Third-Party
Thanks aussie bargain for the tips. I have clean up my spreadsheet and make this deal even much better !!!
NOTE: Sorry for the wrong info because of an out dated page. Monthly admin fee is $10, but this deal is still the best deal when combine with ING Cashback Home Loan.
For loan amount less than $160,000, please use Pricepal cashback deal for better rate .
https://www.ozbargain.com.au/node/215201At the bottom of the screen, you can select the respective spreadsheet to see the calculation. i.e ING_MatesRate, ING_Pricepal…
1. Contact those brokers at Matesrate to enquire about getting your Home Loan with ING Orange Advantage
http://matesratesmortgages.com.au/mortgage-lenders/mortgage-…
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 will let you know what is the best deal. Always remember to do your own search as well before committing to what the broker said !!!
UPDATE 2: Based on experience from JHoliday in the comment below, since these guys (MatesRate) only get their money from the one-off commission, they are not keen to deal with loan less than $200K. What you can do is borrow more then put in money in the offset account and make $3000 repayment every month to max out ING cashback. Or you can go with 1300HomeLoan deal instead since the cashback won't be much difference for loan up to $200K
2. You can obtain ING Loan through that broker and they will refund you 100% of their trailing commission to your bank account.
The catch is they will deduct admin fee every month before they pay you. So if your monthly trailing commission is less than admin fee then you won't get anymore cashback.
For the first 3 years, the other deal is better if your loan amount is <=$160,000
For the 4th+ year, the other deal is better if your loan amount is <=$120,000
https://www.ozbargain.com.au/node/215201
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 MatesRate will give you cashback 100% of this (minus admin fee).
3. 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 MatesRate cashback your true rate is 3.8% and reducing every year ;)
As you can see in the 2nd sheet, for $300K loan and shorter term, the effective rate is even get to 3.76%
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.
@Underlord: you are correct. Spoke with a different broker and the only amount you get cash back on per conditions in the agreement are those PAYMENTS made toward the MORTGAGE and the cap of $3000 is inclusive of the minimum monthly amount.
on this basis o decided not to proceed.