The biggest deal, 0.5% mortgage discount from big four

LTaekKucing on 07/06/2017 - 00:19

Moved to Forum: Original Link

Below is the script from Barefoot Investor the great Scott Pape.
I encourage everyone to read his book.
it's time to rip off big four.

Here’s my “$22,064 Phone Call Script” from my book:

You: Hello, my account number is ______. I’ve been with you for ___ years, but I’ve applied to refinance with UBank. Their rate is ____ per cent, which is a full ___ per cent cheaper than you’re charging me. Given our longstanding relationship, I’d like you to match the offer—or send me the forms I need to switch to UBank.

Bank rep: One moment, please.

(You’re bluffing, of course. However, the bank’s sales team have strict targets, backed by incentives, that they have to meet—one of which is giving profitable customers discounts to stop them leaving.)

Bank rep: We can’t match the rate you have quoted. However, we understand you are a valuable customer, so we would like to offer you a 0.15 per cent discount.

You: That’s not good enough. I’ve already got conditional approval … so in order to stay I need at least a 0.5 per cent discount. Could you please speak to your supervisor? I’m happy to wait.

Bank rep (a full six minutes later): On reviewing your case, we can offer you that 0.5 per cent discount on your current rate.

You: Brilliant! Please send me an email confirming the new rate and confirming that it will be applied as of start of business tomorrow.

Financial

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Comments

  • Azrael169 on 07/06/2017 - 00:51

    Tried this and it did not work. Had 3 home loans with ANZ, good equity, great income… Simply not interested in playing ball. Switched to CBA and only at the final drawn down for loan transfer where they interested in discussion interest rate.

    • icejester on 07/06/2017 - 00:53

      They know how hard it is to change and the hassle so they won't capitulate until the end.
      This way the majority will give up beforehand

  • yolohobo on 07/06/2017 - 01:08
    +5

    While I'm totally on board with the idea of "ripping off" the banks, it's worth noting if you try and implement advice from a popular and publicly available source, you need to realise the banks are most likely also aware of it and have taken steps to prevent or at least minimise it.

    When you call up the person you're speaking to will most likely realise what you're doing, so if you're just trying your luck you're not going to get very far. In this case you need to be prepared and actually willing to move to another bank.

    It's also worth noting banks can see what applications you've made with other banks and if you were approved or declined, so dont try and bluff about having approval you don't actually have.

    • j4ice on 04/08/2017 - 16:27

      My understanding is that they can see what applications you've made but can't see whether they're approved or declined. So maybe you can submit an application just for the purpose of pulling this bluff?

    • random12 on 04/08/2017 - 21:24

      u are a noob.

      they cannot see approvals or declines.

      (I am assuming you are talking about them seeing the credit report. A credit report shows enquiries. It does not show approval/decline)

  • Pharos5 on 07/06/2017 - 01:34
    +2

    I work in the industry. The success rate for this would be very dependent on how large your accounts and income are.

    Many lenders have been in their roles for decades and you can't bullshit a professional bullshitter. Added to that, be aware that we have a lot more information available to us than you might expect.

    By all means fight for a better rate, but you should be genuinely ready to switch banks for it.

  • Typical16-bitEnjoyer on 07/06/2017 - 05:52

    I guess it's worth a try, but I wouldn't hold my breath. We're talking banks here not phone or energy providers.

  • [Deactivated] on 07/06/2017 - 08:01
    +1

    What ever happened to the couple of Japanese banks who were all ready to move into the market in a big way
    Did they realise how underhanded you have to be to make those big profits?

    No wonder city bank is still running the same credit card ad for the last 10 years

    Don't forget boys, if there aren't homeless sleeping on the steps of your bank, you're not doing it right

  • thydzik on 07/06/2017 - 23:59
    +1

    I have found that you need to get credible lower rates from a number of banks before they will consider your request.
    ubank is known for their 'no-frills' service, you can't really compare it to the big 4.

  • djkelly69 on 04/08/2017 - 14:07

    Just a little bump for those who might dig up this thread - did this with my bank (didn't use the script but the gist of it), and got almost a whole percent off my home loan interest rate (was on 4.7).

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