Discounted Mortgage rates

[unhinged]

Is it possible to negoitate interest rates with your lender below that of what they are actually advertising? How much discount will they offer below their advertised rate? Floating or fixed?

We have taken out two new mortgages Kiwibank over the last 9 months, additional to our own home mortgage and are now looking at third, and Kiwibank have never actually offered a discount until I challenged them today, they are getting back to me on Friday and will offer discounts on fixed rates only. We are new Pi's and have never used a broker, yet I understand they will work to get a discount for you.

Interested to know what is available.

[essence]

One used to be able to negotiate with the Banks on the interest rates, but now it's hard to do so.

Doesn't stop you from trying though.

My bank person has told me she used to be able to discount UP TO .5% without central command authorizing it, now she can't even blow her nose without them giving permission.

[brokerman]

Deal by deal. If your Lender is worried they might lose you then they might just play. Not a lot in it nowadays but every little helps!

[spurner]

I called BNZ the other day and got .25% off my floating rate loans.

Mind you BNZ has priced itself .25% above all the other major banks (except Westpac) so in reality I'm no better off than anyone else.

[CSH]

I always ask for a discount. I check out sites like interest.co.nz and see what the other comparable banks are offering and then ask my bank to match - and they always do. You tend to have a bit more leverage if you have high levels of lending - but don't let this stop you from asking.

[Squirrel]

There are a number of packages available out there that you can access through your mortgage broker. For APIA members there is a package with ANZ that offers up to 0.25% of fixed rates. With other lenders there are special packages available for Doctors, Police and NZDF etc all with pretty chunky discounts.

Lenders are getting a bit more competitive because it is a slow market and they do not want to lose market share. I'd have to say though Property Investors generally are not high on the "desirable list"

[Auckland PIA]

We’re really exited about the [email protected] package the Board have recently negotiated with our principal sponsor ANZ and was launched at the last keynote meeting. Before presenting the scheme to members we tried it out ourselves just to make sure it is as good as it sounds and all we can say is we have made some serious savings.

An example is a friend who recently purchased an investment property. Previous to the purchase he wasn’t an APIA member however when he realised the savings he’d make with the [email protected] package i.e. $1,000 ($500 contribution towards fees and 0.2% off the floating rate of a $250,000 mortgage equating to another $500 saving) he very quickly joined APIA and is over the moon as his membership cost $347.50 (including one off joining fee) therefore his net savings with [email protected] is $652.50 and now he has the benefits of his APIA membership as well.

We also tried it out ourselves as we have four loans with ANZ and made significant savings through the interest rate discount.

Along with these savings we have already received positive feedback after Tuesday’s keynote meeting about savings numerous members have gained.

For those people who weren’t at the meeting the basis of the [email protected] package is:

* 0.2% savings off ANZ’s published floating rate
* 0.25% savings off ANZ’s published fixed rates
* For new loans a $500 contribution towards your legal and valuation fees


Please note the above only applies to APIA members with ANZ mortgages that are currently on the floating rate. Also the rates must be negotiated directly with ANZ rather than through your mortgage broker. However if you are considering refinancing or purchasing a new property and your borrowing isn’t too heavily weighted toward ANZ then it is worth considering the [email protected] package due to the savings available.

The contacts for [email protected]:

1) New ANZ loans – contact an ANZ mobile manger and ask for the APIA members [email protected] discount, you will have to show your APIA card. Call 0800 269 4663 (ext 1)

2) Existing ANZ loans – ring 0800 663 444 or email [email protected] once again you’ll have to prove membership to APIA.

Please also feel free to tell any non APIA friends about this deal as with (0.2% off the published floating rates) any existing ANZ mortgage that is currently floating you only need a $175,000 mortgage before you will save the cost of an APIA membership and any new loan you will immediately save money through the $500 contribution towards fees plus the interest rate saving over an above.


Andrew Bruce
Vice President

[brokerman]

Things must be pretty quiet out there, getting calls from Lenders asking for business!!

[speights boy]

Interesting.

Yes, I think most people are a LOT more cautious and generally unsure of the economy.

Quite a number have also realised that debt is like a pet....it's not just for xmas.

SB

[Squirrel]

Also the rates must be negotiated directly with ANZ rather than through your mortgage broker.

I think you'll find most good Mortgage Brokers can access the APIA pricing via ANZ and ditto across any other bank packages.

Whilst any package offer is great, you do need to be mindful of putting everything with one bank. The biggest issue I constantly see is trying to release equity on sale of property. Most people forget that you not only have to pass bank servicing when you buy BUT also when you sell. Those sailing close to the wind (or whose business has had a bad year) get rogered on the way out, especially if all your lending is with one lender. If Property Prices fall (not taking a view on that here) anyone with all their lending at one institution (and especially if they have over 70% Loan-to-Value ratio) risks a very scary experience.