1.6% discount by Westpac

The discount is great. How does that stack up vs advice of spreading your loans to various lenders for asset protection purposes?

 

It may represent a high % off SVR, but it's not exactly amazing in terms of actual end rate comparatively if you're only focused on rate - and considering the exposure requirements. Still plenty of lenders playing at this rate level and lower.

 

Hi All,

Just wondering if any one has had 4.3% approved on IP loans...as a variable rate.

I just got this approved......looking to take this to CBA, STG, and SunCorp to the match the rate.

No PPOR was in in the mix....

 

Nope. Which bank @sash ?

 

Westpac.

 

I've done better with CBA recently @sash. Key questions: LVR and total borrowings?

 

So what did CBA give off....borrowings North of $1.6m...

 

Are you saying you've done better than 1.57% discount on an investment loan with CBA? That would be equivalent to being better than 1.65% at Westpac given their SVR IS 8 basis points higher.

 

Sorry to confuse @Hockey Monkey, that was in reference to:

 

Are we talking about ppor or ip rate with Cba? Ppor rate at sub 4.3 yes....ip rate unlikely.

 

As a variable rate that is very good for an IP loan with CBA. I've got that fixed for some clients but not variable. As you say there must be very significant borrowings with a very low LVR.

 

That's my experience too Jamie.

 

Can't see many banks beating 4.30% for an investment loan.

I would say you have already done very well for only 1.6m loan.

Why are you looking at alternatives when you are not looking for a better deal?

 

maximum I'm seeing for CBA is 1.37% = 4.50% for IP / 4.23% PPr

If you can do better, I'd appreciate seeing it in writing

 

I was chatting with a client last week, she mentioned a friend of hers works for a major bank and is enjoying a 1.6% discount as a staff member.

I pointed that this is essentially a way the bank guarantees loyalty in its employees. It's essentially a 0.3% discount on what else is generally available. For a $400k loan it's costing the bank about $1,200 a year but people are still reluctant to switch jobs even though they might be paid significantly more than the loyalty discount.

 

Yep, the largest discount I have heard when speaking to cba RM was 1.48% for a $4.5m+ loan when we spoke about pricing which is still well above 4.30%.

1.36% is standard for CBA now for investment loans at 80%.

I think capped discount is ~1.36% and anything above needs state manager approval based on my recent experiences.

With employer discounts, I have yet to see a bank employee who has been able to obtain a discount greater than what has been offered to broker with the only exception Macquarie. Most of the discounts with employers are non negotiable and they receive a fixed discount and annual fee waived. They are generally eligible for 90% loans which is the one true benefit based on my past experience. With FBT, gone are the days bank employees obtain favourable discounts from their employers.

We see more than our fair share of bank employees and I am sure other brokers have written loans for bank employees so it would be interesting to see if others have seen large discounts provided to employees as honestly I haven't seen a fantastic rate except for one instance.

Most common scenario is that they are offered a 1% discount and waived annual fee.

 

Cba staff get best rate available to the public and as you said no annual fee no LMI to 90%

 

So was my quote. Are you saying you got better than 4.3% on an investment loan from CBA? My experience (and it appears everyone else's) is quite a distance from that level of discounting regardless of amount or LVR.

 

It is crazy that employees can't even get the level of discounting seen by their customers.

My BOM RM supposedly skipped his employee package (opted out of the no annual fee) and instead asked to be treated like his customers in a competitive environment to get a better rate. Had to get state manager approval.

 

Interesting...
My take is that the discounts wont guarantee staff loyalty as you are 95% likely to be able to continue with that rate once you cease employment with the bank (I'm working for CBA and I am 99% certain they won't change the rates if/when I leave).

I believe the rates i'm offered are pretty sharp, but then again, you can get great (even better) rates with other lenders too. The catch is, the other lenders you'd be turning to may only be relatively well known to brokers and not to the general public though.