I read a new yesterday that ANZ will reduce their interest rate for owner occupied properties with less 80% borrowing by 0.34%. However these savings will only be available for new borrowers.
Is it standard practice for a bank to do these reductions to attract new customers where the existing customers continue to suffer? I know the existing customer has an option to refinance.
Word is a lot of existing customers wouldn't be able to refinance under the new lending standards. So it looks like they're stuck with a higher rate.
Yes, this is true. I've heard the same thing in that a lot of existing customers would be considered higher risk because of the new regulations that stipulate, from my recollection more stringent checks on repayment abilities? I had also read that there is some fear that if interest rates increase, and borrowers are not able to refinance or alter their mortgage commitments that a large number of householders will be left in pretty dire straits. Scary stuff. I really feel for people who have borrowed and now put into a vulnerable position.
Best option if you don't really want to change banks:
Normal customer service can't do squat so you'll just get standard response if send email/phone asking for better rate.
If they call your bluff and send the discharge, you need to sign anyway so it won't affect your loan.
i tried this and whoever i spoke to on the phone had the nerve to chuckle and say.. "well the fee to break your contract and whether you even meet the requirements per mortgage rule tightening recently haha i wouldnt say its worth it"
then i recalled the news all week about "mortgage prisons"
Do you have a fixed rate? Banks always put the shackles on with fixed rates, so I never take them.
It this had been confirmed? The lower rate and not for existing?
Suck you in with a lower rate, 3 months later get a letter saying your rate has increased.0.5% 🙄
SOMETHING THAT COULD HELP YOU
HI recently my fixed 3 year rate of 3.75 was about to expire. The new fixed rate had a 4 in th number which was a big difference to me obviously. I opted for the mixed variable of 3.83 and requested to keep in contact with the banker who i spoke to through the mortgage department if rates were to change. He recommended i keep an eye on the rate updates on the site which usually occur on every Friday, how ever i was pleasantly surprised receiving a call yesterday to say the 2 year fixed rate was now OMG OMFG 3.75!!!!! I HAD two choices… 1 was to pay upfront $750 to roll over and secure that fixed rate .. or pay a 220$ fine to break my current fixed and directly move onto the new 3.75 2 year fixed.
so what i recommend is you keep checking up on the daily rate changes and keep in good contact with one banking contact in mortgage as they can request lower rates for you depending on your circumstance.
Unless you have NO CHOICE never take a loan with the big 4 they are crooks
Like everything in Australia the more expensive a service is usually the poorer they treat their customers
Ie Telstra, Medibank Private etc
i used to think big 4s are bad & starts with 4
but i saw plenty of ozb commented they got broker deal with big 4s at 3.8 or so , which is close non-bank or o/s bank offer like BoS/HSBC at 3.6 without local branch service/supports.
It really depends on the individual circumstances ie size of the loan, credit history etc. Personally i don't recommend going to a broker either unless you are paying them yourselves because they get a commission on everyone they sign up thus they dont really have 'your best interest' at heart. All the loan information you need is online and it is free the old saying do your own research works best.
Sometimes you can get decent/good deals with the big 4 but usually they will screw you over the life of the loan at some point like the ANZ customers now are seeing there interest rates remain unchanged whilst 'new' customers are getting reduced rate, loyalty doesnt paid in most circumstances.
but my fixed rate was lowered. ive been with them 3 years
Let me start by saying that I am a broker and may be biased but before you start bashing me for my comment plz hear me out.
I do not agree with your comment @ brokers for two reasons firstly brokers are paid by the banks not the clients and that the commission is generally the same regardless of the bank so why would the broker try and sell the customer a solution(loan) that does not service their needs. For a broker it's about having long term relationships and shouldn't be a once off transaction.
Also you can do your research online(@ bank and their loan products) and it does help to be better equipped with the market rates but one cannot have the vast array of lenders and knowledge about their products if they are not doing this research frequently. We have also have knowledge about Banks and their asssessment criteia's for loan serviceability which you cannot have.
My recommendation would be to check with a broker and see if they have a solution(loan package) which services you better than what your own research says before you lock yourself into a new mortgage. You won't be paying or such services and they may have a better match for you.
Standard practice for most companies.
Just call up, or drop into a branch, and ask for a lower rate. Sometimes the manager will have leeway to approve that without a new application.
Yes.