I have an IO loan of $349000 with the NAB and have had for 4-5 years. I am not receiving a discounted interest rate ATM – how much of a discount could I get/should I be asking for?
I would think you should be able to screw them for 0.6-0.7% without too much drama.
If you are not a confident negotiator, try this –
Call up and ask for a payout figure, then their retentions team will call and try to give you a better deal. Tell them the competition is offering 'x', and you are very upset. (Prior to this, check out ratecity.com.au and see what the lowest rates are)Tell them you are out of there if they are not able to keep your loan in line with other offerings and they should help you out.
Have fun
Hard to believe that 0.5% discount is standard and the extra 0.2% requires credit approval.
Richard Taylor | Australia's leading private lender
Thanks for the info Tim and Richard. The Commonwealth Invt Wealth Pkg <$750k looks like a good product as it has an offset feature that the NAB product doesn't have.
If I were to break with the NAB, would I have to pay Stamp Duty on the Mortgage all over again?….as the name suggests, I am from QLD and have had the loan since about 2003.
Stamp duty has been abolished on most loans in many states, including QLD I think.
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
Hi GCQld
As Terry has mentioned Stamp Duty has been done away even in Qld.
Depending on your requirements you probably could still do better than the CBA Colonial Wealth Package.
Richard Taylor | Australia's leading private lender
If you have a standard varaible rate loan, of this size, you will get a 0.7% discount easily with the NAB,i f you are happy to pay a package fee – most lenders (all the major banks) will not give you a genuine discount without being part of a package, unless you opt for one of their 'base loans' – which is not a bad option either if you do not need all the other bells and whistles, such as fee free credit cards and accounts. NAB's is called Choice, ANZ, have breakree, CBA have 'wealth' etc etc . Have a sniff around on each banks website and you will see what I mean.
For a loan the size you have, on the assumption that you convert it to the package, and get the .7% discount, (which you will) it would be a waste of time and money refinancing elsewhere – just as it would switching to NAB if you were on a similar wick somewhere else.
All the best.
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