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Westpac 2.99% Investor Fixed + $3000 Per Property Refinance / $2000 Purchase Rebate + Annual Fee Waived 1yr + 0.3% Bundle Rebate

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Westpac Offers - Below the Line (not advertised)

Updated 2/3/20 - Westpac passed on full 0.25% RBA cut. The $3000 refi promo extended to 31/3/2020

Available under Advantage package, can combine with 100% offset on variable. Annual fee $395 waived first year.
Westpac gives a further 0.1% discount for 70%LVR or less.
Fixed has break costs if closed before expiry. No break costs under variable products.

Westpac Offer 1

Investor 2.99% fixed 2yr or 3yr. (CPR 4.20%). Variable from 3.38% (CPR 3.78%)
Owner 3.04% variable (CPR 3.45%). 2.88% fixed 2 or 3 years. (CPR 3.85%)

Westpac Offer 2

Westpac $3,000 cash rebate PER property refinance. eg. 3 properties = $9,000 bank rebate.
Westpac $2,000 cash rebate for purchases.

Westpac Offer 3

First Home Buyer 2.78% fixed owner occ 2 or 3 years.(CPR 3.75%)

Total Fees NSW & VIC incl GST

https://www.nswlrs.com.au/getattachment/4c30b323-f8a8-4939-b...
https://www.propertyandlandtitles.vic.gov.au/__data/assets/w...

Mortgage discharge fees  $143.5 (NSW), $116.80 (VIC) 
Transfer/Mortgage Registration fee  $143.5  (NSW), $116.80 (VIC) 
Title search $14.70 (NSW) 
Legal/settlement fee from incoming lender – Approx $100-$350
Discharge admin fee from outgoing lender – Approx $250-$350
Total fees approx $650 - $800 in most cases.

0.3% Bundle Rebate

In ADDITION to bank rebates, Bundle Home Loans gives a rebate of 0.3% of loan size (net at drawdown) for ANY bank or product, eg:

Given lower chance of a rate cut forecast, a low fixed rate can still save you more money as you can get an immediate benefit from today as opposed to waiting for the drop to occur. Given many banks are only passing on 0.1-0.15% each cut, and the RBA cash rate is 0.75%, there can only be a maximum of 3 cuts to zero, which may take a long time or unlikely to occur.

Always worth doing a calculation for your situation, eg:

If you have an existing loan and your rate is 3.29%, fixing at 2.79% will save you 0.5% each year.
On a $500k loan, that is a saving of $2500 every year.
If you're saving 0.5% and go with a lender giving rebates eg Westpac $6,000 for 2 properties, plus our Bundle Rebate of $1,500, that's a further $7500 in rebates, plus $2,500 interest savings, you are getting a benefit of $10,000 in just one year!

Len
Bundle Property Home Loans
T: (02) 9698 7186
M: 0422354868
E: [email protected]
ACL 445947

Disclaimer:
The information provided is for general education purposes only and is not intended to constitute specialist or personal advice. This has been provided without taking into account your objectives, financial situation or needs. Because of this, you should consider the appropriateness of the advice to your own situation and needs before taking any action. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.

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closed Comments

  • Any BTL offer for the investor variable rate? thanks. just submitted application for NAB but not approve or taken up.

    • Keen to know as well. And if thats a package with credit card n offset?

    • Yes investor variable Westpac from 3.32% depending on LVR and loan size.

  • +3

    what's the comparison rate

    • 2 yr fixed owner occupier = 3.85% comparison rate:

      https://www.westpac.com.au/personal-banking/home-loans/home-...

      • +3

        Thanks. Just to remind everyone of our view of CPR - take it with a grain of salt.
        There is a common misconception that lower comparison rates CPR will save you more money and better than a higher CPR - not necessarily and can actually be the opposite, here's why:
        - "Comparison rates" were invented by the government to reflect lender fees over the life of the loan.
        - It is based on a loan size of $150k over 25 years. If your situation is not that (which are actually most people), then the CPR is actually misleading and can cost you more money.
        - If your loan is larger than $150k, then it is usually better for you to pick a lender with a lower ACTUAL rate (even if the CPR is higher) as it will save you more interest each year. Of course take into account all the fees eg $395 annual fees, which may be less significant for a larger loan size.
        For larger loans, a lower ACTUAL rate (with a higher CPR) is often better than a higher actual rate (with a relatively LOWER CPR).
        - Hence CPR can be misleading and a lower CPR can be more expensive than one with a higher CPR but has a lower ACTUAL rate. The correct approach is to look at the ACTUAL rate plus all fees involved, rather than the CPR.

  • +2

    Is it for existing customer? I am currently with Westpac with variable rate.

  • +2

    Can you list all the fees included? Exit fee? Are there establishment fees? Loan service fee? Account servicing fee? Offset account? Is the variable 3.04% for LVR of 80%, 90% or 95%?

    Yes, having a lower interest rate may be enticing to change or take up a new home loan however, these hidden fees can all add up and may not be worthwhile.

    • 3.04% is for 70%LVR.
      Updated the post above to incl approx fees for NSW and VIC

  • I am with BOM fixed getting over end of this month, will it be considered as existing customer for wespac?

    • Yes

      • So not elgible for the cash back correct?

        • Correct. PM me for other lender options from 2.79% fixed owner

    • Should not be considered as existing customer as their systems are different and treated separately.

  • Just be aware NAB are offering $4k refinance and you can ditch at anytime. Might be better than fixing for a few years.

  • Also be aware too many credit enquiries reduces your credit score, plus fees for refinancing, so best not do it too often.

  • All three offers can be had at the same time?

    • Yes. Eg 2.99% plus $3k refi rebate plus first yr annual fee waiver plus bundle rebate.

  • So 2.88% fixed for 3 years for owner occupier + $3k rebate? Correct?
    - Can you do % fixed/variable ?
    - Does it include offset on variable portion?

    • Correct. Yes can split fixed/variable

      • Thanks, and free offset on variable portion?

  • Can this be interest only repayments for the investment property? I have an investment property but don't want to damage the destructibility before I pay off the loan my principle residence.

    • +3

      Yes but IO rates will usually be higher.
      My general advice regarding interest only benefits:
      Generally if IO rates are much higher, I suggest choosing the lower P&I rate.
      Principal repayments are not an expense - it just goes into the equity of the property - still  your money. 
      Higher IO interest rates are paid to the bank and is an actual expense - never to be seen again.
      Sure, IO is preferred on investor properties, but the tax  benefit of IO is very minimal and not as good as people think.

      For example:
      On a loan size of $500k, just the principal repayments are approx $650/month = $7,800 per year.  (interest expense on top of that).
      If you choose P&I, this means you lose the ability to deduct the interest expense on the principal repaid of $7,800 per year.
      Ie, you cannot deduct  approx $273 per year ( = 3.5% interest rate on $7,800).
      Deducting $273 per year extra gives you a tax benefit of approx $96 per year (assume your tax rate is 35%).
      So by doing IO, you only save $96 per year in tax refunds.
      Choosing 0.1% higher IO rate on a $500k loan costs you $500 per year.

  • $2k purchase rebate is when a new purchase is made?

  • +1

    is it common to have an annual fee on a home loan? I don't think any of my loans have this..

    • Usually there is annual fee for a "Package".
      Choice of Package or Basic loan:
      o   Package (recommended): annual package fee (usually $395), includes offset account, premium rewards credit card, lower interest rates.
      o   Basic: no offset, no annual fee, free redraw. You can still put extra money in the loan account directly to reduce interest charged, then redraw money for free when you need it. The difference is you must manually transfer money to the loan account, there is no automatic offset by leaving money in the savings account. There are potential tax deductibility issues arising from not having an offset account, happy to explain in detail.

  • +1

    how much equity can you release by refinancing w this? was told w st.george they can only give 50k above current loan - thinking perhaps to buy second property in 6m time :)

    • +1

      Westpac approx $100k with no evidence. We have other lenders that do unlimited cash out, PM me.

  • What's the minimum loan to get the cashback?

  • Likely to see a drop in interest rates by April 2020.
    I would be careful fixing at this stage of the game.

    • I think we’ll start to see the rates passed onto customers bottom out. Margins getting squeezed

    • Philip Lowe RBA Governor said this week cutting rates is the last resort and he will try to delay cutting for as long as possible to prevent property price rises.

  • +3

    Gotta compliment the OP for quick and comprehensive answers to every question put to him. Well done!

    No I am not associated.

  • +2

    Would love to take a loan from CBA to NAB

    Can you do the same deal for NAB

    • NAB rates have gone up quite alot since they announced their promo, so if you have a larger loan size, the lower rate is worth more to you than a one off rebate.

  • -1

    Damn, am stuck on a 3.94% fixed with NAB till 20/3/21. Would break fees make this a waste of time. Fixed is 2 x $112k……

    • Call NAB and get a break cost quote first

  • Refinance $3000 cashback can you share a link or poster? Thanks
    From their website I see $2000.

    • It's a below the line offer meaning they do not provide it in writing. But it is a widely known available offer ending this month 29 Feb 2020. We are wasting everyone's time including ours if we are making this up.

      • Thanks for the information. Did not say you made it up. Take it easy.

  • I'm currently paying 5.39% investor rate with ANZ :-( but my mortgage is far less than 250 so wouldn't get the cash back :-((

    ANZ won't give me a better rate either. I used the script in the Barefoot Investor book and no luck apart from them offering me a slightly lower fixed rate.

    • +2

      Say what! Why you paying double the going rate? Sounds highly irregular. Especially for someone who claims to be a follower of the BFI.

      • +1

        Call the Retensions Team and ask to match a competitor offer. If they don't, PM me.

        • Thanks, OzzyBuy :-)

      • I've had my morty with them for at least 15 years and never missed a payment.

  • Does this offer apply to business or trust ? Thanks.

    • Depends, but can be if security property is residential.

  • If my current loan is <250, eg 235 with plenty of equity avail, would the new loan be 250 with 15 avail to redraw or something along those lines?

  • +1

    sent email 2 months ago..never heard back..

    • Apologies if we missed your email, we have received and replied to a lot of emails and may have missed yours. Can you pls pm me with your email and i will look it up. If it’s urgent or you have not heard back pls call us 029698 7186 or 0422354868.

  • I just refinanced with Westpac (still in the final legs of it) and I think I was given a 3.58% investor loan. This seems far lower.

  • -1

    I don't see anyway of this deal in Westpac, can you provide a link stating this rate?
    Lowest I can see with new home loan owner occupy variable with Premium package at 3.44% (UPTO 70% LVR),

    I strongly believe this is to promote and attain customers for the broker.

    • Hi, are you a broker? If you are just googling the Westpac site it won’t have it as it’s for the general public. Brokers generally get lower rates and a below the line offer is even lower. I will send you the pricing we have.

  • Oh I get it, so its through a broker deal. Still makes no sense that Westpac was not able to refinance my loan to being as competitive as i can get through a broker.

    • You still get the same loan with Westpac under the same loan contract directly with Westpac by using a broker. Brokers generally can get lower rates because we send the banks more business than the average customer walking into a branch and can negotiate on your behalf, plus help you cover costs by giving you a rebate, and it's a free service. Send me a PM and I will help you get a lower rate at Westpac.

  • Hi there, how does bundle rebate work; is this a cash rebate paid upfront or different?

    • The Bundle Rebate is paid in 2 instalments, 50% at 2 months and 50% at 24 months after settlement per our Credit guide and in accordance with Lender’s clawback policy up to 24 months. For background, we are able to provide a rebate to the customer from the the commission that lenders pay us. Lenders claw back our commission up to 24 months after settlement, so that if a customer refinances/sells/discharges and our commission is clawed back, if we have already paid out rebate, not only are we doing the work for free, we suffer a loss of the rebate amount out of our own pocket. We present a signed legally binding agreement outlining these T&C's confirming our obligation to pay you the rebates, as well as the customer's obligations to return the rebate to us should a clawback event occur. Importantly, this only relates to return of our rebate given to you, we do not charge a fee for lost commission. But even if you must refinance and leave, as long as you stick with me and I help you do it, you can keep the rebate (as the new bank commission would replace the clawback). Thank you for your understanding.

  • hi OP, just wondering if you're working for westpac?

    also how long this deal will be running for?

    cheers

    • We are brokers, so can offer products of all the lenders on our panel. The below the line offer special 2.99% rate finishes end of the month 29 Feb so hurry!

      • Hello, can you PM as I am looking to refi.

        Thanks

  • Regarding the broker rebate. Bundle Home Loans gives a rebate of 0.3% of loan size (net at drawdown)
    What do you mean by net at drawdown?
    Is it based on loan size? Any impact if I have fund in offset account?

    • yes net of offset. ie calc based on net balance owing

  • Rba rate cut by .25 followed by westpac n cba.. any updated rates on these posts?

    • Yes passed on in full today by big4

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