At Smartmove we complete reviews on our clients existing lending with their existing bank to make sure if the banks appetite to provide better rates opens up, our clients continue to receive the benefit of a low competitive rate despite their existing bank wanting the rate to creep up when compared with their “new customer” rates.
Through these reviews, I noticed a pattern with one particular bank which would end up being a two-stage process. First, I would request that the bank meet the marketplace rates for the client’s loan. The bank would then give me an offer I knew wasn’t their best. Second, I would then suggest to the bank we were leaving in order to meet the market.
Very quickly the bank would then call the client to make an offer that was materially lower than what they offered in the first stage. Additionally, offering cash rebates to retain the business of the client also not offered initially.
For example, this happened to one my clients whose interest costs reduced by $3,800 p.a and they received a $4,000 cash rebate.
Please give me a call or send me an email if the cost of your loan is not at the market.
Written by Tom Morison