBA Variable Rate
- Thread starter Bungee
- Start date
I would be really taking a look a switching broker/banker. They clearly aren't putting the customer first. As mentioned by other brokers CBA isn't always a front runner in this space <$250k. CBA might meet some specific future needs which might make sense.
But saying might be able to get 0.50% more, please thats the standard offering... requires ZERO work. Your broker could look to go to CBA's pricing team and request further discount very simple, pending LVR should be able to get discount closer to 0.70%
This is the explanation i was given with regards to the rate i was given.
The rate is the CBA?s standard variable rate. There is eligible discounting of 0.50% under their package, see attached. Annual fee would apply.
That said, don?t make it all about rate or you won?t achieve your goal of building a property portfolio: Why?
1. Rate?s determined by a lot of different things such as the purchase price and loan amount, special offers or what existing business you already have with the lender. We aren?t rate chasers and don?t chase the lowest rate available. That?s not our value proposition unlike a majority of brokers who only sell on rate. Those low rate products are wrong for investors. We look to get you into the right loan that will move you forward.
2. Our time?s better spent on getting your loan approved than sucking up to the banks to get an extra 10 bps of discounting
3. We may refinance your loan to a different lender after a short period anyway if that will help you move ahead. Let?s say, you get a the rate benefit now that saves you $200 pa in interest and you refinance after six months. Would that be worth it if your refinancing costs were, say, $500 - $600 to go to a different bank that will give you more equity or allow you to borrow more?
4. If you do, however stay with CBA, discounting will increase under the package as your total borrowings with them increase.
The rate is the CBA?s standard variable rate. There is eligible discounting of 0.50% under their package, see attached. Annual fee would apply.
That said, don?t make it all about rate or you won?t achieve your goal of building a property portfolio: Why?
1. Rate?s determined by a lot of different things such as the purchase price and loan amount, special offers or what existing business you already have with the lender. We aren?t rate chasers and don?t chase the lowest rate available. That?s not our value proposition unlike a majority of brokers who only sell on rate. Those low rate products are wrong for investors. We look to get you into the right loan that will move you forward.
2. Our time?s better spent on getting your loan approved than sucking up to the banks to get an extra 10 bps of discounting
3. We may refinance your loan to a different lender after a short period anyway if that will help you move ahead. Let?s say, you get a the rate benefit now that saves you $200 pa in interest and you refinance after six months. Would that be worth it if your refinancing costs were, say, $500 - $600 to go to a different bank that will give you more equity or allow you to borrow more?
4. If you do, however stay with CBA, discounting will increase under the package as your total borrowings with them increase.
This is BS literally takes me 30 seconds to send a pricing request, for new funds get a decision straight away doesn't need to go to the pricing team. If wanting to ask for more then the 'auto pricing decision' then usually get a decision back within 2 hours. If then still not happy with this, then need to spend time sucking up to the big wigs for better discounts.
This however is the truth, if you're plannig to buy again and using CBA you discount will dramatically increase once >$250k in borrowings as mentioned previously. But again not if your broker is lazy and just gives you the standard discount and doesn't take a couple of minutes to save you thousands.
Rate isn't the most important thing, but always need to offer the best for the client.
This however is the truth, if you're plannig to buy again and using CBA you discount will dramatically increase once >$250k in borrowings as mentioned previously. But again not if your broker is lazy and just gives you the standard discount and doesn't take a couple of minutes to save you thousands.
Rate isn't the most important thing, but always need to offer the best for the client.
Thanks Brady, I have purchase two IP in the last two weeks. So i actually need two loans. Im thinking maybe this is his plan to ask for further discounting once i apply for the second loan?
Yes if that's the case then wouldn't be too concerned. I've given clients 0.50% discount (at the time pricing wasn't strong and LVR etc) but 12months on was able to price it lower with increase in value (lower LVR and better pricing on offer), which then followed by them purchasing again with further discounts.
The features outweighed the rate.
If you purchased 2 more, in coming months it wont matter. Just make sure your broker isn't lazy and gets you the MAXIMUM discount available and ensure it's applied to this loan as well as the new borrowings. They really should of done this for you for this loan, it would of been quicker to get the discount then to respond to you being concerned about the rate.
Rate is determined by a number of factors and I agree that rate is probably not the most important thing for investors, but it's always important. To make the statement that low rate products are wrong for investors is not true either.
That's rubbish. I did a CBA pricing request for a client whilst chatting to her over the phone this afternoon (whilst writing this post). It's not exactly the friendliest process for the borrower, but it's not time consuming. We're doing this as part of the services for almost every deal right now, regardless of the lender.
If they can't figure out several likely scenarios for your next move and pick a lender that meets those future needs without refinancing, they probably should stop working with investors. Choosing the most suitable lender is also about considering future goals and needs.
Yes it will, but they'll have to do a pricing request to make it happen, except they already said they don't do this because their time is better spent doing other things.
I think they need to learn how to communicate more effectively with their clients. People don't need to know every little aspect of lending, but you can't expect people to operate effectively on the principal of "Shut up and trust me".
Loan amount circa 1.2<; LVR 80%<; 4.65%.
Not as good a rate compared to what others might be getting from NAB but CBA has been very easy to deal with.
Agreed, CBA is good at equity release, less declarations forms to sign.
4.65% is a great rate you got their from CBA. Hope CBA will pass the 0.25 cut, and your new rate becomes 4.40%
4.65% is a great rate you got their from CBA. Hope CBA will pass the 0.25 cut, and your new rate becomes 4.40%
Yes, anticipated a potential rate cut and submitted a cheeky request on the basis that I am about to close another purchase. Managed to get a quick revision from 4.74 in the morning, in time to lock in the new rate prior to the announcement.
Branch manager said head office must be feeling generous today.
Please do post back here for the Fixed 3 and 5 years... I feel it's nearing the bottom for fixed.
Yah CBA first of the big 4 to pass
http://www.smh.com.au/business/bank...t-to-home-loan-customers-20150204-135i7w.html
http://www.smh.com.au/business/bank...t-to-home-loan-customers-20150204-135i7w.html
my broker said: CBA has dropped their 3 and 5 years fixed rates to 4.54% under the package. decision time.
