Can You Refinance Very Often Just to Get All The Cashbacks?

Mr Bear on 15/08/2023 - 21:58

Hi guys,

Had this thought for a while, wanna have an open discussion with everyone.

Remember there're points of times where many banks are having this war offering $4k cashbacks to get customers refinance to them? I've done it a few times over the last 10 years. I have been wondering, can you do it for a living? like just keep switching and get all the money?! I mean i know there're costs associated like $1000 fee but there're still a lot left to make this sensible.

Assuming i have unlimited time to deal with all the paperworks and I have met all loan criteria. My questions are:
- is there any legal issues?
- will this affect my credit score?
- will (or can) banks ban me or choose not to provide service to me because i'm doing this? or they have to accept me as long as I meet all the criteria?
- do you know any one who has done this?
- is there any downside or anything that makes this not possible/worthwhile?

Regards,

Financial Home Loan

Comments

  • jv on 15/08/2023 - 22:13
    -4

    is are there any legal issues?

    What does the PDS say?

    • MrMcHairyHead on 16/08/2023 - 09:56
      +5

      Did you know it's possible to leave just one comment instead of spamming everybody's posts multiple times with useless bullshit?

      • jv on 16/08/2023 - 09:59
        -2

        spamming everybody's posts

        everybody's ???

  • jv on 15/08/2023 - 22:13
    -7

    will this affect my credit score?

    of course

  • jv on 15/08/2023 - 22:14
    -6

    will (or can) banks ban me

    yep

  • iforgotmysocks on 15/08/2023 - 22:18
    +14

    No legal issues only eagle issues as you will be soaring like one now that you’ve discovered infinite money hack 😎😎😎

  • apu on 15/08/2023 - 23:56

    Check our Whirlpool, there are lots of serial refinancers who chase cash backs.

  • OMGJL on 16/08/2023 - 07:53

    Not an expert, I wonder if processing fee would end up cost more than refinancing Cashback ?

    • impoze on 16/08/2023 - 08:12
      +2

      Fees are around 1k, so you can end up with quite a bit left over depending on the cashback amount

      My last one was with ANZ 4K and got a better rate, no annual fee, just $10 p/m for offset

  • Brick Tamland on 16/08/2023 - 08:17
    +6

    Yes but its a bit late now, most banks have pulled their cash backs

    • impoze on 16/08/2023 - 08:33

      Some are still available and we may see them come back with prices increasing again and the rates looking to stay on hold another month

    • JIMB0 on 16/08/2023 - 09:59
      +1

      They've wised up just like the supermarkets did with infinite gift card loops.

      • Brick Tamland on 16/08/2023 - 10:14

        Yeah it’s probably a pretty good promotion and works well to get new customers but as a long term promotion it’s open to abuse and probably has no long term benefit.

  • Muzeeb on 16/08/2023 - 09:04

    You must be new here

  • Malik Nasser on 16/08/2023 - 09:20
    +1

    You may be able to get away with it a couple of times, but after that the banks will likely reject your application, as they will see you are working the system, and not someone they can take advantage of.

    • Gdsamp on 16/08/2023 - 12:19

      yea it's important for society that they post record profits yoy

      My superannuation balance is doing very well as a result

      • JIMB0 on 16/08/2023 - 15:30
        +1

        It's a wonderful time to be a shareholder.

  • cheekymonkey on 16/08/2023 - 09:36
    +3

    my understanding- and also would love to confirm it- is that it's not illegal at all, the credit score is not such a big deal, but banks could start refusing applications if they see that's your hobby. especially, at a time when these type of offers are limited. They may become more selective. And then an increased number of rejections on your file, may be something that is not ideal.

    But if you have private health, than that is something which is ripe for churching. Obviously much smaller gains though

  • azero on 16/08/2023 - 12:15
    +7

    2 times with 6 month gaps, westpac -> anz -> westpac - banks didn't seem to care. My credit score did come down by about 50. Reason on the credit file said it was due to the number of enquiries.

    Unless you are on the margin of your rating, it won't have a big effect on your credit rating.

  • burningrage on 16/08/2023 - 14:50
    +1
    • is there any legal issues? No.
    • will this affect my credit score? Yes because of # of enquiries being made and movements in entries. This will recover as the time goes.
    • will (or can) banks ban me or choose not to provide service to me because i'm doing this? or they have to accept me as long as I meet all the criteria? Never been banned but not surprised if they do although that would be hypocritical of them.
    • do you know any one who has done this? I did. BoQ -> HSBC $3.3k -> BoM $4k. Will stay there for 2 years before thinking of moving back to HSBC for their $3.3k lol if it's still there.
    • is there any downside or anything that makes this not possible/worthwhile? After they introduced their BS Responsible Lending code, I thought doing this is a worthwhile exercise since it makes use of my credit score that they introduced with Responsible Lending. Probably helped with my year on year net interest expenses for 1 year at least and allowing me to saving aggressively.

    However, the financial scrutiny might be not every's cup of tea which makes it not worthwhile. The amount of paperwork exercises (like posing yourself for ID check and get it uploaded 100x because the system couldn't read my face) will drive you nuts.

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