Would I be realistic in asking CBA for a rate reduction?

Hi, I have $320,000 in Investment loans and $970,000 in my PPOR loan, all P&I, all variable, all with offsets. I am currently being charged 3.88% for Investment and 3.3% for PPOR.

Would I be realistic in asking CBA for a rate reduction, or are these good rates in the market at the moment? I don't want to move from CBA (although they don't need to know that).

Thanks for any advice.

 

Yes...they are too high.

The investment rate should be around 3.05% and the investment around 3.65%.

CBA like screwing people over..so be prepared to move...if they say no...

 

What have you got to lose? Other than interest perhaps

 

I am 3.45% with CBA PPOR but I couldn't bothered , I mostly paid principle as I got offset = loan or if I go shopping in the stock market it temporary go into down 100K or so and it get filled back up again pretty quick.

Last month mortgage interest was $39, Maybe I save 50c or $1 if I move bank
be debt free under 2 years

 

If you dont ask, your unlikely to get a rate reduction, so may be worth it. CBA aren't the best in this space re back book discounting.

 

Always ask.
ING have dropped their rate multiple times after I asked.
From memory when I used to be with CBA they did once or twice too.

 

Assume you are on the Wealth Package - if not, you should be.

The standard for 1 - 5 year fixed on that is 3.19% (P&I investment). Be worth taking that for 1 year if you can't get better.

 

I managed a rate reduction with CBA a few years ago by simply ringing and asking them to send me the discharge forms. They asked why I was closing the loans and I said cause I can get a better rate (X.xxx) elsewhere. They key was knowing what rate I could realistically get elsewhere (thanks Property Chat brokers!).

They then proactively chased me to give me a better rate. I wasn’t in a position to move at the time.

Regards,

Jason

 

I recently fixed my PPOR loan with CBA 2.89% P&I for 2 years
I did threaten to move one of my IPs from Westpac and they give me 3.04% P&I for 2 years
Unfortunately I have fixed some IPs at 4.19% with CBA last year so I guess they are still getting my blood

 

If you loan hasn't been repriced / renegotiated / settled within the last 12 months then definitely worthwhile asking the question.
Be armed with some actual offers from other banks, get have them in writing.
Best to compare with major / comparable banks, not online lenders.

 

This is what most have to do for CBA to take the request seriously, they are terrible at giving existing clients discounts UNTIL they send in a discharge form or apply for additional lending, they know most are bluffing or simply to much effort to refinance to another lender.

 

1.85% INV and 1.70% OO achieved today for existing customer TLB >$1M <70% LVR, no new lending, no discharge request sent.
Each request is different.

 

Anyone with more than $1 M in lending and LVR less than 70% SHOULD be looked after, they shouldn't have to ask/beg for it.I would still argue still not as competitive as other options in the market even though the client avoids having to refinance.
One pricing request allowed per year is ridiculous too.

 

Why don't I want to move from CBA or why don't I want them to know that?

I'd prefer not to move as I think they are one of the few (maybe the only?) that offers multiple offsets to each loan. Plus I like their web interface. That's all.

 

OK - I asked the question and got down to 3.2% and 3.6% respectively, saving a grand total of $1866 per year. So that's probably not as much as I could have got by moving, but it's better.

However on their website investment loans are at 3.52% so I'm just asking the question.....

 

I'm at 3.2% with less borrowings. NAB are offering 3.09% to new business though.

 

Good result; seems consistent with what I see for a retention rate without them receiving a signed discharge form and OFI request for settlement.

That 3.52% INV is the Extra product sans offset account.... cheaper rates within fixed too.

 

@Brady was that IO?