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CBA "professional package" discount? what's the max discount?

Discussion in 'Property Finance' started by Danielt25, 18th Jan, 2016.

  1. Danielt25

    Danielt25 Active Member

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    Brisbane Qld
    hi, I'm refinancing the PPOR - variable rate (I/O 10 years) - loan size $1.75m
    90% LVR but no LMI (no LMI the carrot) - offered 1.4% discount off SVR bringing rate to 4.2% Variable.
    professional package fees of $395pa

    Initially banker said she's "never seen" any discount greater than 1.3% ... maybe they just tell you that so you think you're getting a good deal ... then she said she had been working on the loan and she has got approval for 1.4% discount

    anecdotally any ideas how much further discounting they can do?
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Nice LVR. Nice IO Period. Nice rate.

    What more could you possibly want?
     
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  3. Marty McDonald

    Marty McDonald Mortgage broker

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    I'm not seeing any bigger than 1.40% and I do a lot of CBA over $1 mil.
     
  4. tobe

    tobe Well-Known Member

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    I got 1.35 today for a loan amount $624k.
     
  5. Redom

    Redom Mortgage Broker Business Member

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    CBA pricing is pretty sharp of late. 1.4% is what you'll get there, also do plenty of CBA lending. You can certainly get higher than 1.3%, but not much further. That story is probably to manage your expectation about 'never seeing above 1.3%'.
     
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    1.4 is great.

    Been getting 1.36 for a lot of deals - even one that was $380k at 90%

    Cheers

    Jamie
     
  7. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Sounds like a heck of an expensive PPOR...
     
  8. mini2

    mini2 Well-Known Member

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    CBA's professional package - is it another one of those accountant/lawyer/doctor's only special with a $150k minimum income?
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    Especially north of the border
     
  10. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Hell yeah...
     
  11. channon

    channon Member

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    Are the 1.3-1.4% discount for PPOR only or for investor loans as well?
     
  12. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Both.

    1.4% is very rare though - has to be a large amount of borrowings coupled with sub 80% LVR

    Even then - they might not grant it. It's all fun and games with the pricing dept.

    Cheers

    Jamie
     
  13. Marty McDonald

    Marty McDonald Mortgage broker

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    1.45% for $1 mil 69% LVR just now.
     
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  14. Michael_X

    Michael_X Mortgage Broker Business Member

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    I just got 1.45% on a $320,000 IP loan @ 80% (Interest Only). Total lend $850,000.

    This wasn't the case late last week, as I had put the same pricing request through and only got 1.36%. The competitor used was Suncorp.

    Cheers,
    Michael
     
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  15. Redom

    Redom Mortgage Broker Business Member

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    CBA pricing seems to change a little depending on the week you ask.

    As full disclosure, they have an upfront pricing system where you insert the details of loans/etc in and it shoots out a pricing discount to use.

    They'll also price existing loans, so its best to ask for a new discount on your existing lending when applying for new lending.

    They may or may not price existing lending (no new lending) - usually after its escalated up to their pricing team. They generally try and push back, but push come to shove, they generally provide a smaller concession to retain customer.

    Cheers,
    Redom
     
  16. Michael_X

    Michael_X Mortgage Broker Business Member

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    Spent the afternoon re-pricing all the recent CBA deals. From my trial and error:

    Above 80% LVR - max 1.3%
    80% LVR - new customer max 1.35%
    80% LVR - existing customer max 1.45%

    The smallest lend I managed to get 1.45% discount was on $450,000 total lend - IP & IO.

    Please note, the above is for deals with new lending only.

    Escalated a few too, so let's see what they come back with.

    Cheers,
    Michael
     
    Last edited: 20th Jan, 2016
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  17. Redom

    Redom Mortgage Broker Business Member

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    Haha thanks Michael. I believe it changes depending on the week you ask and the competition at the time.
     
  18. Danielt25

    Danielt25 Active Member

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    Location:
    Brisbane Qld
    I'm trying to use the BOQ Clear Path loan of 3.99% to push for further discount for the refinance ... admittedly CBA are waivering $49k of LMI which BOQ wouldn't
     
  19. Agent99

    Agent99 Well-Known Member

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    guess I need to make another call to cba and see what % I get on existing, havnt called for awhile.
    Usually call every 6 months and they are pretty good even though I get grilled from 3 different depts !!
     
  20. oracle

    oracle Well-Known Member

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    Canberra
    Hi Jamie,

    Assuming 1.4% off both PPOR and Investment loans. Does that mean the final interest rate is

    PPOR: 4.20% (5.60% - 1.4%)
    Investment: 4.47 % (5.87% - 1.4%)

    CBA Stardard Variable Rates - Here

    Cheers,
    Oracle.