Good borrowers getting rate discounts
Banks and other lenders are increasingly offering rate discounts to good borrowers. Sheyne Walsh, head of lending at financial planner Centric Wealth, says: “A few months ago the best we could do was a 50 basis points discount off the standard variable rate. Now we have one lender allowing us to offer discounts of as much as 90 basis points on loans up to A$1 million and 100 basis points for loans over A$2 million. Our view is that lenders are being selective with this aggressive pricing – picking their channels, market segments and even geographies. But there is no doubt it is a new level of competition.”
Westpac is offering selected brokers discounts of 80 basis points on loans above $500,000. It also reported that Westpac had increased its mortgage insurance threshold from an 80 to 85 per cent loan to valuation ratio. Westpac is also understood to be offering waivers on home loan establishment fees and annual fees. Commonwealth Bank is promoting discounts of 80 basis points on sandwich boards outside some branches.
Source: Banking Day/The Advisor