So I refinanced to a variable rate in January with a nice cashback offer, but am thinking now fixed is the way to go (and probably what I should've done), plus getting another cashback deal would be nice.
However I assume if I do it too quick future banks wouldn't look too nicely upon it, so was wondering what anyone in the know would judge as the minimum 'safe' period to wait between hopping banks?
There are no claw backs? eg. must stay for x months/years otherwise you have to repay $XX ?
Mate just had this happen with St George, took them like 10 months to claw the cash back back though.
Sent him an invoice, he ignored it… he eventually paid it when he worked out not paying it was going to end up as a default on his rating
Banks don’t have any clawbacks….If you went through a broker, they might try and clawback a broker specific cashback or part of the commission they would need to repay the bank
Some banks have conditions in their cash back offers requiring pay back of the cash back amount if you refinance away within a certain period of time
@peterwilliams83: People’s choice credit Union is one example I came across: We reserve the right to seek reimbursement of any cashback amount paid where the refinanced loan is discharged within 90 days of funding/settlement.
@peterwilliams83: Fair enough… I don’t think any of the majors or regionals have anything like that. ANZ, Westpac subsidiaries, BOQ, HSBC, NAB certainty don’t
Check terms of the cash back
As i stated above, mate had St George come after him to repay a cash back when he left within 12 months
Hmm, I am with BankSA which is the same Westpac group, but can't see any details on their site of clawback provisions.
It may have been specific to his offer (the promotion may have had those terms)
Legitimately/legally refinancing a loan is definitely not 'defaulting on a credit agreement' in any way. Your former creditor gets paid out, by your new one.
Am I missing something here? Or have you neglected to include some vital information in your query?
I cannot understand why you think that (legally) refinancing a loan would affect your credit rating in any way.
It’s not related to defaulting, but a credit enquiry going on your file, or a loan being opened and closed in a short period of time. Both of those things don’t have any material impact, so there’s nothing to worry about.
It's not a default I'm worried about, more just how it looks to sign up and abandon a lender in a short time frame as El-Rhi mentions.
I wouldn’t worry about it too much. All home loan lenders care about is making a sale as it helps them meet their monthly sales targets. Most won’t even question why you’re refinancing so soon.
I did 3 refinances in a 12 months period!
Gotta love the cashbacks…