Discounts on Floating Rate; what is a good deal?

[buxlo122]

Hi Guys,

My ASB loan is rolling over. I had a .5% discount on my floating rate for the last couple of years (New Lending).

They have emailed me saying that my loan discount is expiring and it will revert to normal rates.

I have asked them what discount they could provide me and the have come back with a .4% discount.


My question to the forum is what is a good discount on floating rates, what have you guys been able to negotiate?

NB: My bank is ASB, LVR of 75%.

[Rosco]

I get 0.75% with ANZ and Westpac I think. Both of the floating rate.

You also need to consider what discount will you get of say the 6 months or 1 year rate, and will that rate be cheaper than your floating option?

Ross

[mrsaneperson]

I get 0.75% with ANZ and Westpac I think. Both of the floating rate.

You also need to consider what discount will you get of say the 6 months or 1 year rate, and will that rate be cheaper than your floating option?

Ross

Thats the best discount i've heard of. Im getting 0.65% off my floating with Kiwibank

[buxlo122]

I get 0.75% with ANZ and Westpac I think. Both of the floating rate.

You also need to consider what discount will you get of say the 6 months or 1 year rate, and will that rate be cheaper than your floating option?

Ross

That's pretty good Rosco do you have a low LVR to get that discount?

[Rosco]

Our LVR isn't amazing with ANZ.

We get an NZICA discount which is the 0.75%, but I would have thought that a property investor with good security and income would get the same.

Ross

[Wayne]

I don't and now I feel shit!

[mrsaneperson]

We should all now join a cartel and demand 0.75% discount from the bank. Unity in numbers people.

[Maccachic]

No harm asking

[buxlo122]

We should all now join a cartel and demand 0.75% discount from the bank. Unity in numbers people.

That is what I have done. Who is with me.

[north shore]

Hi, does anyone have a westpac choices everyday floating mortgage? Are you able to tell me what % it just went up please.
I have one where I got 1% discount, which seems to of shrunk to .5% so trying to figure out how that has happened before I ring them.When I got the discount the rate was listed at 6.24%, now seem to be 6%.
Thanks

[Rosco]

Hi North Shore,

For some reason, one of the Westpac floating loans was always really high and was 6.24% when everyone else was 5.75%.

We were getting 5% floating on Westpac, and I'm guessing this has gone up to 5.25% but I haven't noticed the letter.

Ross

[Craig Pope Mortgages]

Hi all. Just remember to check the carded rate when comparing discounts. Westpac has dropped their carded floating rate so hence the discount margin could also drop.
For example, Westpac's floating rate used to be 6.24 and you could fairly easily get a 1% discount. Whilst this sounds a big discount, the 1% discount was coming off a carded floating rate that was .50% higher than elsewhere. So you need to drill a down a little closer when comparing. So start by looking at the carded rate (ie the starting point) as they do vary from bank to bank, then deduct the discount and see how it compares.
Remember your LVR and loan size also is a factor. If you only have a small amount on floating, then dont get too fussed on floating discount on a small loan as long as you are getting sharp rates elsewhere on fixed rates.
If you are not a chartered accountant member, then you dont qualify for the .75% floating discount as mentioned by Ross, however if your LVR is favourable and overall lending exposure is large then .60% to even 1% discount on floating could be achievable. The other variable being the existing bank may be less aggressive on pricing for an existing customer.

[Wayne]

I think one is for a revolving credit type arrangement and they other is a floating mortgage (rather than fixed).
It confuses my bank manager also and he can't work out why they did it.

[north shore]

Hi Thanks everyone, I am waiting for them to get back to me.
Rosco, the normal westpac floating only went up .10% apparently. You should of got a letter by now.
Our letter was dated the 21 March and came into effect the 11 April, but ours is the everyday choices mortgage.

[orion]

I also get a 0.75% off floating rate from both ANZ and BNZ.

Regards
Graeme