Refinance with new bank for lower rate ?

Is it a good idea to refinance with a new bank for a lower rate ?
Im currently with cba paying 3.8% on a investment IO offset acc. I was told by a mortgage broker that he can get me lower rates with other banks.
Im wondering why my mortgage broker didnt ?
Is there any cons in moving ?

 

That is quite high. You should even be able to reprice it with CBA directly, or your broker can do this for you. We have an annual review process where we do this for all our clients for them.

On the cons; there are some costs associated with moving lenders e.g. CBA discharge fee $350, govt fees, potential new lender app fees, but equally plenty of lenders offering cash back rebates. Plus of course you'd need to pull together all the documentation/paperwork to complete the application, and change over all your direct debits etc once you move banks... but pretty simple admin.

 

What do you think i should get with cba ?

 

Depends on your customer profile, LVR%, loan size, etc but presumably low 3%s.

They're not going to be cheapest in the market but should be able to do better than current.

 

Hey no i put down 20%

 

My IOs with CBA are 3.51%

 

If youre at 80%, regardless if you have a PPPR or not you can get a good mix of fixed and variable where the fixed portion could save you around 1.2% on IO rates.

 

Did you call them up your self ?

 

Nope trusted broker working with me ;-)

 

'We have an annual review process where we do this for all our clients for them.'
That's something I would be interested in, I wonder if any other brokers do this?

 

So i can fix half of the loan and keep the rest variable?

 

You can mix a portion that best suits you.

 

Hi All,

We had a really good weekend and one of our offers got accepted.

Only commbank has been able to offer us 94.99 (no LMI medico) loan. We had assistance from a mortgage broker for other products 89.99 LVR, but it was a lending specialist from commbank who helped us get 94.99 pc pre-approved - so we feel committed to go direct.

We are first home buyers - and beginners in mortgage negotiation. So looking for some mortgage negotiation advise as we are directly negotiating with CommBank on the product offerings (and are blind about other deals - the perils of going direct !!)

Loan amount required: 1,250,000
LVR: 94.99
Type: 80% Fixed, 20% Variable.
Offset Account: Required
Type: P&I
First Home Buyers

Can expert mortgage brokers help us with some advise please ?

1. What is a practical industry standard fixed and variable interest rate that we could negotiate for? We wanted to get an idea of what can be considered a win for us.
   
2. What are the competitors offering (Westpac, ANZ, and NAB). We are aware that westpac recently reduced variable entry level rates to 1.99.
3. What are the other package products which we could negotiate for ? (Offset account, 0 package fees etc.) The specialist said that he could waive our fees for the first year, but not beyond that, and also include a no-annual fee credit card.
4. What do we stand to lose by going direct ?

Thanks a lot folks.

 

I thought you are dealing with the bank direct? Not nice to get info from the broker and then bypass them to go to the bank direct.

1. You are lucky to be going 95% with no LMI which is a huge saving so you can't expect much in the form of a discount. perhaps 1% discount

2. No competitors with this LVR really.

3. Not much. perhaps first year annual fee waived, but they are easier to discount rates than fees.

4. Independent advice, strategies, other lender policies.

You are potentially better off with CBA depending on your deposit level.

 

Brokers now have access to this product at CBA, you don’t HAVE to go direct, if you are committed to going direct then I suggest you ask your banker about rates, fees etc.
Given that your asking for 95% LVR there’s a bit of a trade off, ie.don’t expect the very best rates and other offerings on the market as those are typically available to lower LVR’s