Refinance Situation Madness

bumperplates on 19/11/2022 - 13:57

Hi,

I've looked at so many different options, and have seen some cashback offers from UBank, ANZ, Macquarie, and a few others.

I can go back to my lender now and drop the interest rate from 5.6 to 4.57 without any further charges. It's left a sour taste though that I had to do that with such a big increase.

I also have a Citi Signature Rewards Platinum Card $6K limit Fee Free based on an old Credit Card offering.

I've got about 20K in the offset now, and my loan is around 330K.

I look at the cashback offers and think how much will remain after discharge, setup, annual fees like the ones with CBA and NAB, and then think will it just go back up again once I'm lured in as a new customer.

I would also like to keep my CC with the same lender to make life a little easier for me, if I can find something similar or better to my current card.

What do you?

Thanks if anyone can offer any advice.

Financial

Comments

  • Edgecrusher on 19/11/2022 - 14:22

    If you are with Citi, you won’t get a cash back with UBank, both are part of NAB.

    Lucky you that Citi will drop your rates, NAB will do bugger all for me.

  • AndyC1 on 19/11/2022 - 14:28

    Go onto one of the compare web sites and see how much loans are at at other places compared to where you are now and see how much you will save in the next say 4 years.

  • bumperplates on 20/11/2022 - 10:30

    I like the thought of the big banks except for the annual package fee where I think its a cash grab. I then think does it work out better if using a higher value CC for better rewards to offset it as well

  • bumperplates on 20/11/2022 - 10:46

    How would you calculate the annual package fee into the overall rate to see how it stacks up, or is it more around flexibility at that point?

  • autonomate on 20/11/2022 - 12:30

    https://www.ozbargain.com.au/node/653711?page=1#comment-1297…

    4.09% with $2500 "cashback" (they match $2,500 in additional contributions after 6 months) at OneTwo.

  • echelon6 on 20/11/2022 - 14:06

    I have 3m with Westpac. After many calls and emails, they gave me a ok rate. But still unhappy. Put in more work, got a refi approved, submitted discharge form, only after all that bs did Westpac give me a competitive rate. I said "sure, apply it to ALL my loans and I will stay". They did, then cancelled the discharge. I submitted a new discharge, and refi several of my loans anyway. Now I have competitive rate for the remaining westpac loans, and new loans with new lender.

    It's absolute bs they make me jump thru all these hoops just to give me a competitive rate.

  • Jugganautx on 20/11/2022 - 17:47

    This is SPARTTTTAAAA

  • bumperplates on 20/11/2022 - 21:59

    Wow! If I were to cancel all cards, and setup two seperate card for my partner and I then what would we the best rewards type package? Should I look for this within a mortgage package, nothing that I have a Citi Signature Platinum Card now where I pay no annual fee, and partner hasan AMEX which they hate using as they can't use it anywhere (only has a 2K limit here but want to also bump it up to 6k for emergencies or making bookings for trips and the like).

  • Kinko82 on 08/12/2022 - 15:42

    Based on your loan amount, you’re likely going to get a better deal with a non major bank like Macquarie or UBank. Even after you factor in the switching fees such as discharge fee of existing bank, usually around $350 and government mortgage registration fee x 2 (depending on state) and any additional upfront fees, the rate savings are quite significant and if you’re getting a cash back like with UBank, that will offset all that and you’ll have a surplus and a rate saving from day one.

    Alternatively, you can speak to your banks retention team and tell them about the offer you’re going to refinance to and see what they can do to match it. Most banks are pretty aggressive with retention right now as there’s not much new business for new home loans at the moment.

    If you used a broker to set up your current loan, it’s also a good idea to speak to them about it so they can help you with this and the comparisons.

    There are plenty of loan comparison calculations online for you to compare two different products and work out the overall financial benefit.

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