Westpac 4.99% Fixed Rate is Back

Joe – for you, I'd do it for nothing

But they'll probably want to speak directly with the account holder.

Use the "broker" as leverage. Tell them that "your broker" is putting together a refinance application with whichever lender at a rate of xx% and you'd like to give them the opportunity to match before you go ahead and refinance.

Cheers

Jamie

I’ll wait a week and call them myself. Hopefully I won’t get another douche bag!

That's good then!

The usual process with CBA is that you tell them that you're looking to refinance but would like to give them the opportunity to match. They will then tell you that your request has been put to a customer service (or retention team – whatever they call themselves) who will then give you a buzz in two to three days to discuss.

Just sounds like you got a dud person on the phone today.

Cheers

Jamie

UPDATE!!

I was at work today minding my own business when CBA phoned me. I missed their call on my mobile so they called my landline, when i didn't answer that they sent me an email and a text. I was waiting for them to try smoke signals next!

Any how i called them back and they told me i was a great customer and they don't want me to leave blah blah blah. They offered me 5.19% fixed for 1 year. I told them that i may as well go with westpac as there rate is 4.99%. Her reply was yeah but westpac are low because they have a bad reputation and trying to win customers back, she also said refinancing and doing all the paperwork is a hassle and i wouldn't want that, and also their website is too hard to use.

I ask her i am happy to stay with CBA if they leave everything as is and just reduce my rate from 5.50% to 5.19%. She said no as 5.50% is the best they can do for variable.

To end a long story she is calling me back Tuesday as i said i needed to speak to my broker first. I really don't want to fix any of my loans but hoping they can just reduce my rate.

Any idea on what i should tell her on Tuesday?

Well done Joe!

Sounds like the person you spoke to actually ended up forwarding your message onto the retention team.

You're probably not going to do much better on the variable rate based on your current borrowings – you're doing ok there on the 5.5% for $500k in aggregate borrowings. You could prob get 5.4%

If you're wanting to fix your loans, then stick with your guns and tell them that you want the 4.99% for two years. If they don't do it – you have two options. Refi to WBC or stay with CBA at the higher fixed rate but avoid the costs of refinancing.  With refinancing, there will be a discharge fee from CBA for each loan,  state govt. fees (normally around $200) for each loan and you'll be up for a $395 package fee with WBC.

Another important thing to consider is that you've got a decent discount off the SVR with CBA. When the WBC fixed rate expires, you'll go back to a higher variable loan with WBC then you'd have with CBA.

p.s that 5.19% for one year is their normal rate, they're not offering anything special there. The 2 year fixed rates with CBA is 5.29% just in case you were wondering.

p.p.s – I really need to get a life. Posting about interest rates on a Friday night…..what's wrong with me.

Cheers

Jamie

CBA have followed – 4.99% for two years effective from 12/02/2013

Cheers

Jamie

The discounts on their SVR is quite poor – and they haven't been very competitive in that space for a while.

Anyways, 4.99% seems to be a bit of a bench mark now – let's see how many others follow.

Cheers

Jamie