How Often Can You Transfer Home Loans or Refinance?

Gros21 on 24/03/2022 - 12:44
Last edited 28/03/2022 - 15:19 by 2 other users

I have two properties one with RAM investment one with NAB PPOR.

I've just transferred to RAMS loan to NAB.

However I'm thinking of increasing that loan to 80% LVR and put extra cash into ETF's while reducing my tax as interest is tax deductable. But long as my returns are over my interest rate lets say 3% I'm ahead.

Yes I could get an investment loan which I'm also considering.

With the bonuses for refinancing just wondering how often is to often to play this card?

Rams property was purchased in 2008
NAB was purchased in 2018

Financial Home Loan Investment Loan NAB Rams

Comments

  • timothy2 on 24/03/2022 - 13:31
    +6

    I tried to refinance three times within a 6 month period. First two times was no worries, 3rd time I was knocked back due to being ‘high risk’. Hopefully that helps somewhat.

    • El-Rhi on 24/03/2022 - 16:36

      Who was the lender that knocked you back?

      • timothy2 on 25/03/2022 - 11:22

        Tic Toc

  • Choc83 on 24/03/2022 - 15:02

    I do it once a year, mainly because they want to see several months of repayment history, which becomes messy if the gap is too small

  • Gros21 on 24/03/2022 - 16:09

    Yea I'll wait 6 months maybee a year or so. According to the Calcs I have 110-120k I can access and still be at 80% lvr

  • rektrading on 24/03/2022 - 16:39

    I have two properties one with RAM investment one with NAB PPOR.
    However I'm thinking of increasing that loan to 80% LVR and put extra cash into ETF's while reducing my tax as interest is tax deductable. But long as my returns are over my interest rate lets say 3% I'm ahead.

    This sounds like overleveraging.

    A global deleveraging event can't come soon enough.

    • OzyRad on 24/03/2022 - 17:00
      +2

      Sounds like tax fraud. You can not withdraw against a deductible loan and claim the interest as a tax deduction.

      • Quantumcat on 25/03/2022 - 10:01
        +1

        If the loan is for the purposes of investing then they can. It doesn't matter what security it has

        • Aureus on 26/03/2022 - 15:53
          +1

          OzyRad is saying you can't have a deductible loan (investment) and then use the money for investments and claim that as a deduction. You would be effectively claiming a deduction twice.

          Although OP is looking to do the debt recycling on the PPOR, which is of course fine.

      • fredblogs on 27/03/2022 - 14:39

        Right, OP should have used offset

  • OzyRad on 24/03/2022 - 17:06

    Well, you can. Just don't get caught.

  • ozbargainerlife1 on 27/03/2022 - 12:17
    Merged from Refinance Feedback and Experiences - Maximum Times You Can Refinance?

    Hey Guys

    A few months back my fixed-term expired and I refinanced to HSBC (for cashback and to be on a variable rate). I have now been 3 months with HSBC and now I am thinking to refinance to St George to get the $4k cashback and then plan to refinance again in 3 months' time.

    How many times have you refinanced in a year? is there a limit on the number of refinances and have you ever been knocked back and how has that impacted future refinance or loan or credit card applications? What's your refinance strategy?

    I know St Geroge's rate is higher but I know if I leave St George in 3 months' time I will be in a better position, so let's not worry about the rate and repayments.

    Thanks guys looking forward to hearing you all

    • elgrande on 27/03/2022 - 12:19
      +1

      I refinance once per month. I ran out of banks after while so am now cycling through loan sharks.

      The cashback is not as high, but I do it for the thrill.

    • Tleyx on 27/03/2022 - 22:33

      I have been doing once a year.

      I think that's safe risk

    • footyboy on 28/03/2022 - 10:26

      Broker here. You can apply for refinance as often as you want to.

      That said, with multiple enquiries you'll run the risk of being assessed as a promotion chaser, and eventually you'll start getting declines.

      Seen this happen many, many times.

      Also, had a client come to me this week who had been declined when trying to buy a second property, as he had a lot of enquiries for his home loan, so it can also affect bigger picture plans too.

      Cashbacks are great, just don't take the p*ss and you'll be fine.

  • El-Rhi on 28/03/2022 - 18:36

    Cashbacks are great, just don't take the p*ss and you'll be fine.

    What number would that be?

    • footyboy on 30/03/2022 - 08:54

      You know as well as anyone there's no number I can give for that.

      • El-Rhi on 30/03/2022 - 10:50

        True, although I think there are many who are taking the p*ss and who are very successful at doing so.

        Most lenders don’t really care about the number of enquires anymore, with repayment history now available.

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