Loans priced individually with same lender??

Discussion in 'Loans & Mortgage Brokers' started by smallbuyer, 14th Oct, 2019.

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  1. smallbuyer

    smallbuyer Well-Known Member

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    WA
    So had an interesting chat with NAB the other day. They seemed to indicate they offered discount on individual loan size not the total of all loans with them. ie if you have several loans under $250k you get to pay a higher rate even if total borrows is 500k+. They did helpfully offer to merge the loans to get a higher discount (cross no thanks). They also offered the current new loan rate if you do a top up (I presume a full loan app, vals etc). Do many lenders count individual loans not the total borrowings when assessing rates?

    Also what sort of INV P&I rates are people getting from NAB at the moment?

    Cheers
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    They price my deals based on aggregate borrowings.

    They don't need to "merge" your loans to get you a rate discount.......sounds like the person you spoke with might have wanted to write a new loan.

    Cheers

    Jamie
     
    Last edited: 14th Oct, 2019
    Lindsay_W and Terry_w like this.
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    The NAB's pricing system has the facility to include all loans, even those you're not asking for pricing on. The do price on aggregate borrowings.
     
  4. smallbuyer

    smallbuyer Well-Known Member

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    Thanks for your replies. I thought it sounded like they where playing games or didnt know what they were on about. On another note i heard someone was talking to Firstmac and were advised they cant reduce the rate without a new loan application. Apparently they said the money for the old loan was paying a higher interest rate for the money they would use for the new loan. Both are variable loans and i would think if the old loan was paid out early and a new loan taken wold make no difference??
     
  5. Redom

    Redom Mortgage Broker Business Member

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    Some lenders do make pricing existing loans harder than others - rewriting a loan completely for price does seem a bit extreme though. We haven't had too much luck re-pricing Firstmac loans though and their front book pricing is pretty sharp at the moment (back book unlikely to match this).
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I smell a NAB attempt at cross coll :)

    ta

    rolf