Which bank should I go with for home loans?

Lspriggy on 10/10/2014 - 14:54
Last edited 10/10/2014 - 14:56

I'm looking at borrowing/topping up my home loans to 1.5m and have asked around for interest rate comparisons from several banks. To date, I have narrowed it down to CBA, ANZ, NAB and Suncorp.

They are all able to give 4.62-4.63% with the exception of CBA at 4.70% (all standard variable rate). Let's just assume the package fee is similar for comparison purposes and all offer offset plus a free credit card. I know there are cheaper rates out there like loans.com.au @ 4.54% but my preference is to stay with a banking institution.

I'm currently with CBA and have a relationship manager that I deal with for all banking related matters. I guess that's one of the value added services they provide as part of that package. Personally I won't mind paying that extra 0.08% difference for the value added services but thought I'll gauge what others have to say on this.

I have not been with any other banks and would like to know does anyone have any experiences with ANZ, NAB or Suncorp when it comes to having a home loan and transaction account with them? Based on the above, would you go with the bank with cheaper rates (even though it's still a big four).

Does anyone have any experiences with refinancing away from CBA and CBA comes back to match the lower rates?

Thank you.

Financial

Comments

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  • cypher67 on 10/10/2014 - 15:13
    -1

    No way CBA would lose your business over 0.08%, have you asked them to match it?

    • spriggy on 10/10/2014 - 15:15

      I did try though and they pondered over it for a few days and CBA eventually said no.

      • XeSSiV on 10/10/2014 - 15:27

        That's quite interesting. I think you should tell them that you're going with another bank because they're offering exactly the same services but at .08% less and see what happens. Best of luck!

        • spriggy on 10/10/2014 - 16:42

          Sorry, I should have been clearer. CBA tried to match and the best they could do is 4.70%.

        • Ryk on 10/10/2014 - 23:41

          @spriggy:

          ask for a payout figure, that may get them moving

  • McMaferMur on 10/10/2014 - 15:23

    ubank!

  • Islund on 10/10/2014 - 16:24

    HSBC?? I do not have to pay for the package for the life of the loan (variable and always 1.15% off their variable rate), relationship manager etc etc and my loan is not even half of yours.

    CBA are quite arrogant like that.

    • spriggy on 10/10/2014 - 16:47

      How do you find banking with HSBC seeing they don't have a huge presence in Australia? If I'm not wrong, you utilise NAB's existing ATM network?

      Anecdotally I've heard that they can be a pain to deal with for their credit card applications. I wonder how much of that translates into their other business?

      • Islund on 10/10/2014 - 23:37

        Do not know where you are but in Sydney their relationship managers are in the CBA and that is where my loan is - I have a visa with them that was not an issue. I understand they have branches in Ashfield, Chatswood, Hurstville, Burwood. They let you have 4 splits in your loan for no extra charge

  • stevednj48 on 10/10/2014 - 16:26

    ing direct we were with commonwealth but they weren't willing to come down to ing direct 4.74% fixed for 5 years so we went with them. best commonwealth would do was 4.99% ing yearly fees also lower at $195 waived for the first year

    • spriggy on 11/10/2014 - 00:50

      I wasn't looking at fixed rates for the time being. Thanks for letting me know.

      Still keen to be on variable even though some lenders have lowered their fixed rates recently.

  • shortgum on 10/10/2014 - 18:54

    best is to fix for 5yrs 4.99% pretty much same across all banks. bonus if you find one better and if you meet lending criteria get their loan approval

  • kctt on 10/10/2014 - 23:37

    I tried CBA but their rate is pretty high comparing with other banks.
    Finally choose Nab and get better rate than 4.62% ;-)
    I did contact home loan manager in 2 different NAB branches. One can offer better rate than the other.
    PM me if you want to get my Nab contact :D

    • spriggy on 11/10/2014 - 00:49

      Sounds like you had a good deal. Just PM you. Thank you.

    • [Deactivated] on 11/10/2014 - 00:50

      Is that a fixed rate or variable?

      • kctt on 12/10/2014 - 00:51

        100% variable, annual package fee (waived first year), 100% offset account, free platinum credit card. The Nab rate I got is very close to loans.com.au but has many features that easily makes it a better choice. The ability to get a quick response and arrange appointment to meet account manager within 24 hours is priceless IMO.

  • zerocritical on 11/10/2014 - 08:43

    Have you tried new castle permanent? A friend of mine got 4.49 fixed 3yrs and 4.58 variable from them recently

  • Jimothy Wongingtons on 11/10/2014 - 09:47

    4.63? Best we could get from ANZ was 4.99 :( Then again we're borrowing next to nothing I guess.

    • kctt on 12/10/2014 - 00:54

      I got quote 4.68% from ANZ when I asked them whether they can beat what NAB offer me :D

  • ace888 on 11/10/2014 - 13:28

    @spriggy
    For your 1.5m loans, you seem to get pretty decent rate there. Would you mind sharing what's ur LVR?

  • danb on 12/10/2014 - 13:25
    +1

    Are the percentages the variable rates or comparison rates? I'm not a fan of comparing just the variable rates as it's not the true rates and can vary a lot once fees are included.

    I'm sitting at 4.96% comparison rate with intech credit union but these big 4 jump up a lot when you look at the comparison rate.

    • TRS-80 on 12/10/2014 - 22:53

      The comparison rate comes out a bit high these days, since it's generally quoted for a $150,000 loan. Good for you if your loan is that small. Also it depends if you value a free credit card or not.

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