Haggling For Interest Rates

29 Sep

For something like three months now, National Australia Bank have been dicking us around while we try to refinance the investment property mortgage. The people we’ve talked to have seemed fairly competent, and then when it’s time to get stuff done they just fall apart. We had all the documents they needed at the very first meeting; I don’t understand why this is so difficult for them.

But anyway, back when we first started this whole process, the interest rate they offered us was 6.92% with the Choice Package. I knew that Cat has a better interest rate (6.82%) because she borrowed more money. So I told James to ask for that, but it turned out that what he actually asked for was something a lot lower, like 6.5%.

James: I thought that she would meet me in the middle – like haggling.

But anyway, the NAB mortgage lady went to her boss, and initially we were all excited – including Cat, who said that if James managed to get a lower interest rate than her she was going to renegotiate her loan. I saw her and James talking about it on gmail, and it made me laugh because this is what James said to Cat:

(I actually had to re-draw that because I was initially looking at it going “hmm something doesn’t seem right”, and then I realised it was because I’d drawn stick figure James without clothes. Now he has a grey t-shirt and some sweet hammer pants)

But anyway, James sent them proof of Cat’s interest rate, and eventually they said that although they couldn’t lower our interest rate any more (which I am somewhat skeptical of, but it wasn’t worth the extra hassle), although they offered to waive the Choice Package annual fee for the first year. Just changing the loan over to NAB will save about $200 a month, so anything on top of that was a bonus.

But anyway, that’s kind of where we are right now, just twiddling our thumbs waiting for NAB to get back to us.

6 Responses to “Haggling For Interest Rates”

  1. polittacking September 29, 2011 at 11:25 am #

    thats a really good interest rate if you can get it

    • pamperedhousewife September 29, 2011 at 11:30 am #

      The 6.92% one? It comes with an annual fee, which makes it slightly crapper, but it still works out better overall.

  2. polittacking September 29, 2011 at 11:34 am #

    i meant 6.82, 6.92 is still good though

    • pamperedhousewife September 29, 2011 at 11:36 am #

      Yeah, we were very jealous of Cat’s interest rate. They wouldn’t offer us that rate though, because we weren’t borrowing enough money. =(

      • Cat October 4, 2011 at 5:48 pm #

        The annual fee is a bit of a pain though. At least ONE of us will be a winner though 😛

      • pamperedhousewife October 4, 2011 at 5:50 pm #

        Ours got waived for the first year chumpette! And is tax deductible for future years.

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