Currently with ANZ for Home Loan - Broker Recommended to Refinance with St George but I Want ANZ to Match It

DevlicK on 11/10/2023 - 12:17
Last edited 26/10/2023 - 12:49

So my current fixed rate is due to expire in November. I've started the process with my mortgage broker and they found that St George is offering a lower rate with cashback. I've read in a few posts that people have had success in requesting their current bank to match the lower rate and for the cashback.

My question is, what is the actual process for this? Do I lodge my application with St George (presumably take a hit on the credit score) and then wait for ANZ to contact me when I want to discharge my home loan with them in November when it expires? Or can I approach ANZ now and make that request, even though my fixed rate expires next month?

26 October 2023 Update: So an update for those interested. Received a call from ANZ and they escalated their revision of the Variable Rates after the end of my Fixed Rate term and could not beat or match St George's rate. ANZ said the best they can do is 6.30% for Owner-Occupied. St George offered 5.84%. Guess I'm going with St George.

Financial Home Loan Loan

Comments

  • Danstar on 11/10/2023 - 12:23

    Porque no los dos?

    • DevlicK on 11/10/2023 - 12:25

      Well if I do submit the request to discharge, I don't want ANZ to discharge my home loan prematurely before the fixed rate term ends as I would incur additional fees.

      • Danstar on 11/10/2023 - 14:15
        +3

        So ask them to beat it before applying. If they say no, then apply for new loan and see if they call you. I'm assuming they won't be calling you to discuss beating your rate, as I've never had my previous lender call me to try keep me. Although my home loans have always been for lower than "normal" amounts people usually borrow.

  • MS Paint on 11/10/2023 - 12:30
    +2

    I'm guessing your mortgage broker will not get a commission if you do this.

    • DevlicK on 11/10/2023 - 13:15
      -1

      They won't and I've discussed this with him. He's fine with it. I've been using him for years

      • MS Paint on 11/10/2023 - 13:40
        +1

        I've been using him for years

        Quite literally if you stay with ANZ 😉

  • Aureus on 11/10/2023 - 12:41
    +3

    Can't hurt to give ANZ a call and speak to the mortgage retention team. Tell them you are looking to leave at the end of your fixed rate term because of the better interest rate and cashback and see what they offer (or not offer).

    Also I would shop around. You don't need to go via your broker. Fair chance HSBC would give you a better interest rate and cashback.

  • rambutann on 11/10/2023 - 12:45
    +5

    In my experience the incumbent bank will give you very minimal discount and you will be better off refinancing.
    I have attempted this on several occasions - I go to the bank, tell them what i can get elsewhere, they offer something better but still terrible.

    • star-ggg on 11/10/2023 - 13:05
      +2

      My experience was instant matching, so it varies by bank. And I assume it varies month to month depending on the bank's desire to keep customers at the time and what funding rates they can get.

      • DevlicK on 11/10/2023 - 13:16

        I was hoping for instant matching as I do prefer ANZ's app over St George's. Obviously not going to be a deal breaker

  • Drakesy on 11/10/2023 - 12:47

    Do you get a cashback?
    9 times out of 10 i'd trust my broker.

    • DevlicK on 11/10/2023 - 13:16

      That's what I'm hoping ANZ will also match. I've hear people who have successfully got their bank to match rate and cash back

  • jikijiki on 11/10/2023 - 13:38

    Hey, I don't have an answer but why would lodging an application affect your credit score?

    • DevlicK on 11/10/2023 - 13:41
      +1

      My understanding is that any application for a line of credit would affect your credit score. At least I know this is the case with credit card applications. I assume the same would be for home loans?

  • add-delay on 11/10/2023 - 14:54
    +2

    Did this last year. Broker suggesting refinancing to ING from ANZ (which he previously organised). ING ended up dicking us around (had to sign up for an everyday bank account first, fine, but then took over 6 weeks to approve my wife on the account with us continuing chasing what's happening). We finally put it through, and ANZ immediately rang us, matched what ING was offering, and also gave us $4000 cashback to stay.

    Broker suggested we take the money, and then switch anyway once it's deposited, but decided that since the rate was the same we may aswell stay and save ourselves all the discharge fees.

    • DevlicK on 11/10/2023 - 16:31

      Good to know! I'm hoping I can convince ANZ to match it earlier in the process so we can skip all the paperwork but we'll see

  • Tee Rex Arms on 11/10/2023 - 14:59

    Match but no cash back

  • caboose on 11/10/2023 - 15:31

    I was in a similar situation last month - broker suggested moving from CBA to St George. I immediately gave CBA a call (prior to lodging anything with STG) and told them that I was looking to refinance with STG and that they were offering 5.xx% interest rate and $2000 cashback - CBA immediately beat that by 0.05%.

    We had been happy with CBA so didn't bother moving. This was about 2 months prior to our fixed loan portion expiring, but we immediately got the lower rate on our variable portion which was a drop of about 0.5%.

    • DevlicK on 11/10/2023 - 16:30

      Did they also provide the cash back?

      • caboose on 12/10/2023 - 10:58

        No, they did not offer any cashback for the retention. I was willing to leave ~$1,000 on the table to not deal with the move (it would have cost about $1k to discharge and remortgage).

  • echelon6 on 11/10/2023 - 15:42
    -1

    a bit bm to your broker

    • DevlicK on 11/10/2023 - 16:29

      I've spoken to him about it and he is fine with it.

  • avoidfullprice on 11/10/2023 - 16:59

    I've read in a few posts that people have had success in requesting their current bank to match the lower rate and for the cashback.

    Were the posts about people with fixed term loan? Is this apple with apple comparison?

    what is the actual process for this?

    My broker told the banks when we want settlement to occur, so…

    • DevlicK on 11/10/2023 - 17:30

      Were the posts about people with fixed term loan? Is this apple with apple comparison?

      I'm refinancing after my fixed term loan ends (I.e. When it changes to a variable loan). From memory, yes these posts were in some of the Refinancing deals that get posted here and the posts were all talking about refinancing after their fixed term loan expired.

      • avoidfullprice on 11/10/2023 - 17:57
        +1

        I'm refinancing after my fixed term loan ends

        But you are worried about ANZ discharges prematurely before your term ends, so not really the same thing right?

        So submit your discharge form now and say you want discharge after the term expires.

        Besides, this is not like churning NBN - your new bank (St George) needs to agree on settlement date that so they will take over title, payout ANZ etc

        • DevlicK on 12/10/2023 - 09:58

          hmmm I still think they're the same, it doesn't matter what I'm worried about. The question is about the process of the incumbent bank matching the rates and cashback of another bank. My situation (wanting to refinance after fixed term expires) vs other people's situation (able to refinance after fixed term expires) - I want to achieve the same outcome but want to understand the process (i.e. when is the best time to do it). From what I gathered in the comments of this thread, there's a chance of the bank matching it when I make the request to discharge. Even higher chance when I actually go through with the application of the new bank.

          Good to know about the settlement date, I wasn't sure if that was only in relation to new properties but this makes sense.

  • ol mate on 11/10/2023 - 19:30
    +2

    I did a ANZ > WBC refinance recently. I applied in June (to get in time for WBC's cash back), but didn't settle until late September (the week I had to settle by to get the cash back).

    ANZ didn't call until the discharge notice had been sent and WBC had booked in for settlement with ANZ.

    ANZ beat the rate by 0.05% and offered to match the cash back. The ANZ cash back was in my account within a week.

    • DevlicK on 11/10/2023 - 19:42

      Thanks so sounds like I should try to contact them now but don't expect anything until the very end.

      • avoidfullprice on 12/10/2023 - 07:21
        +3

        Sounds like you actually need to initiate the refinance process with St George and not just bluff ANZ “I’m gonna do it unless you match”, which is what you are asking how to in this post, right?

  • Sidor on 12/10/2023 - 07:24

    In a same boat, currently with ANZ and fix IO rates term ends today and loan reverting to P&I. Wondering if I call ANZ, they will be willing to extend IO period with batter interest rates or unlikely?

    • MarsTitan on 12/10/2023 - 11:40

      Give them a call they should be able to offer a sub 6% rate without much effort. But aim for 5.79%.

  • lgacb08 on 13/10/2023 - 19:17
    +1

    No chance you'll get anything from ANZ, I switched from them last month and not a single call I got from them, happy served the request and save me the hassle of answering the call. Right now only westpac and its subs are giving cashback out of the 4. Cba started the trend but quite a few resisting the idea.

    • DevlicK on 13/10/2023 - 22:43

      Interesting. Thanks for sharing your experience. Seems like vastly different experiences between ANZ customers with some being offered a better rate than the new bank and some not getting anything at all

    • ol mate on 14/10/2023 - 16:54

      How long have you banked with ANZ?

      For me, I've had an account with them for around 16 years and ANZ mentioned "loyalty" in the call. Not sure if that actually does anything - I've mostly only held transactional accounts, churned a few cards and had a home loan with them for 3 years.

      • lgacb08 on 14/10/2023 - 21:46

        less than a year, i only stick around with ANZ for the cashback, they're the worst of the big 4, behind in terms of everything. If you've been with them for 3 year and not on 1.99 fixed rate you got slugged big time.

  • starlightshine on 18/10/2023 - 14:22

    I'm in the same boat, looking for any good offers.
    Presently with citibank, my loan term is expiring.
    Did anyone receive a better offer or cashback after calling citibank?

  • tooblue on 19/10/2023 - 12:36

    I have sent emails to the branch and listed the offers and rates from other banks. They reduced the rate by 0.15% twice within one year after my two emails. The rate is not the best but better than most other banks. So I stayed.

  • DevlicK on 26/10/2023 - 12:49
    +2

    So an update for those interested. Received a call from ANZ and they escalated their revision of the Variable Rates after the end of my Fixed Rate term and could not beat or match St George's rate. ANZ said the best they can do is 6.30% for Owner-Occupied. St George offered 5.84%.

    Guess I'm going with St George.

    • lgacb08 on 26/10/2023 - 22:08

      you're mucking around with them for too long mate, last time I was with them I even on 5.94, once you make some money out of them best to move on quick.

      • DevlicK on 27/10/2023 - 00:04

        Well not really. I haven't spent any extra time trying to get them to match.

        Got the broker to submit the refinance documents and the discharge form. They gave me a call - couldn't match it so I'm proceeding with the discharge

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