Join Australia's most dynamic and respected property investment community

1.35% of standard variable CBA

Discussion in 'Property Finance' started by Tillie, 30th Nov, 2015.

  1. Tillie

    Tillie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    248
    Location:
    Melbourne
    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.
     
  2. Marty McDonald

    Marty McDonald Mortgage broker

    Joined:
    22nd Jun, 2015
    Posts:
    228
    Location:
    Sydney North Shore and Norther beaches
    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.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,103
    Location:
    Melbourne, Nationwide
    For a 90% lend, that's a good deal from the CBA.
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,148
    Location:
    Canberra and Sydney
    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
     
  5. Tillie

    Tillie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    248
    Location:
    Melbourne
    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.
     
  6. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    862
    Location:
    Sydney (West) and Canberra
    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
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,165
    Location:
    Gold Coast
    cba pricing engine needs a service ........... its stutters and misfires a fair bit, esp with existing retention business

    ta
    rolf
     
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,148
    Location:
    Canberra and Sydney
    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
     
  9. Watson1

    Watson1 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    111
    Location:
    Melbourne
    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...
     
  10. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    862
    Location:
    Sydney (West) and Canberra
    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).
     
  11. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,148
    Location:
    Canberra and Sydney
    It's weird but it does - generally just use NAB as the competitor.

    Cheers

    Jamie
     
  12. Bran

    Bran Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    3,220
    Location:
    At work
    Watching with interest.

    Gees, you brokers need to keep on your toes!
     
  13. Watson1

    Watson1 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    111
    Location:
    Melbourne
    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.
     
  14. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    862
    Location:
    Sydney (West) and Canberra
    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.
     
  15. Watson1

    Watson1 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    111
    Location:
    Melbourne
    Here is another tip Redom, they dont care if you put P+I in the pricing and the app is IO.
     
    Redom likes this.
  16. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    862
    Location:
    Sydney (West) and Canberra
    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.