I am in the process of looking to refinance my mortgage and extend to add another house. I noticed that my lender has the mortgage I currently have on my PPOR advertised at 0.6% lower than the rate I am on. This is an indefinate change, not a promotional period offer.
I have asked them to match this rate (have not yet told them I’m looking to add another $250k of business via another property yet) however they have advised as my mortgage settled in 2003 my higher rate stands. This is a variable rate.
Can anyone provide advice on if this is allowable by banks. i consider it unfair practice.
They have frustrated me a lot with this and if they don’t come to the party I will spend money changing lenders (I’ve found a cheaper mortgage anyway) as I wouldn’t want to give them the satisfaction of overcharging me and getting another couple hundred thousand in business from me.
I find this particular instance in bad taste as it provides me no incentive to show any loyalty to them as they are treating potential new customers with more respect than their iexisting customers.
Hi Nats,
I went through this crap with my bank about 8 years ago.
I put it to them, that as a loyal customer of theirs for the previous 6 years, I found it unfair that loyalty was not being rewarded. Their response, more or less, was bad luck mate. I shopped around and found a better loan elsewhere. All of a sudden my bank came back and decided to match the offer, and put me on the ‘honeymoon’ rate at the time. I decided to stick with them, as it was alot more hassle to move than stay.
Anyway, 12 months later, the rate reverted back to normal, at which point I thought I’d try my luck again. Sure enough, they put me on the ‘honeymoon’ rate for a second time. 12 months later, and they came to the party a third time.
The 4th attempt was not as successful, and was put on the standard rate. Thats when I decided to shop around, and eventually moved on.
Basically, give it a go. If you threaten to go and they let you, then they weren’t serious about you anyway. Thats business, and it would be their loss. It would be your loss if you could get a better offer and did nothing about it.Let us know how you go.[party]
I suggest you write to your bank and ask for a payout figure for your loan as you will be refinancing. Tell them the reason, and see what they come back with.
Sometimes when you ring up, you just get the wrong person who doesn’t give a toss if you stay or go.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Jerzy, your example is what most brokers hate. They do a heap of work to get you a better deal elsewhere and you end up staying with the lender that has been ripping you off for years and the broker does not get paid.
If you tell the lender to provide you with the discounted rates or you will refinance out of there, they will match it. It is easier for them to do this prior to implementing their retention team. Of course, you would have to be a good client for them to budge (ie: never miss payments).
TMA
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First Home Buyer WebsiteFYI TMA, I did not go through a broker for this loan. I dealt with the local branch manager face to face.
Surely if you had read my post properly you would have noticed that I did not mention a broker being involved. Also, I did state that it was 8 years ago, and you would have to admit, being a broker yourself, that the finance industry was a very different animal back then. Chopping and changing loans at this time was a lot more difficult, therefore, my decision to shop around at this time was not taken lightly.
Overall, I managed to negotiate a better deal for myself at the time. Isn’t that what its all about ?
Jerzy, my comments were not directed at you. I was merely outlining a scenario that brokers get upset with. Don’t take it personally.
TMA
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First Home Buyer WebsiteTMA, I was only pointing out that you did not read my post correctly to make a valid reply. No broker was harmed or put out during the making of my loan application, so rest easy my friend.
Jerzy, your example is what most brokers hate. They do a heap of work to get you a better deal elsewhere and you end up staying with the lender that has been ripping you off for years and the broker does not get paid.
Jerzy, my comments were not directed at you. I was merely outlining a scenario that brokers get upset with. Don’t take it personally.
Moi, take it personally ? Never ! Though you yourself are getting pretty emotive above. I would like to ask you one question though; Do you get this stroppy about doing a heap of work for your clients, knowing that the property transaction may fall through, perhaps due to your clients being outbid at auction ?
Sure, its not an ideal situation, but I would have thought that, that was a risk that makes up the job of being a broker.Still, rest assured that I am not anti-broker. The experience that I initially outlined, only reinforced in me the need of a good loan broker.
I am more than pleased with the bloke whose services I employ now. And no, I have not stuffed him around – at least I dont think I have. Though I did get him to line up a loan for me recently for an auction that I was out bid at. I hope he didn’t get too stroppy.Jerzy, I read your post just fine and my response was adequate. It seems you missed my comment about my post not being directed at you. I am over it.
If you think my above post was emotive in any way, you do not know me very well. I like to think of many of my posts as blunt and to the point. It is also interesting you consider my comments as ‘stroppy’. Is this because you disagree with my comments so find the need for name calling?
Regarding your question, I never got ‘stroppy’ with clients. It only leads you to a situation of not receiving referral business which is very important to a broker.
TMA
http://www.email4money.info
Investor Links
First Home Buyer WebsiteJerzy
This forum is a great place to get advice and learn.
TMA has given me personally some excellent info and advice over the time I have been with this forum and I value his contributions to this forum.
Reading the post and reply there was nothing in it to get upset with, TMA was merely giving another opinion and he backed what you said re going back to your lender to negotiate before you move on.
TMA is just blunt but he is a nice guy.
Hope you will contine to write posts.
Take care
Jenny1
Excuse me TMA, but my initial comments were in reply to a situation experienced by NATS12 that I found familiar.
Jerzy, I read your post just fine and my response was adequate.
No, you did not read my first post accurately, because you somehow assumed that I stuffed around a broker, when there wasn’t one involved. Sorry for feeling the need to reply to that misconception, but it had to be cleared up.
It seems you missed my comment about my post not being directed at you. I am over it.
That was not part of your initial response.
If you think my above post was emotive in any way, you do not know me very well.
Well No, I dont know you very well as we have never met, but I have read alot of your posts here, and have found them to be quite informative, if yes, a bit blunt.
I like to think of many of my posts as blunt and to the point.
Nothing wrong with that, as long as you are right.
It is also interesting you consider my comments as ‘stroppy’. Is this because you disagree with my comments so find the need for name calling?
No TMA, your comments were really lighthearted and friendly, but seriously though, theres nothing wrong with being stroppy. I get that way quite often.
But I dont know what you mean by name calling though.Jenny, thanks for your comments. Although I havn’t posted many replies on this forum, I am an avid reader and have been for a couple of years. This will probably give him a big head, (hope he’s not reading this) but I quite like reading TMA’s post’s and often find myself agreeing with him whenever he has a vibrant discussion with some of the regular posters here.
TMA does make more sense here than most.I have to say and i hate myself for saying it but I totally as I often do agree with Robert.
A classic example is a current commercial deal I have been working for a few weeks with some clients whose Bank told them they do not do business loans secured against residential property.
The security was leasehold and after much painstaking i secured them a approval secured on both the residential home and the balance secured against the business. In fact the lender was short of security and was prepared to take the shortfall due to the cash flow.
Today i am told that they asked their current regional lender for a payout last week and when approached with the fact they they would loose the deal their existing Bank have now gone to 90% refinance on the basis of a few projections. As they couldnt do the deal legit they set the clients up with a line of credit and told them to use the funds for whatever purpose they desired.
I think a LOC for a business loan is a really inteligent idea of doing a deal – NOT.
What Robert is getting at is that a Broker hates to perform his duties and then and the end of the day loose out to the existing Bank who would rather than go back on their initial word than see the business go elsewhere.
Thankfully many of my clients attitude is now that they would rather let me refinance their application than stick with their current lender. The same lender who couldn’t give a toss about them when they were a client but the minute they think they might be an ex-client are all over them like a rash.
Where are all the retention department bank jonnies on the forum when you need them for a bagging.
Cheers Richard
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http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Thanks for the kind comments guys…
Jerzy< are you just bored?
Originally posted by Jerzy Balowski:Excuse me TMA, but my initial comments were in reply to a situation experienced by NATS12 that I found familiar.
I know. It was pretty clear in your post.
No, you did not read my first post accurately, because you somehow assumed that I stuffed around a broker, when there wasn’t one involved.Where did you get the impression that my comments applied to your example especially after my follow up post stating it was not directed at you but just a scenario brokers face every day? What do you need me to say for you to understand that your comments were not as important to me as you seem to think. I try to keep my postings as generic as possible whenever I can.
It seems you missed my comment about my post not being directed at you. I am over it.That was not part of your initial response.
That’s right. But it was the basis of my next post yet you are still going on about it.
But I dont know what you mean by name calling though.In my opinion, implying or describing someone as ‘stroppy’ is name calling.
Stroppy = belligerent, bad tempered, awkward to deal with, easily offended or annoyed
I don’t get like this online. They are just descriptive words on a screen to be interpreted in different ways by the readers.
TMA
http://www.email4money.info
Investor Links
First Home Buyer WebsiteDear oh dear TMA, you first ask :-
Jerzy, your example is what most brokers hate.
A reply that I felt needed clarification. You then ask:-
Where did you get the impression that my comments applied to your example
Which example are you referring to then? We must be talking about the same thing, as I have only stated one example.
What do you need me to say for you to understand that your comments were not as important to me as you seem to think.
Ummmmmmm, nothing ! Seriously, if my comments are unimportant, then why reply ?
Please dont take offence at my use of the word ‘stroppy’. I use this word in front of my children without a second thought. I certainly dont think that an adult would take offence to it. If I was into name calling though, I can assure you I could come up with something a lot more insulting, but thats not my style. In this type of format, I consider it cowardly.
Jerzy< are you just bored?
If I was, I’d have a lot more posts next to my name than I currently do.
Robert, I would like to re-iterate that I could not agree with you more about people who stuff others around. I know the type of person you are referring to as I have to deal with these types myself.
And yes, they also make me quite stroppy as well. [wink]Originally posted by Jerzy Balowski:Where did you get the impression that my comments applied to your example
Improper use of words…
example = personal situation
Sorry for the confusion.
I am also practising becoming more ‘Stroppy’!
TMA
http://www.email4money.info
Investor Links
First Home Buyer WebsiteNats,
If you tell your existing lender that you are increasing your lending you may then fit into a professional pack status which will normally give you a .7% discount of their standard variable rate.You are probably aware that professional Paks are not neccessarily for professionals.If you can’t get the rate you want save yourself the run around see a broker,we are good people.
Banks generally will not love you until you go.Kindest Regards,
Glen Barton
Mortgage & Finance Broker
Sunshine Coasti’m back – have been on holidays.
the lender came through with the discount finally. I didn’t want them to know I am planning on extending my lendings as I wanted them to give me the discount regardless of that.
i’ve started to look at some of the professional packages around. meeting with a few of the banks to consider what’s available. when we bought our first property a simple loan suited us but we have since increased our earnings which enables us to do a lot more.
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