1.35% of standard variable CBA

Got offer from the bank 1.35% off from PPOR variable loan for the life of the loan, CBA, $1.5m loan amount, 90% LVR. Should I take it or are there much better deals available? Currently I have 1.16% off.

 

Assuming you are already with them and would have to pay LMI again if you left to go to another lender then is an easy decision.

 

For a 90% lend, that's a good deal from the CBA.

 

Agree with the others - it's very good. Especially if you're already at 90% with them like Marty mentioned - the cost of refinancing at that LVR/level of borrowings would be huge.

Cheers

Jamie

 

Thanks for the quick responses.

I should probably clarify that I am getting 90% LVR, No LMI offer because of my profession. Not sure if it is available to everyone. But it looks like similar offers are available from other banks for people in my profession.

 

Its decent.

CBA work of a pricing model done upfront (similar to ordering a valuation). They seem to work on a week by week model and have slight variants each week.

1.35 sounds about right, but sometimes they can come out higher. If you could get an offer from Westpac in writing and escalate it up CBA's chain, you may be able to beat it. CBA pricing generally play ball and look to win deals.

I haven't done a 90% deal of late with CBA - but have had a few 80% deals that are substantially smaller in loan size with similar, slightly larger discounts.

Cheers,
Redom

 

agreed. I've got better things to do with my time then haggle with pricing. We usually end up getting what we want.....but they often like to play games getting there.

Cheers

Jamie

 

What is even more stupid is the you can have the same loan amount and LVR, but depending on which competitor you choose, it results in different discounts.

Also why do they even put a min and max discount, like after wasting my time seeking a discount above the package discount, I am going to choose to go with a .60% discount...

 

Haha i don't get the minimum range thing - doesn't make any sense. Didn't know the competitor makes a difference - have you noticed what works better than others?

IMO CBA pricing has been reasonably sharp for the last couple months relative to their competitors for both investment and O/O (Westpac probably has had them beat them on O/O business of late).

 

It's weird but it does - generally just use NAB as the competitor.

Cheers

Jamie

 

Watching with interest.

Gees, you brokers need to keep on your toes!

 

Yeh stick with the major banks as competitors WBC, STG, NAB and they will generally match.

Avoid using smaller players like ING as the pricing will come back worse.

I remember speaking to my CBA RM explaining to him that CBA pricing wasn't competitive and he said he was seeing a lot of 1.35% at 80% lends. Turns out because I was using ING as a competitor because they were the cheapest competitor on the panel.

He even mentioned that some of his brokers were complaining the branch were offering lower rates than the broker tool despite them using the same tool and when they went to use branch as a competitor, they were offered less than what the branch quoted.

Few months ago it was Suncorp due to the 4.15% now it is more WBC. The pricing changes ~ every fortnight so you need to find out who to use as a competitor.

At the moment CBA seem to cap out 1.35% unless you seek pricing from State Manager.

 

Hmm i've mainly used St George/Westpac mainly as the competitor, CBA seems to be really good on pricing of late (particularly for investments where comparators aren't so good).

@Watson1 - i got a 1.36% figure pop up on a deal today, total lending around 780k of which new lending about 280k, 80% P/I deal. Usually they come in round numbers like 1.35 or 1.40, so it was a little unusual. A few weeks ago a client had a 1.40% deal on sub 500k (got them to get close to Westpac's end of month specials they run).

Brady's probably got all the insight on the mechanics behind the scenes.

 

Here is another tip Redom, they dont care if you put P+I in the pricing and the app is IO.

 

Haha that last ones brilliant - it doesn't say on the comments that come out so i guess the assessors don't even see it.