UPDATED DEAL: MatesRate still has $10 monthly admin fee (sorry for the outdated info earlier) so this deal is not good for loan >$160,000
Check out the MatesRate deal for 100% cashback for your trailing commission (with $5 monthly admin fee)
https://www.ozbargain.com.au/node/215432For loan >$160,000, the other deal will give you much better cashback.
Since ING minimum loan value for this deal is $150K, if you have small loan value, you still can get max loan of 80% LVR, put money in offset account and make repayment of $3000 per month to get maximum rebate from ING
You probably all know that ING got good promotion at the moment for their home loan at 3.99% (4.19% CR) with Offset account. Now you can take this extra step to even reduce the rate further.
ING is having 3.99% Home Loan rate (4.19% CR) for Owner Occupier ONLY.
For investment loan, you may talk to the broker and they may let you know what is the best deal. Always remember to do your own search as well before committing to what the broker said !!!
1. Register or login to your existing PricePal account.
2. Login and search for 1300HomeLoan, enter your details in the form and their broker will call you. Their broker is quite nice and helpful. You can use my link at the bottom for extra bonuses.
You need to install web app (toolbar widget) to activate this bonus. It is very handy and you won't missed out cashback by not using cashback link :) For those who used my referral link but haven't got $20 in your Pricepal account, please download and install their Web app (Chrome) to activate the bonus.
3. You can obtain ING Loan through that broker and they will share 50% of their trailing commission through Pricepal cashback.
Some of you will ask so what is for broker, brokers get 2 commissions:
- One-off commission when you get your loan (It is about 0.6%+ of your loan amount depends on lenders), they won't get it if you don't stay with the lender for at least 6 months so if you switch your loan within 6 months, the lender with take it back. The brokers will keep this commission.
- Ongoing trailing commission with your loan: for ING it is 0.15% for the first 3years then 0.2% after, and Pricepal will give you cashback of 50% of this.
4. You will get cashback on repayment up to $3000 per month from ING, I am still not sure if this is based on your minimum repayment amount or not which means you need to have shorter term to have a higher min monthly repayment. As you can see from the spreadsheet, after ING cashback and Pricepal cashback your true rate is 3.86% and reducing every year ;)
As you can see in the 2nd sheet, with smaller loan amount and shorter term, the effective rate is even lower than 3.86%. I have changed permission and you now can play with it by changing the loan amount and term and even rate!!!
When you change the Loan Amount, you can also change the term so that monthly repayment is $3000 to max out ING cashback
Since ING minimum loan value for this deal is $150K, if you only have a small loan balance, you'd to borrow maximum 80% LVR then put the extra money in offset account. Then you can make $3000 repayment every month to Home Loan account to earn 1% cashback on repayment.
You may not get trailing cashback for the extra loan though because trail cashback is calculated on owing loan balance i.e principle - offset
Cons:
ING is stricter than big bank with your borrowing power, they use 8% as a stress test to work out your borrowing power i.e work out your loan amount as if the interest rate is 8% so you may not be able to borrow as much. But talk to the broker, they will help you out by checking your overtime or extra income to push for a higher borrowing amount.
$199 annual fee, waived for first year which I have included in my spreadsheet.
Pros:
- This comes with an Offset account and 2% PayWave cashback which will save you even more money(as long as you deposit at least $1000 per month to your Everyday account which you will need to use to pay for your home loan anyway).
None of the credit card reward program has cashback rate of 2%. You can use Coles Credit Card for non-PayWave payment with 1% cashback value through Flybuys Dollar ($89 annual fee - they must have dropped it recently, I remembered they jacked it up to $149 before). This card got no Foreign Exchange fee as well
FYI, Offset account is needed for Tax purposes if you want to claim negative gearing later down the track, Redraw will contaminate your home loan account and you can't claim negative gearing.
For new PricePal users, you can sign up using my referral link below. We will both get a $20 Buddy Bonus (so they will double up your cashback reward up to your Buddy Bonus)
http://pricep.al/2wz
How Our Referral Program Works
PricePal will pay you $20 “buddy bonus” cashback for every new member who you refer that joins PricePal and installs the PricePal web app – see “qualified referral” below. You may refer multiple friends and you will earn $20 bonus cashback for each friend. Each dollar of bonus cashback is paid to you for every dollar of cashback you earn. We effectively are matching you dollar for dollar on all the cashback you normally earn! So for example if you refer 1 friend, $20 will be placed in your Unclaimed Bonus total. If you were to be paid $10 cashback, then $10 bonus cashback would be paid to you in addition, and you would have $10 remaining in your Unclaimed Bonus total.
ING is not a big bank.