Home Loan Refinance Cashback Offers

• 

  footyboy on 20/02/2023 - 14:18

  +3

  I'm a broker;

  • revalue home for $400k, use equity to sit $300k in redraw - Yes
  • re-finance with new bank for $400k loan, get $4k cashback, but pay current bank's fee for finalising loan - Yes
  • immediately put everything except $96k in redraw - Yes

  Aidan.

  • 

    Donaldhump on 20/02/2023 - 15:39

    put in offset, redraw has tax implications if ever move house

    • 

      footyboy on 20/02/2023 - 18:42

      @Donaldhump correct 👍

      • 

        cheese-crackers on 20/02/2023 - 20:24

        Not really. For a personal/non investment residence redraw has zero tax implications.

        • 

          Donaldhump on 21/02/2023 - 09:32

          +1

          @cheese-crackers: until the day your now ppor becomes an investment because your life plans changed.

          offset achieves same as redraw with no implications, you dont even need to fill out a form to ask for your money back, or worry about bank taking your redraw. its a line of credit on tap

• 

  cheese-crackers on 20/02/2023 - 15:22

  Redraw doesn't really work like that. If you owe $150k and have 50k available redraw then you can redraw 50k and owe 200k. Redraw is the money you have paid above and beyond the minimum monthly loan repayment, not the difference between the property value and your oustanding loan amount.

  You could potentially refinance for a higher loan amount (250k) - tell the bank you want to renovate or whatever, and once funded drop your leftover cash back into the new loan bringing your balance back to $150k (and creating a redraw balance by doing so).

• 

  Donaldhump on 20/02/2023 - 15:39

  refinance get 250k loan, put surplus straight into offset and forget

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  JimmyBobShortPants on 20/02/2023 - 15:51

  Thanks for thoughts.
  Do I need to do step 1 or can I ask bank # 2 directly for a $250k loan?

  • 

    footyboy on 20/02/2023 - 16:31

    Just skip to part 2. No need for outgoing bank to re-value your home.

    Aidan.

    • 

      JimmyBobShortPants on 20/02/2023 - 16:44

      Thanks!

• 

  FirstWizard on 20/02/2023 - 17:27

  Your LVR is currently quite low; borrowing $250k might change the interest rate bracket — depending on the institution. Maybe also check if the cashback is worth it, if the rate is higher.

  • 

    footyboy on 20/02/2023 - 18:44

    +1

    @FirstWizard rate may be 0.10% higher, however a $4k cashback on a $300k loan equates to a 1.333% discount (1st year)

• 

  JuryWheel on 21/02/2023 - 14:27

  Anyone had experience refinancing with the banks offering $3-4k cashback and can suggest one or two that are turning applications around quickly? I was hoping to make a couple of jumps over the next 60-90 days if the timing and cashbacks allow and had heard that some banks are very slow to get them done…our circumstances should be pretty simple. I'm with ANZ at the moment was was thinking i may switch to St George first and then maybe Suncorp or ANZ if the offers are still running….cheers

• 

  gbnbb10 on 07/07/2023 - 14:38

  After 4July rate change, why doesn't anybody here discuss about IMB Bank who are offering owner occupier 5.49% 2yr fixed, 5.69% variable negotiable (Cashback Payment for loans between $250,000 and $500,000 is $2,000, and Cashback Payment for loans $500,000 and over is $4,000. Borrowers are eligible for one Cashback Payment in a 12-month period) <80% LVR and with loan split option.
  Bendigo Bank also offering 5.47% variable+redaw+offset (with an LVR <= 90.00%), but no cashback with loan split option.