Renegotiate Variable Rate Discount When Fixed Rate Expires

Discussion in 'Loans & Mortgage Brokers' started by Mark, 18th Dec, 2016.

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  1. Mark

    Mark Well-Known Member

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    The variable interest rate of my current loan with Adelaide bank is 4.09. The current advertised variable smart saver rate is 4.49. If I choose to fix it for three years, is it hard to renegotiate with the bank on variable rate to get same discount when the fixed term expires? I am not planning to refinance the loan within the next 3 years. Can anyone share their past experience on this？
     
    Mark, 18th Dec, 2016
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    ABL doesnt have discounts off rack rates like many banks do

    They have a packaged product, with a specific rate

    My experience tells me that that you will go to the rate of the packaged variable product ofthe day when the Fixed expires

    ta

    rolf
     
    Rolf Latham, 18th Dec, 2016
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  3. Hasan

    Hasan Member

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    Hi Mark,

    What rate will you be receiving for a 3year fixed? I also have an investment loan with ABL.

    Thanks
     
    Hasan, 18th Dec, 2016
    #3
  4. Mark

    Mark Well-Known Member

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    Thanks, Rolf.
     
    Mark, 19th Dec, 2016
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  5. Mark

    Mark Well-Known Member

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    Hasan, I called Adelaide Bank 10 days ago and it was 4.09. They hold the rate for me for 2 weeks. It has gone up to 4.35 this week.
     
    Mark, 19th Dec, 2016
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  6. Hasan

    Hasan Member

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    Thanks Mark
     
    Hasan, 20th Dec, 2016
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