Currently borrowed 500k on a 750k property.
Im with CBA at 6.1% Variable and my fixed will run out soon.
Who offers best refinance offer? (also I know there are a few variables in this)
Best Bank to Refinance with?
Rabbitsfoot on 19/07/2023 - 14:46
Comments
Mdebank PRIVATE with Optus security…
lol
Dan the Man…he has a few billion $'s in his coffer at the moment…oh yes he will have to pay several billion to cancel his contract. …
Unloan or HSBC probably have the lowest rates in the market atm, however they won't be much lower than the 6.1% rate you are currently paying. Quite a bit of hassle to move for a 0.25 - 0.30% better rate.
Not a great mentality. On a $500k loan over 30 years, 0.3% better rate is equal to $96 less per month or 34,635.00 over the life of the loan… would you spend 4-5 hours running around to save $1,200 a year? I would…
On the other side of the coin, switching costs money.
Govt Discharge of Mortgage
Govt Registration of Mortgage
Bank Discharge of Mortgage ($300-$350)
Pexa Costs
Damage to credit history & the scrutiny let alone reduced servicability.It is a bit of a hassle indeed.
However, if the bank offers handsome rebate, then you should consider switching nevertheless! HSBC is probably my choice at the moment but beware of their weird application & onboarding process.
Damage to credit history
What damage?
@El-Rhi: Your request and history of bank hopping will be recorded in your Credit History. Everytime there is an entry, it lowers your credit score.
@El-Rhi: @burningrage I have found the complete opposite, I purchased my first home 12 months ago on the dot.
My credit score was 600ish at the time, I have since applied for 4 credit cards, closed a couple and refinance our house once already, and after that my credit score is well over 1000.
@El-Rhi: Not just a single enquiry, but a couple of enquiries in a short time period does.
3 refinances + a credit card did lower my score a bit. It says too many enquiries in the contributing factors.
@El-Rhi: Yes it does and shame to those neggers for not researching before voting.
https://www.equifax.com/personal/education/credit/score/mort…
My experience is consistent with this.
@burningrage: If you goto a broker and they do a check, it does not lower your score. But every time a bank does one, it does.
That s why you should not apply for 3 different banks.
Also, a refinance is a new loan. So it will reduce it a bit. But if you are already in a good score, it wont really matter.
Most lenders only check if you are above a certain number like 750. Not so much at the exact number
lol you would have been upvoted for the fact part. I came here to recommend unloan. I hear what you're saying about the hassle, but I'm refinancing from 6.19% to 5.89%.
Depends on the size of the loan, but I'll be saving thousands per year.ps. I just checked out HSBC (wondering how I'd missed someone cheaper). It reminded me that I'm refinancing investment loans, which have higher rates.
I'm not up to date with PPOR loan rates, but unloan @ 5.89% was best investor rate I could find. For an offset account, Qudos & Ubank @ 6.09%.As for the hassle of changing, loans.com.au offered to change all our existing rates to 6.19%, so I'm going to stick with them for the offset account but move rest to unloan.
Im with CBA at 6.1% Variable and my fixed will run out soon.
What do you mean? Do you have a fixed component and a variable component?
They can also unloan your loan!
What does it mean? Thanks.
it is what they call noe bank sub of CBA.
You can split a loan so that it's partially variable and partially fixed. I split mine twice so I had 3 loans for the one property at one point haha.
https://www.canstar.com.au/home-loans/home-loan-offers/
This summarises them pretty nicely/holistically.
The St. George bank/BoM/BoSA offers were the best when they were $4k, but now at $2k they're not as good. I'd personally be looking at ME Bank, IMB Bank, or HSBC as they're the highest rates atm and ones I'm somewhat familiar with. Can always ask for their best rates and compare. You'd then have to compare the rates and bonus cashback, i.e., is 0.2% higher interest worth the bonus cashback (should be, 0.2% higher interest on $500k is only $2000 more over 2 years vs a $4k cashback).
the one that give best interests
Don't you mean the least?
The best is the least.
Finally someone with a reasonable sized mortgage on here that isn't ridiculous.
Ubank would be my recommendation
They've probably gone thirds on a parking space in Melbourne CBD.
+1
Got a good chuckle out of me.
$750k I’m guessing it’s either a one or two bedroom unit (depending on location) somewhere in Sydney.
in Sydney 2 bed room free standing unit/house is more in the $1m range if not more :( unless you want to travel well over an hour per trip to work.
@OMGJL: Yeah I’d expect as much, I was referring more to an apartment, not a freestanding unit. That’s ridiculous.
Finally someone with a reasonable sized mortgage on here that isn't ridiculous.
Half a million is reasonable? wtf - sure it isnt crazy high but it is still a lot of money….
It's OK, just over 9x national median income only.
Average Ozb income is over $250k pa.
Average Ozb income is over $250k pa.
LMAO - i find that a little high but maybe im just a pleb
OP is in Sydney. So it'd be for an apartment and they didn't lie on the mortgage approval docs to get a $2 million house built by stooges.
Why bother to do any research yourself when you can flick the job onto fellow OZB'ers
OzLoanAdvice…..
Its not like i haven't. But I just figured there were people on here that have done their research.
Same. I did all my research, then put down the challenge here whether anyone here is a better loan bargainer.
It is amazing how many people will or currently are facing this senario
Currently borrowed 500k on a 750k property.
Im with CBA at 6.1% Variable and my fixed will run out soon.Assuming your paying ~2% interest your going from ~10k pa interest to 30.5k pa interest…..
for those paying I&P your probably going from ~15k pa in repayments, to 36k pa…..
Who offers best refinance offer? (also I know there are a few variables in this)
Start here:
At least they didn't get a $1.5 million loan…
lets do the math
1.5m
Assuming your paying ~2% interest your going from ~30k pa interest to 91.5k pa interest…..
for those paying I&P your probably going from ~45k pa in repayments, to ~106k pa…..
WOW - that is insane
Assuming your paying ~2% interest your going from ~10k pa interest to 30.5k pa interest…..
hwhat choice is there
Most banks offering similar rates for new loans at the momentMost banks offering similar rates for new loans at the moment
mearly an observation…..it is crazy to think how many will are f—ked financially and there is literally nothing they can do, as we will likely have 2 more rate rises by years end.
i can only imagin how insane it would be for those who borrow to their limit
no joke.
I have ~290k loan with fixed rate last 2 year, and I was paying 1180 per month, now with the same loan I am paying 1800 per month.
luckily I have some fund that need to be paid 2 years after currently setting in my offset account.
I feel affected with a small loan amount, I wonder how those with 1m loan feel now.
Which bank?
I am currently on 5.93 with commbank variable. Worth finding some cheaper alternatives then going to your loan manager & asking if they can match/get close to them.
ANZ has good rates and also offers $4k cashback. Many other banks have cashback offers going on right now.
Feel free to reach out if you'd like a complimentary credit quote for refinance. I am a Mortgage Broker.
They quoted me 6.04 as of a few days ago. most others i've seen are sub 6%
Medibank