Best Way to Negotiate New Home Loan Interest Rate with CBA

CustardShot on 11/05/2022 - 22:45

I've had my home loan with CBA since purchasing my home, almost 10 years ago.

Currently on a No Free Variable loan, with redraw at no charge and offsetting the loan, at a rate of 3.07%, presumably going to 3.32% this month.

After previously checking with Athena, and seeing they didn't offer services to my area, I've checked again and they now do. Their variable interest rate is 2.14%. About 35% less interest for me to pay annually.

My current home loan is right on the 100k mark, meaning a saving of 1k per year. To me, not too much, but obviously, I'd take it.

I'd really like to contact CBA to see if they can match the Athena offer, which I assume they won't but ideally, bridge the gap a little.

I've never done this before with them, and I'm not even sure of the correct avenues to do so (phone, email, who to try get in contact with) and then, appropriate ways to go about pushing for a new negotiated rate (asking, threatening to leave, etc).

Hoping to hear some stories on similar action you might have taken.

Cheers

Financial

Related Stores

Commonwealth Bank
Commonwealth Bank

Comments

  • capslock on 11/05/2022 - 23:40
    +10

    I asked CBA, they said no. I then made the effort to refinance to NAB. When NAB tried to book the settlement, CBA called me and offered to match what NAB was offering. I said no.

    • CustardShot on 12/05/2022 - 00:03

      Oh, it had to go that far. That's interesting. Do you remember your first point of contact with CBA? Was it phone, in person, website?

      • tomclancy on 12/05/2022 - 00:19
        +1

        Easiest way is to lodge a notice to discharge form. Find it on their website. That's the form that kicks into gear their retentions team (no one else you can speak to has enough authority to match rates). Be sure that you have on hand a comparable rate from a big 4 bank (potentially tier 2 lender). They won't match Athena or other non-bank lenders. Also make sure the rate is comparable product. They know others rates so you can't lie to them.

        Note, the notice to discharge form isn't committal on you, so no harm in lodging one. It just lets CBA know you're seriously considering moving banks. Any other way you contact them and they won't consider you serious.

        • RocketSwitch on 22/05/2022 - 15:25

          Yeah, they have caught on. They encourage you to download the form LOL, pricks!

  • elgrande on 11/05/2022 - 23:41
    +1

    You would be surprised - they probably won't want to reward your loyalty.

    • CustardShot on 12/05/2022 - 00:03

      Fully expecting it - But I'll give it a shot.

  • andrek on 12/05/2022 - 03:19

    I was with CBA for years, tried to negotiate the rate, but eventually had to refinance with another lender with a MUCH better rate. CBA didn't even call me when I started the process.

    So just refinance and enjoy the savings.

  • Toph Beifong on 12/05/2022 - 08:10
    +1

    Leave the big 4. Too many people bank with them so they won't care if they lose 1 or 2 customers

  • minas01 on 12/05/2022 - 09:02

    Have a look at Macquarie. I'm almost sure their variable rate is currently between 2-2.5%. option to have multiple offset accounts, online banking system is top notch too

  • Keplaffintech on 12/05/2022 - 09:09

    Apply to refinance, and CBA will call you. They probably won't match Athena's rate though.

  • Super Saiyan on 12/05/2022 - 09:24

    Was with CBA, then refinanced with a different bank last year when fixed rates were being offered around 1.8-1.9% + cashback etc etc
    CBA only called at the end when the mortgage accounts were closed with them and offered to match any of the new rates. At that stage is was far too late and I definitely wasn't willing to go through the process of switching back.

    I do miss their app and internet banking experience though, probably the best I've used amongst banks.

  • tio on 12/05/2022 - 09:52

    you do know CBA = Can't Be Arsed yeah?

  • boomramada on 12/05/2022 - 10:00

    Nothing to lose, give it a try, I got some discount on mine with CBA.

    Keep in mind, your only got 100K, doesn't matter you banking with them for 10+ years, more you borrow, chances of negotiate is higher.

  • brendanm on 12/05/2022 - 10:23

    Refinance to someone with a lower rate and cashback. Do this every year or 2. The cashback amount is 4 times what you will save in a year with the lower rates.

  • RocketSwitch on 22/05/2022 - 15:23

    CBA are dogs. They won't match anything until you leave and then they will match. Tell them to go to hell.

Login or Join to leave a comment
Login Join