1st Time Refinancing - Tips? Staying with NAB?

jlim87 on 12/06/2019 - 18:48

Hi, so I'm currently with NAB with my fixed deposit at 3.88% and my variable rate at 4.06%.

My wife and I recently signed up to quite a number of credit cards for both business and personal, so I'm a little concerned with refinancing. Is steps to refinance as harsh as applying for the initial home loan we did years ago? What are the chances of getting denied for a refinance?

I'm not too fuss with staying with NAB since I do all my personal and business banking with them, makes logging into one portal a lot easier, but obviously that's assuming I can get a decent rate, which leads to the question of what's a decent rate these days I should negotiate for?

Thanks!

Financial Home Loan

Comments

  • Ughhh on 12/06/2019 - 18:59
    -2

    What are the chances of getting denied for a refinance?

    If you share all your financial details, I'm sure we can all make a guess.

    to the question of what's a decent rate these days I should negotiate for?

    Have you looked online? Basic research like looking at what other big4 and lenders are offering?

    • jlim87 on 12/06/2019 - 19:06

      Have you looked online? Basic research like looking at what other big4 and lenders are offering?

      Yeah I have, but I thought it was common that whatever's advertised on their site is usually just a fluffed up number anyways and it all depends on what you negotiate with them directly or through a broker (which I've never used). Was mostly after hearing what others have to say with what their on and what's considered a good rate to know a ball park estimate.

      Should have noted that I'm overseas at the moment so not looking forward to make these calls until I'm back hence why I haven't actually called.

      • Ughhh on 12/06/2019 - 19:10
        -1

        Try 3% and free everything.

  • crashloaded on 12/06/2019 - 19:23
    +2

    Hey guys I'm happy with all my banking but I want to make my own life more difficult, do you think I should do it?

  • Skramit on 12/06/2019 - 19:55
    +2

    After the recent rate cut you should be aiming under 3.50% as a decent rate.

  • [Deactivated] on 12/06/2019 - 21:02

    get the number from the other tier 1 bank and ask NAB to match. They, and the other tier 1 banks, usually match it to the point where you can't be bothered with refinancing hassles.

  • mortgagebroker on 12/06/2019 - 21:24

    Are you looking to move banks?
    What are the break costs on the fixed loan?
    Will the cost of refinancing eat into the interest savings or even make it worse? is it a big loan?

    Your rate will reduce by 0.25 down to 3.81.

    Your rates are not bad.

    • jlim87 on 12/06/2019 - 22:57

      Not necessarily looking to move unless it's a big savings. Just after a decent rate I guess. Thanks for sharing that my current rates are decent.

      Remaining loan is about 150k fixed, 300variable.

      • mortgagebroker on 12/06/2019 - 23:09

        Call up and ask for a reduction. You will likely get some reduction. Might be only .05 but it's better than nothing.

    • Gerry H on 13/06/2019 - 11:46

      4.06 is not a good price. esp given he owes 450k. but this is NAB so i dont know the general rate, compared to CBA rates people are getting https://forums.whirlpool.net.au/archive/2705960 its quite bad

  • wearabloodymask on 12/06/2019 - 22:17
    +1

    I have recently been through this and you will not be getting 3.50 with tier 1 as someone else suggested. I pushed very hard with NAB and recently got 3.88 (so inc the .25 rate cut they passed on my rate as of Friday will be 3.63).

    whilst i may get a .05 discount by going to a different bank that is simply not worth the hassle and stress for me. I also got moved onto a more modern package with a free credit card with 90k FF points.

    my suggestion is to be honest with NAB and say you are not happy and you were offered XX rate with another bank, thinking of leaving and wanted to know what NAB could offer.

    good luck

    • jlim87 on 12/06/2019 - 22:59

      Thank you very much for sharing this. At least I now will know what's a good rate to settle for. Similar to you, I couldn't care much about saving a little bit more with another bank over a small margin. Not worth the hassle.

      Thanks again, this was super helpful.

    • workhappens on 13/06/2019 - 00:09
      +1

      I agree with this sentiment.

      My rate prior to the recent cut was 3.85% at Big4.

    • Skramit on 13/06/2019 - 08:11

      Lots of Tier 2 banks offer under 3.50 as their advertised rate. There's not much reason to stay with Tier 1 unless you really need the brick and mortar branches.

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