Retaining existing discounts on new lending

Discussion in 'Loans & Mortgage Brokers' started by Hockey Monkey, 1st Dec, 2016.

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  1. Hockey Monkey

    Hockey Monkey Well-Known Member

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    I'm currently on a 1.55% discount with BoM.

    In the past when taking out additional loans with the same lender, I've always received at least the same rate.

    This time around I'm being told the best rate discount I can get for a new loan is 1.3%. Is this typical currently?
     
    Hockey Monkey, 1st Dec, 2016
    #1
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Yes, normal. They're not as generous with pricing as they were a few months ago.
     
    Jess Peletier, 1st Dec, 2016
    #2
  3. Corey Batt

    Corey Batt Well-Known Member

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    That's correct, that's happening across the board. Lenders were having a significant price war months ago trying to secure business. Since then the lenders have become laden with new business and funding sources increasing in cost, they no longer have the will or need to compete at this level.

    For example earlier this year we were getting pricing on 250k 90% LVR CBA investment loans discounted by 1.5% all day long, now we're lucky to get 1.2%+ on a 1mil 80% LVR loan.
     
    Corey Batt, 1st Dec, 2016
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes happening to existing clients with CBA and Westpac too.
     
    Terry_w, 1st Dec, 2016
    #4
  5. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    You must have a fair bit of lending with them, I haven't seen a 1.3% from BoM in about a month!
     
    Simon Moore, 1st Dec, 2016
    #5
  6. Hockey Monkey

    Hockey Monkey Well-Known Member

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    Yes we have a fair bit of lending at 2M+

    Really annoying thing is that we had pricing approval at 1.55% when we were supposed to settle in June, but the OTP apartment was significantly delayed and the pricing expired.
     
    Hockey Monkey, 1st Dec, 2016
    #6
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if thats your sole lending, perhaps consider the concentration risk vs the benefit provided

    ta

    rolf
     
    Rolf Latham, 1st Dec, 2016
    #7
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  8. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    Wait a few months and the prices will get better, it's because of spring, everyone is busy.
     
    Simon Moore, 1st Dec, 2016
    #8
  9. Ethan Timor

    Ethan Timor Well-Known Member

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    :eek::eek: Fortune teller in the house! :eek::eek:

    ;)
     
    Ethan Timor, 2nd Dec, 2016
    #9
  10. Hockey Monkey

    Hockey Monkey Well-Known Member

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    I may take that advice in the future, but for now I need to proceed with only 14 days until settlement
     
    Hockey Monkey, 2nd Dec, 2016
    #10
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