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

Discussion in 'Loans & Mortgage Brokers' started by James Bond, 24th Feb, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. James Bond

    James Bond Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    209
    Location:
    Melbourne
    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.
     
    Lindsay_W likes this.
  2. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    8,562
    Location:
    Sydney
    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...
     
  3. Terry_w

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

    Joined:
    9th Jun, 2006
    Posts:
    30,804
    Location:
    Australia wide
    What have you got to lose? Other than interest perhaps
     
    Navjit and Lindsay_W like this.
  4. PandS

    PandS Well-Known Member

    Joined:
    14th Feb, 2017
    Posts:
    1,159
    Location:
    NSW
    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 :D
    be debt free under 2 years
     
    Navjit likes this.
  5. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,429
    Location:
    Sydney (Australia Wide)
    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.
     
  6. timetoact

    timetoact Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    420
    Location:
    Sydney
    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.
     
    Lindsay_W likes this.
  7. Tonibell

    Tonibell Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    965
    Location:
    Sydney
    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.
     
  8. JasonC

    JasonC Well-Known Member

    Joined:
    14th Mar, 2017
    Posts:
    227
    Location:
    Sydney
    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
     
    Archaon and Anne11 like this.
  9. samiam

    samiam Well-Known Member

    Joined:
    5th Sep, 2015
    Posts:
    1,285
    Location:
    on my way
    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
     
    Anne11 likes this.
  10. Brady

    Brady Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,133
    Location:
    Adelaide, SA
    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.
     
  11. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    2,445
    Location:
    QLD
    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.
     
    Anne11 and Terry_w like this.
  12. Brady

    Brady Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,133
    Location:
    Adelaide, SA
    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.
     
    samiam and Lindsay_W like this.
  13. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    2,445
    Location:
    QLD
    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.
     
    Anne11 likes this.
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    15th Aug, 2005
    Posts:
    7,515
    Location:
    Gold Coast
    Why not ?

    ta
    rolf
     
  15. James Bond

    James Bond Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    209
    Location:
    Melbourne
    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.
     
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    15th Aug, 2005
    Posts:
    7,515
    Location:
    Gold Coast
    cool

    then u do have options if CBA dont want to play to your standard

    ta
    rolf
     
  17. James Bond

    James Bond Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    209
    Location:
    Melbourne
    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.....
     
    Last edited: 25th Feb, 2020
  18. twobobsworth

    twobobsworth Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    723
    Location:
    Sydney, New South Wales
    I'm at 3.2% with less borrowings. NAB are offering 3.09% to new business though.
     
    Anne11 likes this.
  19. Morgs

    Morgs Well-Known Member Business Member

    Joined:
    7th Dec, 2017
    Posts:
    1,040
    Location:
    Sydney NSW
    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.
     
  20. ChrisP73

    ChrisP73 Well-Known Member

    Joined:
    5th Oct, 2018
    Posts:
    669
    Location:
    Brisbane
    @Brady was that IO?