Talk to your bank

[xelasnave]

I dont deal with them but if I were in debt and presented as a good proposition to the bank...as having secure income and good equity (and that has to do with your confidence of how you got to where you got if you see what I mean)...I would demand a better rate as reliable borrowers must now be hot property...in fact the conditions may enable bargaining on other stuff but practice first with the bank maybe...
alex

[TrevorW]

Trust me you can't negiotiate interest rates with banks they are not interested, if they did it for one they need to do it for all and would cost them. They know that most people will accept a 1/4-1/2 percent interest rate difference because it's too difficult and sometimes costly to switch mortgages from one bank to another.

[Ian Robinson]

I bet credit card rates will NOT go down ANYTIME soon.

As I recall the Mastercard rate went up the day before 1% prime rate reduction and no corresponding rate reduction has been passed on.

They are pretty quick to pass on prime rate increases , generally very next statement.

Considering how many people have credit cards and some lots on them and lots of them, this behaviour is nothing short of robbery.

[Ian Robinson]

Originally Posted by TrevorW

Trust me you can't negiotiate interest rates with banks they are not interested, if they did it for one they need to do it for all and would cost them. They know that most people will accept a 1/4-1/2 percent interest rate difference because it's too difficult and sometimes costly to switch mortgages from one bank to another.

I am very glad I paid out the remaining principle on my home mortgage in 2000 and so no longer have to worry about that kind of thing. My wife and I were both 43 yo then.

Never DINKAMs or DIWKAMs either , it can be done on one income and a stay at home spouse.

Believe me, it makes a huge difference to your outlook and sence of security to own 100% your home and not have a mortgage hanging over your head. Nest decision and investment I ever made was to ignore the financial planning ratbags' advices and go with my own common sense on what to do with a big chunk of my Onesteel closure separation cheque. (No golden handshake for me .... wasn't at Onesteel long enough - only 10 years that time round.)

I would say to anyone who has mortgage with a bank go over to a building society , the Greater Newcastle looked after us very well , even allowed us to reduce our repayments for 5 years when I was retrenched in 1982 and returned to univerrsity to retrain as an engineer - all we needed to do was ask to talk with the local manager and explain what had happened and what we hoped to do , he listened , was very simpathetic , made call to his overmanager and said "OK that'll be fine and good luck" and even asked us to come and see him if we needed more help at anytime ... now is that service and or not .... bet we'd been out on the street quick smart if we'd have been in a bank mortgage and could no longer afford our mortgage repayment.

[xelasnave]

Never a borrorer or lender be....

Buy acres and gold to bury therein..

Banks should not be able to forclose on loans they should not have made...loans should not be on sold...and when there was a local bank manager he helped so much guiding folk... anyways I may ask for a credit card so I can refuse it as the interest is too high...

alex

[mick pinner]

the problem is people do not know what they are entitled to when it comes to home loans and they do not ask. my interest rate is 1.25 below the standard rate because l read the fine print. with my bank you are entitled to a .75 rate reduction just because you earn over 50K per year. you need to ask.

[Ian Robinson]

Originally Posted by mick pinner

the problem is people do not know what they are entitled to when it comes to home loans and they do not ask. my interest rate is 1.25 below the standard rate because l read the fine print. with my bank you are entitled to a .75 rate reduction just because you earn over 50K per year. you need to ask.

Really .... which one is that ?

[Ian Robinson]

Originally Posted by xelasnave

Never a borrorer or lender be....

Buy acres and gold to bury therein..

Banks should not be able to forclose on loans they should not have made...loans should not be on sold...and when there was a local bank manager he helped so much guiding folk... anyways I may ask for a credit card so I can refuse it as the interest is too high...

alex

Got two credit cards , and one debit card. I use the debit card every day , no fees on transactions , but you get charged like a wounded bull for EFPOS , and I can't spend what I don't have in the account.
Never use the credit cards except for REAL ACTUAL EMERGENCIES that must be paid for immediately ONLY IF I CANT AVOID IT.
The credit cards sit at home and never go anywhere with me unless for emergencies.
Wife doesn't have a credit card - doesn't need one.

I buy NOTHING NOW on the never never or on credit and have not had need of loan since 2000.
If I can't afford to pay cash for something we want - I don't buy it.

I also have a policy of carrying not more than $20 cash on me , just enough to pay for a bit petrol , or a drink or something to eat , or some bait and that's all. Anyone who ever mugs me is going to be disappointed. (might give me money instead ... )

[TrevorW]

I had my mortgage really low them my wife got MS so she couldn't work anymore and we've still got two adult teens at home so the mortgage grew again. I'd be interested in what bank gives a cheaper interest rate because you earn more ????

[mick pinner]

they are called professional rates. go to your bank and ask, building societies do them as well. the theory is the more you make, the higher your borrowings can be so they can do a better deal on rates. to be able to borrow lets say 400K at an average interest rate over 20 years of 10 percent is brilliant, equity grows and your building an asset.

[Jen]

Originally Posted by Ian Robinson

Anyone who ever mugs me is going to be disappointed. (might give me money instead ... )

[TrevorW]

I asked my bank about a professional rate and they said they don't do it

[mick pinner]

your with the wrong bank then

[mick pinner]

it's normally people that over commit that complain about the banks. there is competition between banks and you need to use that to your advantage. l have had a mortgage on and off since l was 20 y.o, and because of making sure l was able to meet commitments l can now ring my bank and borrow pretty much any amount of money l need, that's security in my book. you need to make the banks work for you.

[TrevorW]

I'm with Members Equity their current variable rate is around 8% and is due to drop again

[mick pinner]

good time to be in debt really. if you need to be of course.

[TrevorW]

I guess the reason they don't give professional rates is that their variable rate is usally lower than the banks anyhow and the account is totally fee free

[mick pinner]

l would say your right Trevor.

[Ian Robinson]

Originally Posted by mick pinner

good time to be in debt really. if you need to be of course.

I lived through the period when home mortgage rates hit near 18% , they can go up just as fast as they are currently going down now, believe me on that as I saw it happen and experienced it.

The RBA's panic will subside eventually and then watch out when they go back into ANTI-INFLATION MODE , it will not be a pretty sight and a lot people who think they are getting cheap money on debt now will be in serious brown smelly stuff up to their collective eyeballs. Mind you any remaining cashed up (wealthy) superannuants and people with lots of liquid assets who are debt free will do very nicely then (my granddad did last time).

[TrevorW]

Ian in reflection even when the rates were running around 18% and inflation was rampant I was getting 15% annual wage increases so it evened itself out. IMO I doubt whether inflation will be allowed to get that bad again.