They are probably an ex banker 
CBA Variable Rate
- Thread starter Bungee
- Start date
Sadly it's not uncommon.
I'd guess that the majority of the general broker/banker population would cross up loans. Most just don't know any better and/or can't be stuffed doing it properly.
Cheers
Jamie
Is your broker Margaret lomas?
perhaps
If you have the equity to cross, one usually has the equity to use a separate equity loan.
Its quite rare that xcoll is the preferred Borrower option.
Some reasons as to why xcoll isnt that great. this post os 10 years old and there are additional reasons these days to avoid xcoll
http://somersoft.com/forums/showpost.php?p=120656&postcount=6
ta
rolf
Re Ms Lomas, I saw that too and nearly fell of my chair and choked on my coffee all at once.
pls do see what they come back with ......................
I fully expect it can be done the right way.
if you get limited feedback, give Jess who posted above a call, I know she knows why xcoll isnt much fun for borrowers long term
ta
rolf
Well in my early days of property investing when I had little education I went to a BA seminar and then not too long after read Margaret Lomas "How to Achieve property success". Both the book and the BA spruiked X Coll and how wonderful it is and how easy it makes investing.
Thankfully I stumbled onto this forum and have since learnt the truth but I can see how the sellers of X Coll make it look so attractive to the unwary.
sad thing is that they are both correct
In most cases, there is more hassle and risk to do things properly from the start.
Ip1 to x are easier with xcoll for the bank and the broker 90 % of the time...............
Intuitively, Like most things in life, when the foundations are based on ease, convenience and direct ignorance of the future, you know for veru very sure that there is trouble around the corner when you are looking to grow beyond your CURRENT finance design.
There is an old saying that goes
you cant solve your challenges with the same thinking that created them.
And still, to this day most people will spend more time "spreadsheeting away risk" ( as if that were possible) than addressing what their real financial goals are,and to assess the risks properly on the path to those goals.
Your goals and intentions dont matter that much, your path does. if your path isnt in compliance with your goals -good luck.
If you live in Sydney, and your goal is to get to brisbane by train, and you get on the train to Melbourne, you will get the Melbourne unless you get off the path and reset.
ta
rolf
Pretty much.
Over time though the existing lending may come across to the new broker in dribs and drabs as one does equity pulls, IO renewals etc
ta
rolf
The trails stop if the loan ends (eg if paid off or moved elsewhere)
The upfront also gets clawed back if the above happens within certain timeframes.
The upfront commissions only get clawed back if the loan moves to another lender within the first 2 years. The new broker only gets an upfront commission if the loan moves to a new lender.
In many cases, the best option for the borrower is to stay with the existing lender, so the new broker only receives a trail commission (perhaps a tiny upfront if the loan is increased).
The thing that's annoying for the new broker is there's a significant cost to getting a loan approved even internally with the same lender. The previous broker gets paid for doing a bad job, but the new broker makes a loss for doing the right thing. The trail commission will bring this to a break even point in about 3 years for an average sized loan. Hardly seems fair.
Hey guys,
My loans (totaling 715k ish)are currently on 5.08% variable. I've been emailing the manager at westpac and I told her different lenders were offering lower rates, 4.6% etc, and she came back with this;
"Hi Daniel
I have looked at the advertised variable rates for Nab, CBA and ANZ and they are nowhere near 4.6%. All are over 5% for your level of borrowing.
To ensure I have investigated properly, I have also looked on Canstar rate comparison website and again there aren’t any offering a 4.6% variable rate. I have provided you a good discount on two of your existing loans which is well below the contracted interest rate that you signed. I think you may have been looking at rates for fixed interest. "
I'm not sure where to go with this.. and help would be appreciated!
My loans (totaling 715k ish)are currently on 5.08% variable. I've been emailing the manager at westpac and I told her different lenders were offering lower rates, 4.6% etc, and she came back with this;
"Hi Daniel
I have looked at the advertised variable rates for Nab, CBA and ANZ and they are nowhere near 4.6%. All are over 5% for your level of borrowing.
To ensure I have investigated properly, I have also looked on Canstar rate comparison website and again there aren’t any offering a 4.6% variable rate. I have provided you a good discount on two of your existing loans which is well below the contracted interest rate that you signed. I think you may have been looking at rates for fixed interest. "
I'm not sure where to go with this.. and help would be appreciated!
Tell them its an un advertised rate. NAB offered me 4.8% variable with my current 750k and they will try for 4.7% if they sent it to their Treasury Team.
Just tell them to transfer you to Retentions and ask for a payout figure if they cant give you a better rate. Make sure your loan
1)is not crossed
2)no LMI
3)Is not fixed
Just tell them to transfer you to Retentions and ask for a payout figure if they cant give you a better rate. Make sure your loan
1)is not crossed
2)no LMI
3)Is not fixed
You're asking too much and they're calling bull*****. The only lenders you're getting close to are the online lenders which is not a fair comparison for all sorts of reasons.
The lenders do know what pricing the others are doing.
Ask for 4.70% and you'll probably get a more reasonable response. They'll probably end up giving you about 4.75%.
The lenders do know what pricing the others are doing.
Ask for 4.70% and you'll probably get a more reasonable response. They'll probably end up giving you about 4.75%.
I have similar 700 odd of my portfolio with Westpac too like you. Was also on 5.08 ticket price. Corey (posted above) got me down to 4.74
I've got some fixed rates ending soon and enquired with my lender STG as to what rates I can expect both variable or fixed. I have some x col although if current valuations are done they would probably be able to be all standalone. Thye came back with 5.14% variable and their advertised 4.99 for 5 or 3 for 4.79. I have 1.3m with them so all you mortgage brokers out there whats my best option. I'm happy to split them between other banks if I can't get a better interest rate than that obviously
I've got some fixed rates ending soon and enquired with my lender STG as to what rates I can expect both variable or fixed. I have some x col although if current valuations are done they would probably be able to be all standalone. Thye came back with 5.14% variable and their advertised 4.99 for 5 or 3 for 4.79. I have 1.3m with them so all you mortgage brokers out there whats my best option. I'm happy to split them between other banks if I can't get a better interest rate than that obviously
Uncross while you can. Also rate offered is horrible, should be 4.7x at least for that level of borrowing. If they dont do it, refi out.
