ubank - Not Willing to Negotiate Home Loan Rates Anymore?

[Deactivated] on 05/06/2022 - 20:36
Last edited 05/06/2022 - 21:46 by 1 other user

Received that inevitable letter in the mail advising UBank will be increasing my variable rate to 2.14% pa due to market conditions.

So I decided to phone up the retention team as usual to negotiate better rate, but it was the first time they said they can't go any lower than 2.14% (already advertised rate on their website). Just found it really strange, as all my previous dealings with them have been very open for negotiations, matching competitors.

Anyone had any luck with them lowering the rates below the advertised 2.14%?

Financial Ubank

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Comments

  • rektrading on 05/06/2022 - 20:40
    +3

    Lenders are anticipating a rate hike.

    They know they have borrowers by the 🏀 and don't need to negotiate.

    • modsec802 on 05/06/2022 - 20:41
      +4

      Exactly. It’ll be higher than 2.14 on Tuesday with the incoming 0.4% rate rise this month

    • [Deactivated] on 05/06/2022 - 20:50

      Still, took me by surprise.

      I agree they do have us by the marbles, but aren't they still competing to hold onto our business?

      • SBOB on 05/06/2022 - 20:51
        +5

        I agree they do have us by the marbles, but aren't they still competing to hold onto our business?

        nothing stopping you refinancing elsewhere

        • MrThing on 05/06/2022 - 20:59
          +1

          To get a lower rate by refinancing, OP would have to go to a smaller provider (homestar, reduce homeloans, etc) who may require more onerous requirements to satisfy their loan criteria

          Smaller lender, lower appetite for risk. Bigger lender, more appetite for risk

          OP may also not qualify for these smaller providers if his circumstances have changed, or the interest rate rises now put him in a position which didn't exist when he signed up for UBank.

          Maybe OP needs an offset account, which these small providers may not provide for the bargain rate OP wants. Maybe he wants to be with a lender who is an ADI which a lot of the small lenders are not

          • SBOB on 05/06/2022 - 21:02
            +1

            @MrThing:

            Maybe OP needs an offset account,

            ubank doesnt do these from memory

            To get a lower rate by refinancing, OP would have to go to a smaller provider (homestar, reduce homeloans, etc) who may require more onerous requirements to satisfy their loan criteria

            and therefore they are on the cheapest market available rate…

            If you're not willing to jump ship for a lower rate (or one isnt available at an equivalent lender), why would a bank offer you a lower rate

            • thetrain on 05/06/2022 - 22:13
              +1

              @SBOB: ubank is undergoing significant change as they merge with 86400

              ubank doesnt do these from memory

              They now offer offset. Check the website if you've previously visited and the brand changes are clear

              • MrThing on 06/06/2022 - 08:40

                @thetrain: The new ubank kept 86400s loan brands

                Those being the "own" and "neat" products

                • thetrain on 06/06/2022 - 18:28

                  @MrThing: that makes more sense, I'm from the 'old' ubank so its new to me

      • brendanm on 05/06/2022 - 22:00

        Who is currently doing lower than 2.14?

        • Clear on 05/06/2022 - 23:31
          +1

          Tic:toc who are Adelaide and Bendigo Bank backed.

          • brendanm on 06/06/2022 - 06:45
            +1

            @Clear: They know op isn't going to go through the fees and hassle for that small difference. No reason to drop it further.

            • Clear on 06/06/2022 - 06:59

              @brendanm: There's no fees for going to tic:toc. Only a small one from the company that does the settlement.

              • brendanm on 06/06/2022 - 07:28

                @Clear: I meant the title transfer etc. On a $1million loan, the difference per year between ops bank and tictoc is about $500. Title transfer etc is $6-700. Plus the hassle. Makes more sense to refinance each year to places that do cashback.

                • Clear on 06/06/2022 - 08:18

                  @brendanm: Looks like their cashback has ended. They were doing $2022 before.

        • MrThing on 06/06/2022 - 08:40

          Homestar, reduce, tictoc (just), loans.com.au (promo, just), onetwo (just, also cashback), well money (just)

  • MS Paint on 05/06/2022 - 21:41

    letter in the mail

    As in snail mail?

    As in its 2022 and the postie dropped off a letter to inform you of such information?

    • Baysew on 05/06/2022 - 21:50
      +8

      Check front lawn for tyre tracks to confirm.

  • Mechz on 05/06/2022 - 21:53
    -1

    I would have called up and asked for them to fix it at the new rate for 5 years.

    • miwahni on 05/06/2022 - 23:27
      +1

      That would be a dumb move, considering their five year fixed rate is 4.80%.

      • Mechz on 06/06/2022 - 11:21

        Dumb until their variable rate is 6%+ Good luck with that…

      • dcep on 20/04/2023 - 22:07

        Still dumb move ?

    • MiguelSanchez91 on 06/06/2022 - 12:28

      Why on earth would you do that?

      Source: am broker

      • dcep on 20/04/2023 - 22:12

        Why on earth would you do that?

        I guess it makes sense now.

  • Hugh G Rection on 05/06/2022 - 21:56

    i wish, lol.

    they don't need to negotiate, we need them more then they need us.

  • Trying2SaveABuck on 05/06/2022 - 22:51

    you could always refinance there arent a whole lot of providers that offer better rates then ubank but i'm sure they do exist.

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