Hope to get some advise. I'm currently banking with ANZ and I'm moving Westpac for a lower rate and $4000 cashback.
After I submitted discharge form to ANZ, they now offer $4000 cashback and match Westpac's rate.
I have accepted the offer, but thinking once I receive the 4000 from ANZ, can I just refinance with Westpac to get another $4000? any implication for doing this? or any bad record in credit report?
Has anyone been in the same situation?
Thanks
Why are banks so generous?
Because they have done the risk / benefits assessments and on the balance of probabilities enough people will stay on (with big balances) and it will still be profitable even with the odd cashback.
For every dollar they hold in deposit from a depositor they can lend that money out 9 times.
They pay Jonno 2.5% for his 100k term deposit and then use that 100k to become 900k at 5.6%.
It was a tongue in cheek question to crowreallys sarcastic answer.
Where does the other $800k come from?
@El-Rhi: That's Tsunami's point - as a Bank, they are able to loan out way more than the amount they actually have. It's fugged
but thinking once I receive the 4000 from ANZ, can I just refinance with Westpac to get another $4000?
To be honest I imagine there would be fine print specifically telling you not to do that (I'm not a lawyer but I just have to imagine there is). I would honestly hazard a guess it would be something like "must stay for 12 months" or something? Definitely check if they ask you to sign/accept/declare anything.
No - I actually just got the 4000, there was no confirmation email; fine print or whatever
Rate drop immediately and the 4000 hit account within 1 week.
Will be very awkward to call ANZ to ask if there are any condition for this; they may know my intention :); but I guess i may have to call to make sure
Will be very awkward to call ANZ to ask if there are any condition for this; they may know my intention :)
Hey maybe they'll drop another $4k and then give you some stipulations? lol
That's very naive of anz doing that, other lenders won't give you the money straight away, usually few months down and by then your existing application will be lapsed and you will need to redo again. But if they already match the rate and cashback then what's the point of switching? Or you don't want to sour the relationship with the broker?
There isn't any fine print, you can do it.
However, ANZ may blacklist you from refinancing to them again.
yes i did exactly this
screw the banks
Yea haha. How long did you wait before switching? And from ANZ?
Haha good move. Btw, do you usually apply to the new bank before discharge the current bank?
Did you call and try to get ANZ to match before sending discharge form?
No I didn't. They call me after I submitted the discharge form.
Just looking to refinance from ANZ. After you submitted the discharge form, how many days did it take for their retention team to contact you?
They won’t always contact you
What was your loan size with ANZ?
You are good to jump to a different bank. However, if banks see you refinancing too much you can get blacklisted/not accepted if you try to change in the future.
Which bank blacklisted you?
I haven't as I've only refinanced once. But it's what my finance guy said.
How did you go? Question on refinance, did you apply to the new bank first then submit discharge form? And when you apply to the new bank, did you accept the loan straight away or wait for the discharge with the current bank?
Sorry for many questions
Thanks
Funny, I just had the same thing happen. I was going to move banks and refinance to interest only…. the ANZ retention team offered me the same rate and $4k… They instantly transferred 4k (nothing signed) condition was I had to approve the cancellation of the discharge…. Now, they rejected my refinance to interest only and the rate they're now offering is .54% higher than where we started…. (They say it's because my wife is taking extended maternity leave, I told them all of this beforehand.) I don't get it, I'm about to just start my application again with the other bank… I feel like ANZ suckered me back in and now slowly ratcheting the rate back up thinking I'll suck it up?…
Seems like a change from a while back. I went from ANZ to CBA.
I spoke to a Manager at an ANZ branch saying rates were rubbish, and I give them one chance to do a better rate or I leave ANZ with my mortgage.
Manager said there was no room for him to offer a better rate as an existing customer, but said there was a number I should call. Rang it, went through the details and got nothing. So I left.
$4k would be a dream if they can match rates too!
Yeah, there won't be any fine print or conditions attached to any of this, go for it.