This is probably thought of before but with the current amount of cashbacks on offer for refinancing your home loan, can one possibly profit from constantly refinancing your loan asap? Also I can't get my head around why a bank would pay $3000 for a new customer but would not budge on reducing an existing customer's loan. Case in point existing $400,000 loan at 1.99% vs 1.84% which represents a saving of $600. Bank says they are not able to match the rate. What gives?
Refinance and cashback
love2buy on 14/10/2021 - 17:47
Last edited 14/10/2021 - 17:48
Last edited 14/10/2021 - 17:48
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There are fees involved in changing. It takes a little while to break even, which eats into the cashback amount.
If you have the time, why not just keep applying for cashbacks until you can get no more! My experience has been that banks don't care if you're a frequent refinancer. They've done the math and know there are only so many cashback offers available at any one time. I guess they figure you might just end up staying with them, so it's worth the risk.
I wonder what the record number of refinances within say 2 years is?
My guess would be 5 or 6. There are only so many banks that offer them. I guess is also limited by bank processing time which is typically 1 month.
I've done 3 refinances within 6 months with no issues.Impressive, how much did you net from all that?
Do you use a broker? Any plans to do more?@fredblogs: 2 of those paid a cash back, $2500, $4000, then settled on Athena who seems to offer the best deal on offering their best rates to existing customers as well as new customers - something so many banks seem to have trouble doing!
No plans for any more. Thought I might be tempted ;) Didn't use a broker. If you do, be aware they will have their commission clawed back by the bank if you refinance within 12-24 months of the start of the loan. They're not generally happy with that so if doing constant refinancing you might like to DIY
The new bank with the cash back offer will check to ensure you don't churn loans every month, at least you need to be with your bank for like 1 year.
They will not budge because refinancing will require your effort to complete the forms, get all the latest statements, payslip etc etc…
if they just budge for every customer who ask, means their profit margin will just erode via emails.
Having said that if you bought a house (not apartment) in Sydney more than 5 years ago, your LVR should drop a lot because house prices went up like a rocket - which entitles you a lower rate - the existing bank is just keeping the margin.
so just get your doc ready - and refinance.