Mortgage and Credit Card Situation - Need Advice

jlim87 on 27/05/2017 - 14:26

Hi,

I'm currently with NAB for my home loan and after 3 years I'm no longer with them and able to refinance elsewhere. I have two credit cards with them and with at around ~20% interest rate and recently racked up about a $10k debt. I've never done a BT before and now that it's time to refinance, just wondering what I should do for my situation.

1) They seem happy to price match banks like suncorp at 3.88% but I know that several online only home loan places offer around 3.69%. I personally feel more comfortable banking with NAB and it's useful having the online banking portal all show all my personal/business accounts all together. The travel insurance perks with the credit cards are also a plus. So question is, is it generally a silly idea to stick with NAB? Everyone seems to refinance elsewhere other than the big 4.

2) Do i have any bargaining power with my credit card accounts? If I switch banks, I get to balance transfer for 14-24 months at 0% interest. That's a huge savings to me and NAB can't offer any 0% interest obviously. While negotiating my refinancing, do they even care about the credit card situation or is that just another department thing to them? They offered a lower interest rate when I last spoke to the CC dept, I stupidly chose not to accept it because I thought it's somehow tied to my home loan and was afraid of getting locked in or something. I believe that's not the case?

Cheers

Financial

Comments

  • tajid on 27/05/2017 - 14:54

    Do you always pay off your credit cards every month or let them incurring 20% interest?

    This is a good BT CC https://www.ozbargain.com.au/node/301023

    Your home loan can stay with NAB but nothing stops you from BT-ing to other banks.

    • jlim87 on 27/05/2017 - 15:06

      I do pay it off monthly. It's just the last month I had to do a major spend on hospital bills so racked up quite a lot. If I'm able to do a BT and slowly pay it off, that'll be awesome and allow me to use the cash flow for other purposes. I just didn't know if applying for a new CC and doing a BT would sort of affect my refinancing rates in any way.

      • tajid on 27/05/2017 - 15:07
        +1

        I'd suggest refinancing first then apply for BT (if you plan to refinance), as new CC credit limit will be considered when new loan application is assessed.

      • tajid on 27/05/2017 - 15:44

        1) is it generally a silly idea to stick with NAB? Everyone seems to refinance elsewhere other than the big 4.

        If you can get lower home loan rate and don't need to incur much fee from refinancing, move!! The similar perks are available with other cards/home loans too. Big 4 generally have worse rates.

        2) They might care but why would you want to pay any interest on your CC if you can just BT it at 0%??? Any previous offers by their CC dept may still be valid, give them a call and see what they can do for you.

        When you refinance, they will look at how much loan you will have when the new loan settled (i.e. new loan + all the CCs you have - their max credit limits). Therefore preferrably you should refinance first then get a new CC, BT and close the other one.

        Also I'm pm-ing you re Naritas.

        • jlim87 on 27/05/2017 - 16:42

          Thanks for the great advice. I guess the hesitation is whether to stick with a Big4 if they were to price match other home loan rates. E.g. I may get a good fixed rate with them, but suffer a worst variable rate. But again, thats just assumption and not sure if it's even worth all the trouble moving just to save an unknown figure.

          Will be doing as you advice. Refinance first > Apply new CC > BT that over.

          Cheers.

        • tajid on 27/05/2017 - 16:45

          @jlim87:

          Shop around for better rates, consult brokers (they are mostly free). My experience with big 4 (I was with CBA), they tried to price beat but failed to match, other banks' rates were just better.

      • ziaxk87 on 27/05/2017 - 18:28

        if you are thinking of refinancing the home loan only bcuz of credit card balance… rethink any that.
        you can BT and still keep the home loan as is.

        for BT only:

        Citibank they have deals of 0% bt for 24 months..you just have to call and say I saw a deal online or got it in my email..
        there is 49$ fees for first year and 149$ for second year plus they might charge you 2% as BT fees.

        st George : 14 months 0percent
        0fees for first year 59$ for second year

        bankwest 0%for 21 months 59$ fees

        HSBC 0% for 22 months with travel insurance with 99$ fees
        use cardfinder.com.au

  • [Deactivated] on 27/05/2017 - 15:02

    I'd refinance and try pay down that credit card debt with a higher home loan at the same time. sounds like ur trying to save $5 with a better home loan rate but you don't mind wasting $10 on a 20% interest rate credit card.

  • ziaxk87 on 27/05/2017 - 18:31

    for home loans try ANZ with their home loan you will also get credit cards for free which gives you travel insurance and electronic purchase protection (they match sale price if you brought some thing and it goes on sale within 2 months)

Login or Join to leave a comment
Login Join