Westpac and ANZ among the big 4 didn't pass on the full rate cuts and I'm really annoyed.
This is the comparison for them:
| Bank | Old standard variable rate | New standard variable rate | Saving per year |
|---|---|---|---|
| CBA | 5.37 per cent | 5.12 per cent | $743 |
| Westpac | 5.38 per cent | 5.18 per cent | $588 |
| NAB | 5.36 per cent | 5.11 per cent | $743 |
| ANZ | 5.36 per cent | 5.18 per cent | $536 |
So here's the question, I've just changed from CBA to Westpac about 6 months ago.
When's too soon to change again? Any implications in that?
5% ? what is this ?
i thought some Ozb posted they're with CBA at <4%
This is the published variable rate. Most people will get a fixed discount off this rate.
i go to my broker once every 2 years, the only issue when switching loans through a broker, you have to pay a discharge fee BUT my broker will usually foot that for us if he finds us a better deal
Some banks currently have offers to switch which would cover the discharge fee. I'm more interested in if there's any implications in switching 'too often'?
Not really. Just that it's a hassle, and can cost fees etc. ANd you have to go through the credit check process which is the main hassle getting the documents together.
I never understood how brokers can afford that cost. Is that really a free lunch?
Brokers dont really make that much commission and banks have claw back policies is loan is moved too quickly
You have to pay a discharge fee regardless of you using a broker or going to a bank direct
I got a fixed for 2 years at 3.8 with Westpac in May 18. The best option is to wait until banks are offering a cashback for the refinance which will cover the fees.
Refinance as much as you want, it will only affect your credit history if you go into arrears.
Your credit history will be impacted everytime a hard check is done. Banks typically do only hardcheck if you apply directly with them.
Banks only really care about having a stable job, good repayment history and equity in the property. In my experience. I refinanced on a part time job with no problems.
OP - what rate are you paying now?
3.85 variable
Switched to hsbc for ~3.6 , redraw account instead of offset.
I wonder what are the drawbacks/fees of redraw accounts ??
What's the diff between redraw and offset?
difference is -
redraw - is not separate account. its facility where you take out money from your home loan account.
offset - is separate account ,normally transaction account, link to loan account and you pay interest on loan amount less offset balance.
Also another difference is who gets money in event of default of loan -
redraw - the bank takes the money. Homeowner don't have first right
offset - homeowner has first right.
but if you know you're going to default, wouldn't you just quickly redraw the maximum out of your redraw account?
@witsa: I got your point. Homeonwer's action will be driven by situation and intention so if they can access funds before going bankrupt then nothing is stopping them to move out funds.
Once every 12 month you should call your bank to discuss/ask for better interest rate. Use some offers from competitor banks to negotiate.
If they still don't offer better rate then go for refinance.
One of my friend is in process of taking new loan from CBA and negotiated 3.79 % rate.
I am a broker and can say that we monitor our clients rates on an ongoing basis. We don't want our clients credit score to be impacted by frequent home loan queries on their file and so guide our clients taking a holistic approach. Whilst banks clawback our commission (varying scale between 0to 2 years) if the client refinances before 2 years, we still investigate the rates for our clients on an annual basis and review options for our clients. One of the option we have and use frequently is to approach clients the current lender and ask for a greater pricing discount. As a broker we have a channel to do that through many lenders and saves the clients from doing the rounds. That's the service brokers can provide. In general check with your broker or bank first if they can match the rate you are seeking and if not then review your options. Changing lenders frequently for minor benefit is not advisable and does more harm to your future prospects in getting a loan.
i usually get it fixed for a couple of years and then engage a mortgage broker a few months beforehand to see if its still the best rate.
usually they give you points or money to move as well.