Rate cuts passed on by different lenders

I think they are still doing well. I like them as they are so damn predictable with their policies and procedures.

But yeah, they should have gone the full cut!

 

Their pricing has picked up in recent weeks - have gone from 1.30 to 1.45% discounts on investment loans of decent sizes again. Not the best, but closer to their competition.

 

I had to get state manager sign off on a 1.3% discount for $2 mill + lending.

WA = wait a while haha!

 

The problem with ANZ remains that their investment portfolio servicing is putting them well outside the average investors ability to qualify. Rate cuts and pricing do nothing at all to change this.

There's actually a lot of things I like about ANZ, but it's a bit pointless if you can't qualify anything with them either today or in the future.

 

Yep, there servicing calc is harsh but this was for a high income earner, 1 mill+ / annum 90% no LMI under medico, large cash out, so suited there strategy nicely.

 

Have to say these reductions are woeful - NAB at 0.10%!

I'm going to be on the phone with a few banks tomorrow asking (begging) for a better deal. For example, I'm paying 4.57% with ANZ at present with a $880K loan. That's def too much. I reckon I should be close to 4% after this reduction.

 

Dont beg just say "I have been speaking to a broker and they said I can refinance to xyz bank and the rate is xxx and I am moving unless you can match it!"

 

I did this with them once Colin. They called my bluff. Is 4.57 % variable with the Breakfree pkg a crap rate (for ANZ)?

 

Tell them CBA is offering 1.5% off the SVR for investment- this is equivalent to 3.99% for an IP post rate cut. If it's a PPOR, you'd be looking at 3.86% - you'd probably only get 1.4% off the OO at the moment.

 

Be armed with factual info as per @Jess Peletier tips above OR get a Broker to go into bat for you.

4.57% - is that for IP or OO and what is the LVR and borrowings as this all plays a part in pricing decisions.

 

I'll try it tomorrow Jess tx. Pity I'm not in a position to actually switch tx to APRA.

 

ANZ wont know that ^^^^^ unless they run the numbers which I doubt it if you are asking for a discount.

Fixed rates may be worth exploring or a combo of fixed and variable depending on short, medium and long term goals?

 

NAB's fixed rates were fairly attractive - might take them up on that given its obvious banks are going to hold on to to any further reductions in the cash rate. But that's for my NAB loans. I'll see what ANZ say tomorrow.

 

Last time, I lodged a discharge of mortgage application

 

Hurrah!
Better than a poke in the eye...

 

In general, it seems to be just enough of a cut to make break costs awkward.

 

This is the problem i had with ANZ moving forward.Ended up refi to Liberty.

 

This is a solution that can create as many problems as it solves. If using Liberty for servicing, I would recommend having a plan to deleverage or if Liberty decide to hike rates to 10% or similar you have nowhere to turn. It also means your hopes of extending IO terms are limited. It's fine as long as you do it in the context of a full portfolio review and careful planning.

 

Yes!!! and we are in the process now of selling 3-4.

 

I have a couple with Liberty, Jess. In recent history (and currently), they're behaving like a Bank. Do you think its a real risk that Liberty will go back to their old ways with ridiculously high interest rates compared to their competitors. They def weren't my first choice but with APRA changes became a lender of last resort. So far so good but am concerned by your comments.