Refinancing question (my first time)

livingroompc on 10/08/2020 - 13:55

Hi fellow ozbargainers.

I have a relatively simple question but im not too sure where to find the answers as the banks wont give me a straight forward answer.

My situation.

Currently have a loan of 800,000

i paid the 20% so i borrowed 640,000

I have a full offset account and it currently has 640,000 in it so im not paying any interest.

My question is..

Can i refinance to another bank so i can gain advantage of their new customer cashbacks?

Some people are telling me i can and some say i cant. Some people say if i transferred the money somewhere else i can? so i just wanted your opinions.

Thanks

Financial

Comments

  • garetz on 10/08/2020 - 14:34
    +2

    If you borrowed 640k, then that is your loan, the original purchase price would be 800k.

    The amount of money you have in your offset has nothing to do with being able to refinance.

    As long as you meet all the conditions and the loan is approved, then yes you can refinance also you are not locked into a fixed rate for 1-2-3 years.

  • psyren89 on 10/08/2020 - 15:02
    +1

    Just make sure your cashbacks will cover the fees associated with the switch.

  • netjock on 10/08/2020 - 15:49

    Can i refinance to another bank so i can gain advantage of their new customer cashbacks?

    Some people are telling me i can and some say i cant. Some people say if i transferred the money somewhere else i can? so i just wanted your opinions.

    Of course you can. Theory is you are refinancing the $640k debt. Then move the $640k in cash from your current bank to your new bank offset account. Bank the cash back.

    But I can't see the bank being that stupid to allow you to cash in a cash back and not pay interest. Generally banks have a clause to say you can only pay back a portion of the total otherwise they will wack you with an early repayment charge. Best of luck.

  • El-Rhi on 10/08/2020 - 19:31

    You can definitely refinance. I’ve done a similar thing with multiple banks this year.

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