Looking to refinance my two houses into one bank. has about 700k owed.
My friend is with Heritage Bank and he has a rate of 5.4%.
My best rate is 6.09% with Westpac, I don't know how he got that interest rate…
Just wondering if any bank would price match that?
What’s the lowest variable rate you’ve ever heard of?
1.89%
With the reserve bank rate at 5.25% it's pretty unlikely to get 5.4% anytime soon. Sure they're not on a fixed rate/honeymoon rate/etc?
Banks don't price match and I imagine no one at Westpac would believe "my mate has 5.4%".
Reserve bank is 4.35%.
He confirmed its variable
lol whoops, sorry. Brain fart.
But still, it's a very low rate. Plenty of banks are offering savings interest rates around that. Your best bet is to go ask Heritage Bank for that rate, if they're offering it. Your mate must have sweet talked someone pretty well to get it.
They should be able to price match and beat by 5% otherwise take your business elsewhere
I cannot find any rate near 5.4% on the Heritage website. Would really like to know your friend mortgage broker if he has one?
They won’t match per se when the rate difference is 0.6%. They know it costs you more to refinance over to heritage for example.
Also as others have said - your friends rate is not available to everyone when their site is showing 5.99% for low LVR. I wonder if your friend signed up at 5.49% two rate hikes ago last year and doesn’t realise his current rate has gone up
Unless you see it physically with your own eyes, don't believe it.
Side note - My 200% LVR Investment property has a rate of -20%, so I'm making money off my loan.
Yep. It's easy to have looked a year ago and been like "Oh yeah mate, I'm on 4%, what are you on?" or similar without having rechecked.
How’s that possible?
They won't price match it because you can't actually get it.
You can't just point to a mate and ask a bank if you can have what he's having, you need an actual market offer or quote to point to. Price matching is about stealing business from the bank's competitors, not doing you a favour.
Also, your mate is no longer on a variable rate that low anyhow.
In the last month I went through a broker as CBA would only drop current loan at ~6.8% to 6.42%. The best standard loan (i.e. no offset, awards, etc) broker found was Heritage at 5.99%. Got formal approval, then went to get discharge form from CBA and they offered 5.98% on the spot whilst keeping the benefits of the wealth package…
I understand their games, but it's a waste of everyone's time to go through the hoops to get approval from another bank to only then be offered a better deal from your current, but that is what it seems to take.
it's a waste of everyone's time to go through the hoops to get approval from another bank to only then be offered a better deal from your current, but that is what it seems to take.
In fairness, the smart play is to submit a discharge authority form first off - that way you aren't wasting anyone's time. There's no reason it needs to be lodged after approval
Call your bank and ask for a discharge certificate. My lender matched but I was ready to churn and was really asking for one. But may worth a try even without even applying to refinance. :)
I had 2 loans with Westpac, rang and said Unloan is offering x, can they do any better on my rates, they went away and thought about it and came back saying they can't give me any better rates, so I switched to Unloan. Then I got a few calls from Westpacs retention team asking if they could do anything to keep me, I mentioned wanting a better rate, they went away each time and came back saying it's not possible to give me any lower a rate.
So worth calling them to ask, but don't expect much, if anything (-:
Most brokers will consult with you for free, and can sometimes find good deals, also worth a try.
Thanks :)
Will do this
There is no harm in calling your current bank and asking but overall, homeloan is more complex than utility rates.
There are numerous factors involved such as LVR, expenses to income ratio, credit score for banks to determine how safe of an investment to the bank.
Again, no harm in doing some homework, check comparison rates of various banks then giving your bank a call. Worst case they say no and then it's your call to see if it's worth refinancing.
Edit: oops, was not reading your post right. Try calling westpac as per my above response, if you didn't get the response you want, contact a broker