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Interest Rate Specials & direct credit of salaries (ANZ & BNZ in particular)

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  • Interest Rate Specials & direct credit of salaries (ANZ & BNZ in particular)

    Hi there,

    Could I ask, what are your experiences when it comes to re-fixing your Home Loan - do the banks really care if you have your salary directly credited or not before deciding whether to give you those Special Rates (as opposed to Carded rates)?

    Will I be able to use "Rental Payments" in lieu of Salary?

    I will have no problem with their other conditions (i.e. 1x credit card with them).

    I will be changing employers in the near future. Interestingly, my new employer is only able to credit salary to one account, as opposed to the current employer whom I have asked to split the salary to both ANZ & BNZ, therefore satisfying both banks.

    If it matters, I have 1 property (investment) with ANZ, and 2 property (1 x investment, 1 x owner-occupied) with BNZ.

    Thanks in advance for your experiences!

  • #2
    There is no need to have salary paid into an account at any particular bank to secure a discount off the stated rate. The bank will of course push you to do so but you can negotiate out of that requirement.

    In your situation it seems that you already have the finance sorted and the rate you're happy with and now you're likely to have to remove salary being paid into one of the two banks... Is that right?

    My bet is that they won't even notice... They will only review if and when you create a credit event (borrow more, buy a new property or sell one) or if you go to them requesting a better rate or to re-fix your rate.

    I never had any salary paid directly into my mortgage providers account and have always secured a discount to the advertised rate. Currently 0.8pts below the standard variable offered by my bank.

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    • #3
      As a student at university, all the banks required me to have 'my income' going into their account to access their student deals and interest-free overdrafts.

      I had my student loan paid into my ASB each Tuesday, and on Wednesday $100 would flow to ANZ, on Thursday ANZ would pay $100 to Westpac, on Friday BNZ got it, on Monday Kiwibank, and Tuesday National Bank, where it would sit until I needed it to pay off my credit card, where I did my actual spending.


      As a home loan borrower you have a lot more power to negotiate than a poor student. You probably don't even need to set up such a contrived structure. But the fact is, it's easy to do if you want to.
      AAT Accounting Services - Property Specialist - [email protected]
      Fixed price fees and quick knowledgeable service for property investors & traders!

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      • #4
        In the current climate banks are looking for reasons to not lend so I would do everything I could to help them tick as many boxes as possible.

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        • #5
          Thank you guys!

          Originally posted by Don't believe the Hype View Post
          In your situation it seems that you already have the finance sorted and the rate you're happy with and now you're likely to have to remove salary being paid into one of the two banks... Is that right?
          That's correct. Currently, I have nothing to worry. Only concern is that around Aug 2017, Home Loan A (investment with BNZ) is due for re-fixing; and in Nov 2017, 25% of Home Loan B (investment with ANZ) is due for re-fixing.

          Of course, an option is to change salary payments to ANZ around mid Aug 2017... continue doing so until late Nov 2017, then revert to BNZ. Do you think that's necessary?

          Anthonyacat - I do have lots of money going in and out through both banks (in fact ANZ receives Rental Payments), but I am just concerned that they wanted the money as SALARY, as opposed to just a usual DIRECT CREDIT.

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          • #6
            Originally posted by newbyvest85 View Post
            Thank you guys!



            That's correct. Currently, I have nothing to worry. Only concern is that around Aug 2017, Home Loan A (investment with BNZ) is due for re-fixing; and in Nov 2017, 25% of Home Loan B (investment with ANZ) is due for re-fixing.

            Of course, an option is to change salary payments to ANZ around mid Aug 2017... continue doing so until late Nov 2017, then revert to BNZ. Do you think that's necessary?
            i think by Aug 17 the banks will have settled back down... At the moment there is a lot of regulatory changes and pressure for the Aus owned bank to return to their parent bank a large chunk of funds meaning the NZ bank needs to get funds from deposits, borrow off shore, get current loans paid back or not extend further borrowing.

            If if current trends (bank behaviour) continues the risk when you go to refit is more likely that they will want some funds paid back rather than a discussion about which bank your salary is paid into.

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