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CBA SVR Discount

Discussion in 'Property Finance' started by J&E, 10th Jan, 2017.

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  1. J&E

    J&E Member

    Joined:
    15th Dec, 2016
    Posts:
    24
    Location:
    Sydney
    Hi all,

    I currently have approximately 2.5 million in loans, LVR 80% with CBA.

    I a couple of extra properties to be added by Feb which will bring up the loans to 3.5 million with the LVR still just under 80%.

    I am currently on 1.4% SVR discount. Can anyone advise if there are any avenues I can take to seek a greater discount, even an extra 0.05% would help. I heard you can use the opportunity to ask for extra discount if I bring new business in. Anyone able to advise?
     
  2. Redwood

    Redwood Well-Known Member Business Member

    Joined:
    22nd Jun, 2015
    Posts:
    450
    Location:
    Melbourne
    J&E - if you are using a broker, submit a pricing request and let the broker assist with the BDM involved. Submit a competitor quote. I will say for a recent $3+m loan CBA will not competitive at all for new business (was a existing NAB customer).

    If you are using a business banker - tell them you saw a broker and have a rate of xxx and if they don't match it you will leave. In summary, I don't believe CBA is the most competitive for inv loans, so be free to diversify with another lender....try AMP...

    Cheers Ivan
     
  3. Pamela Palmqvist

    Pamela Palmqvist Active Member

    Joined:
    6th Jan, 2016
    Posts:
    27
    Location:
    Fremantle
    Happy to help you with a pricing request although 1.40% off is generous for CBA at the moment.
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,886
    Location:
    Canberra, Brisbane and Sunshine Coast
    CBA's deep discounting days seem to be over for now :-(

    You've got a decent discount in place - no harm in trying for more but I don't know if they would.

    Wasn't long ago when they were throwing 1.5% discounts around. Those were good times :)

    Cheers

    Jamie
     
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  5. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    4,021
    Location:
    Perth WA
    I'd be more concerned by the fact you've got so much lending with CBA - and if you're going direct to branch, I'd be super concerned about the structure you've got.

    The odds are very high they've cross-secured all your loans to all your properties - this is very high risk and could be difficult to fix if servicing is getting tight.

    Ideally, I'd get this looked at by an investment savvy broker before you settle the next two properties. The rate is a non-issue compared to the potential nightmare structure you could have.
     
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,920
    Location:
    Gold Coast
    Im with Jess, even just on the basis of general concentration risk.

    if 3.5 is a portion of your overall lending then no big deal, if its all or most of your lending, the potential price of the convenience of having it all in one place can become problematic.

    Im assuming there is probably a great reason like 90 % no LMI, even there though Id certainly usually recommend a mix for my clients

    ta
    rolf
     
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