if my loan has more than $250k but when including offset its less than 250k, will i still get cashback?
NAB refinance cashback question
Gerry H on 20/06/2019 - 16:34
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hmm but if thats possible someone can abuse it. they'll have their offset cancel their loan, refinance for $2k and get ~$800 profit (more profit if packages are bought), then do it with another bank etc, all the time not paying a single cent on interest.
good luck trying that on homeloan
this is not churning mobile sims
ok maybe not jump banks but u can at least do it once and not pay any interest lol. they give u 2k for free?
@Gerry H: except that there are costs for refinancing. Mortgage discharge and mortgage registration fees for example.
@loulou1: yea but its not gonna cost $2k? im sure if u buy the packages for 1 year to counter the upfront cost u'll at least have $1k profit? just wanted check, pretty sure banks are far smarter than me and wont allow this type of abuse…
@Gerry H: in QLD you are up for a minimum $187 x 2 for the discharge and registration. Package fees won't stop those as they are government charges.
Existing lender will want a mortgage discharge fee.
The new bank may also require a valuation on the property which would attract a valuation fee. Then there is application fees or package fees. There are probably other costs too.@loulou1: discharge for cba is $350, package for nab is $395 i think? pretty sure package will remove valuation and every other upfront cost. so $1119 cost, $881 profit.
@loulou1: my cba interest is still 3.64 after rba -0.25, i read someone got 3.49 at nab so i will very easily get the same rate at nab, even 3.5-3.6 should be easy. since my rate is so high refinance is definitely a yes for me if all costs are neutralized by cashback.
I’ve done exactly this… it’s possible to churn every few months and make some decent tax free profit
i was browsing for an answer on this and came across this post.
did you manage to get the cashback?
an extension to this would be is it possible to refinance and push ur loan from below 250k to above but then not spend the money?
yes