Refinance option / should I refinance?

t0087669 on 25/06/2020 - 14:37

Hey guys just wanting to ask if you guys will refinance in my situation
Current mortgage:
380k
Bank of Sydney
100% offset
2.82% variable rate
No annual fees

I called Bank of Sydney for possibly give me a better rate, I was told that someone will call me back but it’s been a week I’ve heard nothing.

Any bank with offset but better rates, I prefer something with no fees but not sure that is absolute beneficial. I’m worried about the fees I need to pay BoS for leaving them I need to check how much is that

Thanks

Financial

Comments

  • sweefu on 25/06/2020 - 15:52

    Broker here.

    The best variable interest rates i'm seeing with banks is low—mid 2.7s with offset.

    Given there will be discharge and mortgage registration costs, the benefit for the first year could be minimal.

  • pmdg777 on 25/06/2020 - 17:36

    Above 1.99 and ur getting ripped bro

  • DingoBilly on 25/06/2020 - 17:46

    You didn't mention if this is an investment or PPOR property which would affect how much you could save.

    If PPOR you could likely get a lower rate - if you could refinance with some sort of cash in hand scheme that would be ideal and that would almost certainly be worth it.

    If investment you probably won't find much better rates.

    Also depends on how much money you have in offset - it may be worth dropping that entirely if you only have say $10,000 in there vs. a 0.1% or more drop in interest rate.

    • t0087669 on 25/06/2020 - 19:31

      it is PPOR, I have about 95k in offset. Do you know any cash rebate offer going around?

  • sahh on 25/06/2020 - 18:41

    There were a couple of banks that were doing cash rebates when you refinance, so factor that in to offset on costs. The costs for my recent refinance was:
    - $350 mortgage exit fee,
    - $144 de registration cost for old mortgage,
    - $144 registration cost for new mortgage and
    - $100 loan processing fee for new bank.

    • t0087669 on 25/06/2020 - 19:30

      May I ask what is the bank offer you got when you refinance?

      • sahh on 25/06/2020 - 21:01

        St George cash rebate, I think the offer is $2k now

  • Kinko82 on 04/07/2020 - 18:10

    Depends on how important offset is to you. You can use the redraw feature of a loan and get lower rates such as the st george example. They're doing 2.64 variable on their basic product without any ongoing fees. As long as your LVR is 80% and providing a 2k rebate.

    Or you can look at teachers mutual bank whose offering 2.19 2 or 3 year fix rate with offset account and no annual fee. Upfront fee is a bit dear of 600 app fee.

  • financialminimalism on 11/07/2020 - 11:57

    TicToc 2.39% variable
    UBank 2.49% variable
    BOM 2.59% variable
    Do you absolutely need offset?
    If you want to save money I’d refinance, you’re paying way to much.
    Just google…

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