CBA wealth package

Hello

I currently have the CBA wealth package ($395 per year) and the renewal is next month.

I'm thinking about cancelling it.

When I first got my home loan for an IP a couple of years ago, it was useful as it gave me a significant discount to my loan which was on a variable rate plus offset account. I do use the credit card.

However, I fixed my rate for 3 years at the end of last year. So I'm not seeing any benefit of having the wealth package. I'm happy to cancel my credit card.

When I was on a variable rate, I got a significant discount on the rate. So my thoughts are should my fixed term end in 2.5 years, I may lose that significant discount if it reverts back to variable.

However, I'm thinking I can just rejoin the wealth package at that time. This way I can save about 2 lots of $395 across the two years.

Thoughts? Just wanted to check if I have overlooked something.

Thanks

 

Your fixed rate is probably under the wealth package product then?
You will lose the discount you have when it reverts back to variable.
Depending on the current discount approved you may or may not qualify for the same discount in the future.

 

Good point, I hadn't considered that. Thanks

 

Yes you are right. Checked with CBA.

Anyone have any success in getting their wealth package waived?

A little annoyed to have to pay to receive a discount.

 

I’ve been on cba wealth pack most my investor career. One tip: I use my free CC to pay for everything and get back well over the annual fee $400 in gift vouchers from cba awards points, I choose Coles and Kmart. So it’s free.

 

For one year I have - but not for the life of the loan. CBA staff might be able to get those sort of benefits.

Cheers

Jamie

 

How were you able to get the fee for one year waived?

 

It was also waived for me in the previous FY, not sure why, but I suspect a Covid related thing. I was surprised at the time, but it has recently been reinstated.

 

Back in the day some brokers could get the first year waived for their clients.

Cheers

Jamie

 

Suncorp has waived it for the life of my loan. Fantastic that is. Also with St George, they are horrible, can't wait to move out of them

 

Brokers can request the fee waiver via the CBA pricing tool

 

The packages used to be the premier product across all 4 major banks. You'd pay the fee, but the discounts made it qutie worthwhile.

The last few years they've all changed their focus to basic products which are now more competitive and don't generally have ongoing fees. The catch is they don't have an offset account and the majors generally don't reprice these loans once they are set up. They will reprice the package loans. Unfortuantely this can lead to a fairly expensive loan within a year or two.

These days the real competition is with the second tier lenders. Macquarie, Adelaide, etc. The loans are fairly straight forward. You'll pay a fee for the offset account but it's nowhere near $395 you pay with the majors. I've found them to be better on renegotiating rates later on as well.

ANZ has recently started to emulate the second tier lenders by simplifying their products. That roll out is currently in progress. It wouldn't surprise me if the other big banks follow suit over the next year or two.

These days my preferred lenders are not the big 4. The second tier banks are consistantly more competitive both at intial application and over the long term. Their service is usually also much better. The big 4 still have some policy niches which is useful. They are aware that they're not competitive in the market but sadly they seem to be relying on existing market share, appathy and cashback, rather than being truely competitive.

 

I've noticed this roll out - it's getting advertised well, if it's anything like existing 'basic' products offered by most banks, long term it's not best option.
Haven't seen many that aren't bait and switch loans...

Rates Standard Variable type loans with packages typically move inline with RBA to a degree...
Whereas the basic many times don't always follow.

Do you think ANZ is doing this for the customer or their bottom line?
Personally I hate all the basic type products, as they often become less competitive and lack repricing function.

 

@Brady I agree with you. However as I stated, the basic products are the ones the majors are pricing competitively at the moment, the package discounts are at least 0.5% higher that the second tier lenders and even the majors basic products in most cases.

As you say, lenders aren't repricing the basic products so I agree they are a bit of a bait & switch option.

All ANZ appears to have done is remove the annual fee and charge an optional monthly fee if you want an offset account. ANZ's pricing tool still works. They also still offer their Simplicity Plus basic product.