Is it possible to keep refinancing home loan with a different bank and getting the cashback rewards?

Lhz309 on 07/09/2022 - 18:22

as titled, would like to know if it's possible to keep switching home loan banks and getting the few thousand dollars cashback every couple of months.

I understand there is some penalty involved for leaving your current bank, but was told by a broker that the cashback will cover the penalty so you still have some extra money left

so even if the interest rate from the new lender is slightly higher, as long as cashback covers the gap before I refinance again I still have an incentive to do it

Just wondering how feasible this practise is

Financial

Comments

  • randomusername2017 on 07/09/2022 - 18:36
    +2

    wondering how feasible this practise is

    Input your personal variables here

  • timothy2 on 07/09/2022 - 18:44

    yes, many of us are refinancing frequently just for cashback offers. For me it’s usually a total of about $500 in fees per refinance

    • hz309 on 07/09/2022 - 18:45

      how often do you refinance may i ask, and how much leftover cashback do you get after deducting the penalty fee

      • timothy2 on 07/09/2022 - 18:46
        +1

        roughly every 6 months. Usually profiting $2.5k (on a $3k cashback)

        • treekangagaroo on 07/09/2022 - 18:54

          Is $500 the annual fee ?

          • timothy2 on 07/09/2022 - 18:59
            +2

            @treekangagaroo: I’ve only signed up to banks with no signup / annual fees. $500 is the discharge fee from the previous bank + the state fees

  • footyboy on 07/09/2022 - 18:48
    +4

    Broker here. You can apply for refinance as often as you want to.

    That said, with multiple enquiries you'll run the risk of being assessed as a promotion chaser, and eventually you'll start getting declines.

    Seen this happen many, many times.

    Also, had a client come to me recently who had been declined when trying to buy a second property, as he had a lot of enquiries for his home loan, so it can also affect bigger picture plans too.

    Cashbacks are great, just don't take the p*ss 😄

    • hz309 on 07/09/2022 - 18:58

      thank you!

    • boomramada on 07/09/2022 - 19:15

      Look like your client is a gold status member in Ozb 😄

      • footyboy on 07/09/2022 - 19:22
        +2

        @boomramada Platinum baby!

      • iDroid on 07/09/2022 - 19:44

        Pretty sure his name was broden.

    • cameldownunder on 07/09/2022 - 22:16

      Not refinancing, but inquires by hopping credit cards already affected my credit rating !

    • avoidfullprice on 08/09/2022 - 02:25

      you didn't have to pass on clawback back to your client?

    • El-Rhi on 08/09/2022 - 06:40

      Seen this happen many, many times.

      How many prior cashbacks had they received?

    • Ughhh on 08/09/2022 - 11:23

      Are trailing commissions based on clients remaining principle balance, regardless of offset amount?

  • CodeXD on 07/09/2022 - 18:49
    +6

    Depends how good your credit rating is. Each refinance will trigger a credit check and banks will question if you have too many. Especially if they can see you are churning after getting cashback bonus, they will block you.

    • footyboy on 07/09/2022 - 18:54

      This.

      • spiff on 07/09/2022 - 20:23

        How often is too often? And how long do they block you for?

      • Chandler on 08/09/2022 - 09:28

        Whilst I understand it from the banks point of view, isn't this a bit dodge?

        Customers chasing new customer bonuses since businesses don't look after existing customers. Customers get locked out because they keep moving around to get new customer bonuses?

        Assumably customer would be able to prove suitability for credit, so the fact that they've had numerous credit checks is not a good enough excuse to deny credit, in my opinion. Yes, banks are private entities but as above, if you don't want customers chasing new customer bonuses maybe they should do something to look after existing customers…

    • El-Rhi on 08/09/2022 - 06:38
      +2

      Especially if they can see you are churning after getting cashback bonus, they will block you.

      Which banks will block you?? Never heard of this

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