Join Australia's most dynamic and respected property investment community

How to negotiate current PPOR/Package discount with WBC

Discussion in 'Property Finance' started by daver, 30th Aug, 2015.

  1. daver

    daver New Member

    Joined:
    30th Aug, 2015
    Posts:
    4
    Location:
    Melbourne
    Hi all,

    I need some advice on how to best approach my current loan rates with WBC. I currently have a WBC Package with below existing loans both at approx 80% LVR. Would prefer not to move atm.

    PPOR - 747K at 1% discount
    IP - 279K (IO) at .92% discount

    From reading other threads it appears that now may be a very good time to ask for a lower rate on my PPOR, and a discount of 1.3% should be realistic at WBC?

    I am supposed to be meeting the new relationship manager in a few weeks. Is he the right person to be discussing this with? How should I best approach this request and should I be asking for 1.3% off the entire package or just the PPOR loan?

    Thanks
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,097
    Location:
    Melbourne, Nationwide
    You either get your broker or relationship manager to organise it.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,970
    Location:
    Sydney
    Since you are already with them this is probably not realistic. There are higher discounts to entice new customers over and discounts should ideally be applied for upfront or when increasing the loan.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,761
    Location:
    Perth WA
    With WBC, if you want a discount off the whole lot they'll want you to x-coll your loans - if you don't want to (and you definitely shouldn't) you'll have to have a lot of luck on your side. I have heard of it happening though.
     
  5. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,578
    Location:
    Adelaide, SA
    I have a discount with wbc and aren't cross coll, perhaps @Corey Batt knows the right people to speak to?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,970
    Location:
    Sydney
    I've never crossed a loan with WBC and had no prompting to do so, yet still get good discounts for clients.
     
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,761
    Location:
    Perth WA
    It's a recent thing - only since all the changes but it might be just for new lending. I haven't experienced it one way or the other since it came in, just what my BDM keeps telling me.
     
    Last edited: 31st Aug, 2015
  8. daver

    daver New Member

    Joined:
    30th Aug, 2015
    Posts:
    4
    Location:
    Melbourne
    So does that mean that the current 1.3% discounts are ONLY available for new customer PPOR loans and they will most likely be unwilling to match any offers from elsewhere for existing loans?
     
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,970
    Location:
    Sydney
    Yes. unless you are increasing borrowings.
     
  10. daver

    daver New Member

    Joined:
    30th Aug, 2015
    Posts:
    4
    Location:
    Melbourne
    Ok thank you very much for the info