Cash Incentive for Refinancing Using a Full Mortgage Offset Package

Boogerman on 03/05/2023 - 08:14
Last edited 03/05/2023 - 08:15

Anyone on here refinanced their mortgage with a full offset account & obtained a substantial cash incentive?
Of those, did you still get a substantial incentive when the entire mortgage was offset by the savings account?
How often have you refinanced continually using mortgage offset accounts? Every 6 months? 12 months?

(If anyone's wondering, having the entire mortgage offset with savings gives you an effective interest rate of whatever the mortgage rate is, circa ~ 6%. Additionally it's untaxed, unlike a savings account, so the effective rate is circa 8-10% depending on your personal income tax rate. You can then use the savings if & when required)

Financial Home Loan Loan

Comments

  • Keplaffintech on 03/05/2023 - 08:33
    +2

    Yes have done it many times, at least once every 12 months. Always get the cahsback.

    Only some brokers will consider the 'net loan balance' as part of their own additional cashback scheme. However, banks only seem to care about the loan value (and don't care that it has been offset).

    • Boogerman on 03/05/2023 - 09:00

      Cool. What cash payment have you been getting & what has been the net return after the loan changeover fees?

      • Keplaffintech on 03/05/2023 - 13:17

        Depends on the offer. 2-4k. Net return is usually that figure minus ~$500 after all the fees etc. My broker typically covers establishment fees and first year annual fee.

  • Duckie2hh on 03/05/2023 - 09:36

    $5,000 refinance offer to switch to bank of Melbourne. Good rates, full offset. Changeover every 24 months, otherwise the mortgage brokers gets clawed back by the banks.

  • Donaldhump on 03/05/2023 - 10:27
    +2

    i felt bad getting a home loan then offsetting it entirely the next day, but they didn't care

  • impoze on 03/05/2023 - 10:41

    Just did it with ANZ $4k cashback

    They also don't have an annual package fee saving $395, only $10 p/m for offset.

    Will probably do again next year

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