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$3,500 Home Loan Refinance Cashback (Minimum $250,000 Loan), (Expired: Rates from 4.64%, CR 4.97%) @ Westpac

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$3,500 Home Loan Refinance Cashback (Minimum $250,000 Loan), (Expired: Rates from 4.64%, CR 4.97%) @ Westpac
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AssociatedMortgage Broker @ Lending Clinic on 28/01/2023 - 09:57 westpac.com.au (1023 clicks)
Last edited 26/05/2023 - 11:27 by 2 other users

Hello OzBargainers,

Sneak preview into Westpac's new home loan cashback offering from 31 January 2023:

  • $3,500 Refinance Cashback available for new refinance applications received between 31 January 2023 to 30 June 2023 and settled by 30 September 2023. Offer may be varied or withdrawn at any time.
  • Min Loan amount $250k and loan to value ratio (LVR) up to 80%.
  • Limit of one $3,500 cashback payment per customer regardless of the number of applications, applicants, properties or loans involved per 12 month period. For joint applications, only one cashback payment will be paid to the primary applicant.
  • Offer available on Owner Occupier (Principal & Interest repayments) and Investment Property Loans (Principal & Interest and Interest Only repayments) with either the Premier Advantage Package ($395 Annual Package Fee) and Flexi First Option Home Loans.
  • The cashback will be paid into a Westpac Choice transaction account within 60 days of settlement. This account must be in the same name as the home loan account and linked to the home loan at settlement.
  • This offer is not available for switches and refinances of home loans within the Westpac Group (which include Westpac, St.George, Bank of Melbourne, BankSA and RAMS), Owner Occupier Interest Only loans, residential lending originated under a trust, and residential lending under a company name.

Interest Rates:

  • Interest rates for their basic (Flexi First Option) loan start from 4.64% (CR 4.97%) for Owner Occupied P&I, 4.94% (CR 5.27%) for Investment P&I, and 5.44% (CR 5.77%) for Investment I/O, without offset account. No upfront fees from Westpac, comparison rate is higher because the introductory 0.40% discount drops off after 2 years, and the loan will still have 23 years to go based on the model.
  • If you would like an offset account, the website shows a much higher rate, but we can usually negotiate a rate which is very similar to the basic loan.
  • They also have very good fixed rates, for example Owner Occupied 1-year fixed rate starting from 5.34% (CR 6.45% based on the system default revert variable rate of 6.19% and $395 annual fee on a $150k loan), 2-year fixed rate starting from 5.89% (CR 6.48%).

On top of Westpac's offer, we also have our own broker cashback & holiday accommodation voucher 😀

We look forward to helping you save money, or buy a property!

Arman Soetanto
M: 0431 825 128
E: [email protected]
W: www.lendingclinic.com.au
Lending Clinic Pty Ltd (Credit Representative Number 511270) is authorised under Australian Credit Licence Number 384704

Financial Cashback Home Loan Investment Loan Loan Refinance

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closed Comments

  • sc00terMcTav on 28/01/2023 - 10:56

    Well crap,.. only refinanced with them any 3 days ago 😔

    • jdreamer on 28/01/2023 - 10:57

      Same… my refinance just settled yesterday. :(

      • Lucille Bluth on 28/01/2023 - 11:14
        +1

        Did you get any cashback? The comparison rates and annual fee as a whole isn't that spectacular unless you offset it with some cashback offer on the side.

    • Rainmmaker on 28/01/2023 - 12:06

      Same here but I got cash back

    • tommyng79 on 28/01/2023 - 19:40

      which one did you refinance from? if it was not within Westpac group, you should get 4k cashback.

    • jj1 on 29/01/2023 - 08:28

      There is currently an existing cashback offer for westpac (just 2k instead of 3.5k). Did you loan meet the criteria listed on their page?

      https://www.westpac.com.au/personal-banking/home-loans/refin…

  • albot on 28/01/2023 - 11:02
    +4

    On a variable loan, is there any downside to churning often, apart from fees (which will be more than covered by cashbacks)? Can I just hop around when there's cashbacks available?

    • JTasko on 28/01/2023 - 11:18
      +3

      Following

    • timle on 28/01/2023 - 11:42
      +1

      I was also wondering about this. I figured there’d be a minimum term you have to stay for, but can’t see anything about it in the terms. Maybe constantly refinancing isn’t good for your credit rating?

    • El-Rhi on 28/01/2023 - 11:54
      +1

      The only downside is if you don’t like free cash. If this doesn’t apply, then go for it.

    • od810 on 28/01/2023 - 12:11

      I do it every year or two. Only thing i noticed is that my credit score increases each time. But i guess if you churn like crazy, at some point they can say sorry no thanks. But i doubt the banking system is that sophisticated yet.

      • albot on 28/01/2023 - 12:56

        Credit score increase? Do you mean get worse?

        • Ryan-H on 29/01/2023 - 10:47

          My credit score has only ever increased when applying for mortgages, I believe that this is the only type of credit application being seen as "good credit".

          Probably because a home loan is supposed to have the most scrutiny applied to your financial situation.

        • od810 on 29/01/2023 - 13:33

          Yes, increase. Home loan is perceived as good loan i.e. you have security back, you have good savings to own a home. I talked to one of the credit analyst where i used to work, and she confirmed it was true. You dont even need to proceed with the loan, just apply would give you a bump in credit score (that is what she told me)

    • sevendollarsfifty on 28/01/2023 - 12:17
      +3

      It's definitely worth it, but the admin is a pain. Feels like having a second job sometimes having to have all the papers in order, field phone calls from the broker, emails from the conveyancer etc.

    • ozBfrugal on 28/01/2023 - 12:19

      Account for the fees that you will get charged and you'll be fine. In my experience, the last couple of refinances I had done had fees between $1-1.5k when accounting for break fees, loan sign up, mortgage registration etc. Personally if you're chasing the cashback and not looking at interest rates, then you should be looking at minimum $2.5k to make your time worthwhile.

  • MrKD on 28/01/2023 - 11:19

    What is the basic variable rate for 80% LVR investor?

  • ronnknee on 28/01/2023 - 11:40
    +2

    Arman helped me refinance my home loan last year. He was responsive and very pleasant to work with. Highly recommend.

    • AssociatedMortgage Broker @ Lending Clinic on 28/01/2023 - 12:27

      Thanks for your kind words Ron 😁

  • justtoreply on 28/01/2023 - 11:43

    Is it still $4k offered on asking? Sometimes they have a higher amount they can approve. A little while ago it was $3k advertised and $4k on request.

  • itsfree on 28/01/2023 - 11:47
    +3

    Horrible bank to deal with. Applied to refinance with them late last year and they have stuffed me around endlessly. Breathtaking incompetence.

    Thinking of just sticking with ANZ, particularly since it means I keep my offset account. After my fixed rate ended, my ANZ bank manager brought my rate down to 4.94% as well.

    • pencilhead on 31/01/2023 - 13:08
      +1

      I went in yesterday and got 4.84. Worthwhile sending manager an email asking for it to be looked at again.
      They are offering 4.84 + 4K cashback on website.

      Unless you have more than approx 5K in offset, its not worth having an offset - ANZ charges $10/month for offset account.
      I was saving about $7/month.

      That said - still thinking of moving to westpac - 5k better off after 12 months.

  • Gazza-75 on 28/01/2023 - 11:53

    Variable with offset = 6.54%, no thanks ill pass.

    • od810 on 28/01/2023 - 12:13
      +1

      I am pretty sure you can negotiate to 4.xx i am currently with them and my rate is 4.99 with offet too. But i really dont like their system.

    • justtoreply on 28/01/2023 - 18:47

      Advertised rates are irrelevant. There's always a discount, which you can haggle based on your scenario

      Right now, after discount, they are something like 4.9% as an indicator

    • tommyng79 on 28/01/2023 - 19:48

      the basic package is 4.64 no offset but you will get redraw, pretty similar function.

  • Rainmmaker on 28/01/2023 - 12:05

    I just refinanced and got $4k by asking

  • noise36 on 28/01/2023 - 12:24
    +1

    I just recently had St George pay me $4K to not leave them and they dropped my rate to match the competition.

    • tonyhtsun on 28/01/2023 - 12:43

      Did you contact them saying you are leaving?

      • noise36 on 28/01/2023 - 13:46

        started refinancing, they made the offer right before I left.

    • ronnknee on 29/01/2023 - 00:59

      Anything stopping you from leaving next month?

      • noise36 on 29/01/2023 - 11:34

        They didn't pay me for 6 months, just got the cash recently.

        • ronnknee on 29/01/2023 - 15:07

          Looks like this deal came at the right time.

  • kenneth192k on 28/01/2023 - 12:37

    According to most contract between applicants and broker (also between broker and bank), is that it need the mortgage to stay for 2 years to avoid any penalties to broker and customer?

    • pembajak_sejati on 28/01/2023 - 13:31

      i never heard between broker and customer such contract. but u may burnt the bridge between you and the broker.

  • mrgeepee on 28/01/2023 - 12:47

    So imagine my current home loan is effecively fully offset, but it still has more than 250k owing.
    What stops me applying for this, taking the 3.5k, and then fully offsetting again, leaving $1 owing?

    • noise36 on 28/01/2023 - 13:47

      Nothing. Do it twice a year and get free holidays.

    • Royale with cheese on 28/01/2023 - 17:40

      Essentially banks value good borrowers to strengthen their books and rating in the times of looming recession

      PS. You don't need even $1 to be outside of the offset. Bank really loves having your cash in offset which it can invest or to balance their sheets

      • mrgeepee on 28/01/2023 - 18:03

        Wouldn't mind having their 3.5k on my books!
        My alternative is to just close out my existing homeloan.
        I can't imagine there isn't some gotcha that prevents this type of gouging.

        • Royale with cheese on 28/01/2023 - 18:40

          In the bigger scheme of things, the cashback is peanuts from what the bank makes from a vast majority through the interest payments. The banking system is based on huge profits. Paying off your home loan means you lose money available to spend on a short notice so really, bank still wins

  • Anonymous18 on 28/01/2023 - 17:16

    does westpac still exclude corporate trusts in their assessment of personal mortgages?

    • AssociatedMortgage Broker @ Lending Clinic on 29/01/2023 - 19:53

      If the trust is trading profitably and doesn't rely on your personal income to pay its debts/expenses, potentially can ignore the trust.

  • Brick50 on 28/01/2023 - 20:57
    +1

    Could be completely wrong but 4k cashback with st george looks to be better than this deal? For 80% LVR ratio 4.85% comparison rate and higher cashback?

    I've only had a home loan 6 months so never refinanced before, I could go to HSBC at 4.69% with $3288 cashback or St George 4.84% with $4000 Cashback. I'm currently paying 5.09% so as long as I refinance again in around 12 months both of those deals seem pretty comparable? At around 2 year mark the extra interest on the St george loan would eat up the $700 less cashback?

    Trying to get my head around it, are you guys looking closer at the actual interest rate or the comparison rate?
    thanks

    • AssociatedMortgage Broker @ Lending Clinic on 29/01/2023 - 19:42

      Comparison rate is a shortcut method but it could be misleading sometimes. For the Westpac offer, if you don't need an offset account, LVR <=70%, you can get 4.64% variable rate in the first 2 years, and after that it goes to 5.04% variable rate. Most people sell their property after 5-10 years, and many refinance their loan after 2 years, or re-negotiate with the same bank. So you probably won't end up paying the 5.04% variable rate, however this is reflected in the comparison rate. Comparison rate goes through the life of the loan from start to finish when it's fully paid off, modelled on a $150k loan, with 25-year loan term, and ignores any cashback incentive. If you're focusing on the first 2 years only, Westpac is a bit cheaper than St George if you don't need an offset account.

  • naru6705 on 29/01/2023 - 07:53

    I have another question about refinancing - if I have paid my loan for 10 years, you may know from your amortisation schedule that every loan while paying the same amount per month have a lesser and lesser interest component and you pay more months over a month in principle component as time goes on.
    So my question is would the refinancing will make you pay less in terms of the amount debited but since you at the start of the loan again with the new bank you would pay a much higher interest component?

    I hope I am able to explain my question

    • AssociatedMortgage Broker @ Lending Clinic on 29/01/2023 - 19:48

      It depends whether you refinance your loan to another 30-year loan or make it a 20-year loan. It may make sense to get another 30-year loan, to reduce your minimum repayments (more cash flow for you, because interest rates may go up even more!), to improve borrowing power to buy another property, etc. If you are an excellent saver, have a lot of money in your offset account, each month your salary is more than your expenses and you save more money each month, and your spending is not influenced by how much your minimum loan repayments are… theoretically either way you pay the same interest charge. If you do a 30-year loan, your offset account will accumulate more money quickly. The net loan balance (net of offset) should be the same as if you do a 20-year loan. But if you spend most of your salary, a 30-year loan will make it more likely for you to spend more, because there will be more money in your savings/offset account and you're more likely to spend it.

  • frostybite on 22/02/2023 - 17:57

    Applied on 1 February, submitted documents on the 6th, and just settled today! Really quick!

  • KanJuice on 12/03/2023 - 21:45

    Can OP or anyone confirm if the cash back is available for Owner Occupied, Interest Only, with Offset Account loan ?
    I ask because the T&C on Westpac website indicate this loan type is excluded from cash back.

    • AssociatedMortgage Broker @ Lending Clinic on 12/03/2023 - 22:02

      Owner Occupied Interest Only is excluded from cashback offer. If it's Investment loan, Interest Only is okay.

      • KanJuice on 12/03/2023 - 22:07

        Thanks. What are the interest rates for both Owner Occupied IO and Invest IO loans ?

        • AssociatedMortgage Broker @ Lending Clinic on 13/03/2023 - 10:34

          We can request a pricing approval for your specific loan amount and LVR, but potentially can get 6.19% Owner Occupied I/O, or 5.49% Investment I/O, variable rates at LVR <=70%, +0.10% if LVR >70% & <=80%.

        • AssociatedMortgage Broker @ Lending Clinic on 14/03/2023 - 14:30

          As an update, we should be able to get the 5.49% variable rate for either Owner Occupied I/O or Investment I/O, via a negotiated pricing approval.

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