Refinance Cancellation

Hi all,

A few months back, I got in contact with my lender CUA trying to reduce my rates from 4.75%. They more or less said they couldn't do anything better than that unless I wanted to go for a fixed rate option.

I wasn't happy with this, so applied for a refinance loan with UBank at 3.99%. I had submitted the application, and it was approved. The contract pack was sent to me and I forwarded the authority to discharge my CUA loan to UBank.

I recieved a call from CUA today, advising that they could lower my rates now....I guess they just wanted to be convinced that I was going to walk.
I haven't yet returned a signed contract to UBank, but I was thinking of staying with CUA if they could drop the rates and I would avoid the various fees.
Given the signed contract hasn't been returned, is there any issue with cancelling this loan from UBank?

 

No contract signed means you haven't accepted their offer so no contract exists.

 

No issue not completing it (may want to check if theres fees payable re val etc with Ubank), this is relatively standard, sometimes its easier just throwing in a discharge request and seeing if that motivates your existing bank (looks like it has).

 

No issues in cancelling but this is quite common.

The issue is that your first call most likely went to a generic call centre who dont have the ability to price on loans.

The discharge or retention team is a seperate team that does have this power so its always best to speak to this team when you need pricing.

Its cumbersome but how most lenders (and organisations) roll.

 

Good work @Frosty123 on taking this step and bringing bank down to their knees..

No issues whatsoever..

Cheers,

 

Always ask to be redirected to the mortgage retention call centre team. Speaking with anyone else tends to be a waste of time.

A neat trick you can pull when your bank runs a "new customer only" offer. Express your agitation politely and ask to get the 1000 points or $500 gift card or whatever. You may not get it, but there's other levers that can work like refunding a admin fees to match the gift card value, or rate reduction. No harm calling eh