Study tackles rate negotiation with the big four

by Miklos Bolza21 Oct 2016
Financial comparison site Mozo has completed its annual mystery shop to see how willing the big four banks are to negotiate rates with a different borrower types.
Acting as a first home buyer, a refinancer and an investor, Mozo’s property expert Steve Jovcevski approached the market’s major players to see how much he could shave off the banks’ official rates.
The results give brokers a good idea of the room available to move while trying to find the best deals for clients.
While ANZ was the most generous overall, Jovcevski found the banks were generally more willing to lower rates if he approached them as an investor. The full table of results can be seen below:
Bank Borrower type SVR Mystery shop rate Total discount
ANZ First home buyer 5.25% 4.05% 1.20%
Refinancer 5.25% 3.95% 1.30%
Investor 5.52% 4.07% 1.45%
CBA First home buyer 5.22% 4.02% 1.20%
Refinancer 5.22% 4.02% 1.20%
Investor 5.49% 4.40% 1.09%
NAB First home buyer 5.25% 4.10% 1.15%
Refinancer 5.25% 4.02% 1.23%
Investor 5.40% 4.07% 1.33%
Westpac First home buyer 5.29% 4.34% 0.95%
Refinancer 5.29% 4.31% 0.98%
Investor 5.56% 4.25% 1.21%
“Three out of four major banks reserved their largest discounts for investors. This is a big difference from last year’s mystery shop when no additional discounts were offered to investors as the big four scaled back their investor loan books in a bid to meet APRA regulations,” Jovcevski told Australian Broker.
With investors able to haggle up to 1.45% off the standard variable rates, this showed the big four banks are now no longer reigning in their investor lending.
Other types of lenders are not left in the dark here however, with Jovcevski also being offered lower rates as a first home buyer or refinancer.
“Increasing competition in the home loan space particularly from non-bank lenders have prompted the banks to offer generous discounts of up to 1.3% for owner occupiers as well as other perks like frequent flyer points,” he said.


  • by Jaqui 21/10/2016 10:04:30 AM

    As you have shown in your own table, the only reason banks are giving a higher discount to Investors is the SVR for investors is higher as well so the higher discount still brings the rate down to a reasonable rate.

  • by Ken - Customers First Mortgages & Insurance 19/02/2018 1:20:07 PM

    Mozo have not tried to hard. I regularly get 1.35% discount in all categories for loans over half million and sometimes 1.45% for combined loans over one million