CBA Home Loan Guarantee. Will Beat and Advertised Rate (Big 4)

thorpef1 on 12/09/2011 - 13:35
Last edited 12/09/2011 - 13:35

Hi everyone.

I am an employee of CBA and just received an email stating that CBA will beat ANY advertised home lone rate from ANZ, NAB and Westpac as part of their Home Loan Guarantee

Save money and own your home sooner. Bring us a currently advertised rate from ANZ, NAB or Westpac and if our rate is not already lower we’ll beat it with a discount on the rate for our equivalent home loan. Available on new borrowings of $100,000 or more, with a minimum deposit of 10%. We’ll also personalise your loan to help you pay it off more quickly.

General Discussion

Comments

AntMan76 on 12/09/2011 - 13:36

What about existing customers??
- carlenet on 12/09/2011 - 13:39
  
  +4
  
  Drown your sorrows and listen to Shannon Noll! :P
[Deactivated] on 12/09/2011 - 13:39

+3

Beating big 4 rates is nothing special, they're the worst rates to begin with anyway.
MementoMori on 12/09/2011 - 13:43

+2

Well, beating 'advertised' rates are easy, anyone can get good discounts off those.
Jacala on 12/09/2011 - 13:45

The catch here is 'advertised home loan rates'. All the big banks — CBA included — have packages including a discount, typically 0.5-0.7%, off their advertised rate, meaning that their best rate is never their advertised rate anyway.

The credit unions' advertising plays on this too, saying "we're cheaper than the banks' advertised rates" when they are in fact usually more expensive than the best rate you can get from a bank.
[Deactivated] on 12/09/2011 - 13:48

+1

ahh moved to forums…no longer spam
1) you forgot "Only until the end of the month"
2) it's not the "big 4" as they're one of them, so only three - NAB, ANZ , Westpac
3) Fees, fees, fees, fees
bargain_knight on 12/09/2011 - 13:50

Not sure this is a bargain. We need to know what the best rate they will offer is. E.g. UBank have a 6.79% home loan. UBank is effectively NAB, so is CBA's rate 6.75% for all approved applicants?
dreamzz on 12/09/2011 - 13:52

CBA has alreaday dropped their interest rates on fixed loans
http://www.commbank.com.au/personal/home-loans/fixed-rate/ra…

Read some article regarding recession will hit australia by starting of next year!
In US now the variable rate interest is only around 2%, so the biggest question is to fix it now or wait for the variable rates to drop
BenK-Oz on 12/09/2011 - 14:36

i'm enjoying my 6.58% from loans.com.au ;), well enjoying the rate anyway, some of their services leave a bit to be desired
- amsaini15 on 12/09/2011 - 23:24
  
  I am with you.. Nobody can beat 6.58% rate withh offset attached and no monthly fees :)
bargainhunter_dande on 12/09/2011 - 16:49

Be cautious signing up with CUs and Societies. I'm paying the price of going with a society fixing for 5yrs. (Was with Westpac)
These guys are just terrible.
- BenK-Oz on 12/09/2011 - 17:04
  
  what are some of the issues?
  - bargainhunter_dande on 12/09/2011 - 17:15
    
    Fees. High fees for almost everything.
    
    There's no local branch here in Vic. So I have to deal by phone, post etc. And lot of time wasted.
    
    Unlike a branch manager who will know you, here we just talk to a call center guy. God knows where he is.
    
    Very rigid rules & conditions. You cant get them to personalize a loan,fees, etc.
    
    These guys will valuate your home as cheap cr@p. Even during the peak market these guys valued about $60000 lower.
    I can just go on.
    
    I'm glad I'm coming out of the 5yrs next year. But I'll break it and pay the fees still can come better off.
    - [Deactivated] on 12/09/2011 - 17:48
      
      well if you didn't know about the fees & lack of branches before your loan…….
      As for fee, not knowing the branch manager, call centres, valuations, rigid rules & conditions, you get that with all banks. unless you think you've found one? Whilst the CBA has the best customer service of the big 4 (nab is a dismal last), I still rate Police Credit Union head & shoulders above any bank I've dealt with.
freemoneyhunter on 15/09/2011 - 18:54

Get a variable rate mortgage, obviously rates will be going down. 6.58% is not that cheap anyway considering the RBA rate is 4.75%, it is unusual that banks pay depositors above the RBA rate, it is because they are desperate for money. During normal cycles, deposits will pay alittle below the RBA rate and loans will be slightly higher above the RBA rate. 6.58% is still around 2% higher than the RBA rate, I assume that will narrow when rates start to go down.
- amsaini15 on 16/09/2011 - 21:53
  
  6.58% is the variable rate and is locked to RBA's rate for next 5 yrs. That means no more out of ordinary rate changes like the big 4 banks. History tells Banks cant be trusted with rate changes. Moreover if you want to change, the most you pay is $300. Can any Bank/Society beat that?
Geewhizz on 16/09/2011 - 06:28

Does anyone (a real person, not a rep) have experience with a home lender that they're happy with? Good service, flexibility, reasonable rates?
- BenK-Oz on 16/09/2011 - 21:59
  
  bankwest were pretty good, but rates aren't as competitve as they were before cba bought them out.
  if you are low maintenance (i.e. happy to only use internet banking / withdrawls from eftpos) then one of the online banks like loans.com.au or the nab backed ubank are good. their online services are not as good as the big banks though. (e.g. no android app for banking, internet banking interface could be improved, cant change the pin number on my credit card)
  - Geewhizz on 17/09/2011 - 06:51
    
    thanks for that
    - wisc on 27/09/2011 - 11:02
      
      im pretty happy with the service from bank west, however, (rate curtter that goes down .1 every year is currently at 7.3 - will go down to 5.8 at the current interest rate)its a pretty high rate all things considered.
f4te on 16/09/2011 - 21:32

Thanks thorpef1 for posting this! I went to my bank and told them I can get a better deal at CBA, so my bank offered me an even better one :)
ionn26 on 17/09/2011 - 07:22

I am in the process of getting a loan from a bank.. I have called up credit union(Newcastle, Illawara) I have also looked into Commonwealth, NAB, ANZ and westpac(and St. George). I have found that the rate might be the same, but the extra fees that they charge(hence the comparison rate is higher) will kill most of your savings.

I have had HORRIBLE Commonwealth lender experience when I am trying to negotiate with 'potential lender' from commonwealth, I have been told by the lender that all I care about is the rate and not the customer service and if that is the case, she does not want my business at all. I thought that was harsh.

I did the same thing with NAB to try negotiate, NAB lender was extremely nice and patient(to my surprise I have to say since I have been with NAB for the past 15 years and no I am not a loyal customer and I have had my fair share of REALLY crappy customer service from NAB) and even though I negotiated hard on the rate she explained everything little kink that I need to watch out for and also 'claim' that she will help me negotiate the best rate with her head office, but I am not sure how comfortable I am not knowing the rate I will get until I apply for the loan.. that did not sit me well.

ST George(STG) came out fighting dropping their rate giving me 1% discount, and no monthly fees etc, BUT they would not drop their package fee for the first year at all.

I lastly called ANZ just thought I gave it a try. To my surprise, they gave me 1% discount and also no fee what so ever and waived the package fee for the first year a well. Makes them the cheapest I have found. I am dealing with mobile lender so I can call or text him even at 8 or 9pm at night, and it fits my work schedule. I do love the fact that I can deal with a lender late at night or a question that just pop into my head and I need to find it out and he is available even when it is late. The only complaint that I have with ANZ is the pre-approval, that took a week to get. Whereas other banks took like 20 minutes to do. That really surprised me. My only concern is I am never an ANZ customer so I don't know what they will be like when I eventually go with them
- joannatan on 17/09/2011 - 11:35
  
  did u speak with the lender at the branch or you call the mobile lender come to your place when you dealing with cba? some mobile lender at cba they are working as area manager as well, as area manager, they got authority to give you discount without asking to the regional area manager, and they also have authority to waive the fee, but thats only for a bigger loan. i can't said what is small and big, coz it is depend on that area, eastern suburb sydney, loan 500k is small, but if you talk with someone at western suburb sydney, 500k loan is big.
- Geewhizz on 18/09/2011 - 06:25
  
  I lastly called ANZ just thought I gave it a try. To my surprise, they gave me 1% discount and also no fee what so ever and waived the package fee for the first year a well. Makes them the cheapest I have found. I am dealing with mobile lender so I can call or text him even at 8 or 9pm at night, and it fits my work schedule. I do love the fact that I can deal with a lender late at night or a question that just pop into my head and I need to find it out and he is available even when it is late. The only complaint that I have with ANZ is the pre-approval, that took a week to get. Whereas other banks took like 20 minutes to do. That really surprised me. My only concern is I am never an ANZ customer so I don't know what they will be like when I eventually go with them
  
  Haha, I wonder if your mobile lender would mind travelling a few hundred k's? Sounds like you've found a gem.
ionn26 on 17/09/2011 - 17:06

I spoke to a mobile lender on the phone not at the branch… I am getting a $830K loan which is neither small nor big, but either way I was disgusted what she has said to me. She is not getting my business that's for sure
- joannatan on 17/09/2011 - 17:29
  
  interesting, but i knew some of the mobile lender once they meet their monthly target, they are interested anymore with the new business, it is because cba doesn't rewards their sales staff with commission, only end of year bonus, which is not good on my own experience, as i can see a lot of them really not doing the best for the bank, as they think no point do extra mile coz your bonus already cap at certain level. but you should complaint to their customer relation at that time, to let them know, normally the customer relation will report to her boss, so let her boss know about this lender attitude.
ionn26 on 17/09/2011 - 20:36

+1

Well… there is a long story behind it… the fact is that I knew this mobile lender when she was at St. George. My friend got loans from her and highly recommended her for her rates and service. I never needed to get a loan since I was not in the market til I save enough of the 20% deposit. When I approached her, she has left st george and works for CBA at the moment. When she said all those horrible things to me I complained to my friend who highly recommended her. My friend was really surprised as well. My understanding is that yes apparently the pay structure is very different from STG to CBA… and may be like you said no point for lender to go that extra mile. Well.. I hope that the bankds continue to link the executive bonuses to the customer satisfaction and everyone keep giving them low score and hopefully(and may be wishful thinking) that the bonus is not $22 million but $16 million… which is still a few million that more than alot of people earn in their life time.

Anyway… my point is I know that you can get decent service and still get a good rate… for the time being ANZ and NAB I am the happiest with with very low rate and very prompt and courteous customer service. I know that others on this bulletin might disagree but that's just my experience.
- joannatan on 17/09/2011 - 20:47
  
  i left that banks many years ago, also because of this rewards structure, but i still take new business even i have achieved my monthly sales target, but even you are the top sales, you don't get other proper rewards such as promotion, except your max yearly bonus.
antonthenet on 18/09/2011 - 11:07

Has anyone successfully got a lower rate with their CBA loan yet with this new promotion?
- akyeeeahdude on 22/09/2011 - 12:08
  
  Yep - existing loan (wealth package).
  
  It isn't easy though. I called up and spoke to a standard Home Loans advisor and expressed my disgust that myself (as an existing customer) only receives 0.8% (7.01%) off the standard variable rate (7.81%) yet new customers can get 1.0% off (6.81%). I asked to get a total of 1% off but they refused UNLESS I borrowed another $100 000 of funds (which I don't need nor want). So after telling them what I can get elsewhere (U Bank 6.79%. HSBC 6.79, ANZ 6.9%, NAB 6.97%, the list goes on) they finally came back with 6.91%.
  
  They aren't very proactive though. Called last Monday, told they need to send it to "Pricing" and that can take 5 WORKING DAYS. Did not get a call back. Called on THE NEXT Tuesday and the operator I got this time could not see that the request was actually sent to Pricing so I sent a new one and was promised a call back as soon as it was done. Called on Wednesday and asked for an update since I hadn't been called back yet again and they said we have heard back from pricing and will offer 6.91%.
  
  I don't mind paying a slightly higher rate but I expect great service. Unfortunately this isn't the first time it has happened. I called and went through the motions back in April as I was only getting 0.7% and new customers were getting at least 0.8% or more depending on their borrowings. Same process - the guy said I'd get a call in 72 hours. Didn't get a call so I called a week later and they were most apologetic and admitted it was never sent. The supervisor then said the Retention team would call me that afternoon which they did and I have nothing but good things to say about the gentleman I spoke to.
  
  I accepted the 6.91% but I am still very annoyed that they won't give me the 1% yet new customers get it.
ionn26 on 23/09/2011 - 05:51

aagh… the power of people willing to let CBA charge extra 0.1% compare to others and accept crappy service… always amazes me.

Don't underestimate for banks the extra 0.1% x billions of dollars of loans that they have. Just calculate that extra profit they are getting (or not getting if you switch)

Hence… these days I care less about service from the bank since they are mostly sub-standard(yes I am generalizing), it who give me the cheapest out of the big 4 to kick start their competition…
- joannatan on 27/09/2011 - 13:27
  
  mate, all the financial institution are the same, they are employ human being, some times the human being got shit, then shit happen. i don't believe other bank always give the best for their customer, recently i got shit with nab. i mean one incident can't be apply to everyone within the bank.

CBA Home Loan Guarantee. Will Beat and Advertised Rate (Big 4)

Comments

New Forum Topics