Westpac discounts mortgages for valued customers
By
BN
|
21/01/2010 12:00:00 AM
|
8
comments
In what appears to be damage control, Westpac is discounting .20% off select customers' mortgages.
According to the AFR, customers with large loans who complain about the rate rise receive .20% off their mortgage rate for three months, in addition to the .70% they receive for the pro pack discount. The discounts take the rate to 5.86%.
But the bank denies the move is an attempt to quell customer backlash to its surprise .45% rate rise in December.
"Our mortgage flows remain strong and customer attrition remains around normal levels," Westpac spokesman David Lording said.
"If people are getting discounts it's because they have a lot of business with us - it's a relationship thing. We want to win all our customers' business and have a relationship at a range of levels."
Despite Westpac assurances that business has not been affected by the rate rise, Aussie Home Loans John Symond reported that there's been a 15% decrease in loan applications for Westpac - the only lender to drop in new loan volumes since the December rate movement.
Related stories:
Rate hikes 'hard to justify': RBA - The Reserve Bank of Australia has challenged bank rate hikes by pointing out that profits from lending have returned to pre-crisis levels.
Swan adamant that Westpac got it wrong - Federal treasurer Wayne Swan has refused to concede that Westpac had any justification for raising its interest rates way above the RBA increase.
Latest Comments
Total:
8
comment(s)
Louis on
22 Jan 2010 01:18 PM
Just rang Westpac and got 0.2% discount on my loan for 2 months - on the spot. 2 days to process. Easy!
Broker on
22 Jan 2010 02:09 PM
Let''s all hope the 15% drop in business is jut the beginning, How on earth can a Broker justify using them, when their is no reason to?
anon on
10 Nov 2010 04:37 PM
I negoitiated a 0.9% discount over the life of the loan. You just have to push them and say you are leaving to the NAB !!!
Banker on
10 Nov 2010 06:49 PM
The writer of this article needs to redo their math.
WestPack Bank is 7.51% Standard Variable less 0.7% and another 0.2% = 6.61% (still more than NAB).
Sorry. But the article is wrong.
KT on
15 Nov 2010 08:01 PM
Hey Banker, Which bank do you work for?
Your lack of attention to detail typifies the type of shoddy service you can expect when loan applicants apply for loans directly at a bank branch (as opposed to a mortgage broker who actually are in a position to compare loan products amongst a portfolio of lenders).
The author of this article wrote this articl in January 2010 when SVR''s were much lower than today''s rates.
Banker on
17 Nov 2010 01:26 PM
KT
That makes sense. At least your post and mine confirm for any current readers that didn’t notice the date. Relevant considering it is coming up on the front page on 17/11/10 when rates are a huge topic.
Big assumption regarding bankers and brokers. I think there are plenty of dodgy operators on both side. Unless you believe that a person that leaves a bank and becomes a broker suddenly acquires an increased level of attention to detail?
Or that someone that works as a broker without ever working in a bank, by default has a higher level of attention to detail?
Confirms my theory that people that wear pointed shoes are more intelligent than people with rounded shoes... You must be pretty smart!
Spinner on
23 Nov 2010 10:32 PM
Banker - When you go from banker to broker you have more tools in the toolbox.
Dave on
24 Nov 2010 10:44 AM
So the bank versus broker versus banker argument still rages on. No winners in that scrap but at least it gives the people with nothing to do something to cling too.