Lenders often offer off-the-shelf interest rate discounts for borrowers of larger amounts. For example, the Commonwealth Bank offers their Wealth Package with different tiers of discounts, maxing-out at 0.7% discount for borrowing $500,000 or more.
I really don’t believe that this is the real maximum discount though. I would like to know what kind of volume discounts individuals are currently achieving, for balances over $1 million, $5 million, $10 million etc., from the Big Four banks.
Can anyone here comment from their own direct experience? Thanks
Andy
The best I have acheived was 1.1% off for a loan of about $1.5mil – but this was a few years ago now.
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 Andy,
Unfortunately CBA has gone backwards with their discount margin in the last 1-2 months; due to their so call “funding cost”
http://www.facebook.com/notes/shape-home-loans/cba-cut-back-on-discounts-for-new-lending/331426753534241Having said that- another banks are still offering massive discounts- up to 1% discount as standard; and more for higher borrowing.
http://www.shapehomeloans.com.au/blog/january-2012-interest-rates-2012010372Anything over $2 m with LVR under 75% with location 1 or 2 security – a discount of 1.05-1.15% is possible depending on the bank.
If your a doctor, practicing CPA ( over 5 years) , executive ( medium-large company) or a trading client ( self employed over 7 years) then expect the discount to be even higher!Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
We've just been approved for a 0.9% discount with Westpac on a loan of over $800000 but the broker is hitting them up for 1% because the LVR is only at 42% – Worth a shot.
rusty05 wrote:We've just been approved for a 0.9% discount with Westpac on a loan of over $800000 but the broker is hitting them up for 1% because the LVR is only at 42% – Worth a shot.The big red is one of the hardest lender to neg on discounts + they have the highest SVR…i guess you pay a prem to be the first bank of Aus.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Shape,
Funnily enough it was the one bank I initally refused to go to because of a previous customer service issue … but given the complexity of our purchase (primary production on a residential loan, etc) they were the best this time round for us, the 0.9% brought us down to not much less that where we hoped to be originally.I agree 1% is an ask but we'll see
rusty05 wrote:We've just been approved for a 0.9% discount with Westpac on a loan of over $800000 but the broker is hitting them up for 1% because the LVR is only at 42% – Worth a shot.on $800K you should be getting 1%. I'm getting 1% on less than $800K with both Comm and St George.
I'll keep you posted!
Hi Andy28
we are getting 1% on loans totally just under $600k so you should definitely get more than 0.9%
I would renegotiate if you can. if not right away once your loans are settled and you have proven your credit worth.
good luck!
rusty05 wrote:Shape,
Funnily enough it was the one bank I initally refused to go to because of a previous customer service issue … but given the complexity of our purchase (primary production on a residential loan, etc) they were the best this time round for us, the 0.9% brought us down to not much less that where we hoped to be originally.I agree 1% is an ask but we'll see
Well if that is the case, i would be happy with 0.90%
Yes 1% + is possible…but as you said given your unique security ( primary production); it wont be easy to switch lender on a residential rate.
Keep us posted.Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Also what you have to bear in mind that 1% off the SVR with Wesuck is actually higher than 1% off the SVR with the other majors as their benchmark rate is higher.
I would be wanting 1.06% discount..
In saying all of this it depends on the loan and lvr.
At 250K and lvr of say 75% or less you should be getting circa 1.2 – 1.25% discount.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
rusty05 wrote:We've just been approved for a 0.9% discount with Westpac on a loan of over $800000 but the broker is hitting them up for 1% because the LVR is only at 42% – Worth a shot.12 months ago my broker put my loan out for tender , Got 2.0 discount on a westpac commercial loan 0f 600000 wit h 50% LVR but the fees are high so need to be 75% drawn to be worthwhile. Yet another broker told me I couldnt qualify for a loan. CBA didnt offer a quote.
Qlds007 wrote:I would be wanting 1.06% discount..We organised this for a client recently on total borrowings of $750k + with a low LVR.
That said though – WBC can be difficult to negotiate with.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Really a Bank being difficult now thats a first at the moment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Here is an article about interest rate discounts, although it’s from the US: http://bottomline.msnbc.msn.com/_news/2012/07/20/12837562-zuckerberg-is-not-the-only-one-who-can-get-super-low-mortgage-rates
A few months ago we were able to get 1.1% or more from westpac for loans above 1 million but in the last week the best we have been able to get is 1.07% discount
andy28 wrote:Lenders often offer off-the-shelf interest rate discounts for borrowers of larger amounts. For example, the Commonwealth Bank offers their Wealth Package with different tiers of discounts, maxing-out at 0.7% discount for borrowing $500,000 or more.I really don’t believe that this is the real maximum discount though. I would like to know what kind of volume discounts individuals are currently achieving, for balances over $1 million, $5 million, $10 million etc., from the Big Four banks.
Can anyone here comment from their own direct experience? Thanks
Andy
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