Hi?
Have purchased a house to live in with first hme grant and need to borrow 95 percent. Can anyone let me know how to get a better rate from the bank. We have been customers of national and won’t ever go there again. So it is out of the Anz , CBA or st George, we don’t want to go near a small bank or lender we dont know.
Commbank have approved us at 97% and offered 6.66 with no fees but won’t budge on the rate. Is this good or should we push them for a better rate. I’ve read people getting 6.4 and under???Have you thought about using a mortgage broker as an option ?
Yes and no. Ive been reading a lot and reading broker forums. they are all complaining that the banks undercut them when you go direct. I want to know how I can get a discounted rate because I am not using a broker?
97% at 6.6 with no fees…. that sounds pretty good to me as it is… but maybe i’m not fussy.
Hi Vic
Never had a Bank undercut me in 22 years usually the other way around.
A good MB can structure your loan correctly to make sure it is set up right for you wheareas a Bank manager / loans officer has no interest in doing this and in most cases no idea either.
An example was a client today who was told by his CBA branch manager that he had a 100% offset account and that he should deposit all of his income into this account and then redraw it when necessary. Unfortunately it turns out that after making $96,000 deposit into the account over the last few years he has decided to withdrawn only for us to advise that he has now contaminated the interest deductibility and he cannot claim this as a deduction.
Of course had he had a proper 100% offset account set up he would have been laughing.
To save 0.1% initially and now find it will cost forever and a day is an expensive error.
If you have been offered that on a 95% lvr i would complain as Yes you could find a cheaper rate but at what overall and long term cost. Just bear in mind the MISA account CBA trot out as there offset account is not fully transactional.
If the loan is interest only i wouldnt go with SGB either and consider NAB at 6.54% or Anz.
Both have a fully transactional offset account. Anz will also require you have existing relationship with them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:An example was a client today who was told by his CBA branch manager that he had a 100% offset account and that he should deposit all of his income into this account and then redraw it when necessary. Unfortunately it turns out that after making $96,000 deposit into the account over the last few years he has decided to withdrawn only for us to advise that he has now contaminated the interest deductibility and he cannot claim this as a deduction.
ouch… pays to check everything
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