Home Loan Restructuring - Can It Affect My Credit Score?

Hey guys
Say If i have an apartment with an offset account- worth say 400k and say i have 350k in offset. If i restructure it and reduce the loan to 50k will it be a check on by credit score

If i take 350k out so that i can refinance my loan with another bank to get a cashback deal of 2k- will they see that i took 350k out and likely not give me the refinance deal?

i feel that a lot ofpeople would then just jump from bank to bank ?


  • Most refinances will require statements. If you're redrawing 350k and then refinancing, you will need a good excuse or they could think you're up to something.

    If the loan is 400k and 350k in the offset and you refinance the 400k with another bank and transfer the 350k over to your new offset, thats better. Have a story up your sleeve in case (planning to invest/renovate/buy more property)

    Go direct to the bank if you plan to do this. Banks assess their own applications faster than brokers and brokers will only get paid on the 50k outstanding on your loan when it comes time for commissions… and they may ask you to sign something saying if they get clawbacks (due to refinance within 18-24 months or large deposit into an offset), they will bill you for the clawback.

    • thanks- yeah i would need a good excuse. What if one uses a broker with the bank- like NAB mortgage lender -so they only work for NAB?

      if i restructure the loan with the same bank would it mean a credit check ?/hurt my credit though?

  • From my experience it is fine, we did the same but not with 2 amounts that close.

    We got a new mortgage with better rates and just moved the offset money over. If I take a look at my credit score the offset does not show up (why would it? it is not credit). The offset was moved but the amount that is actually borrowed appears, the offset money not visible anywhere.

    It shows that we had borrowed X (that is the amount without anything in offset) and moved the same X to another bank.

    So you do not need a story and it will not impact your score.

  • +1

    Why even worry about your 'score' it's a bunch of marketing crap. We aren't the USA where it's vital. Each bank has their own criteria, credit scores are rarely used.

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