Hi guys, I churn out home loan and credit card every 3-4 months. I usually go to the same bank for home loan and credit card.
But now that home loan cash backs are disappearing, I am thinking of having a different provider for home loans (RAMS doing $3k at the moment) and a different for credit cards.
Is anyone doing a similar strategy? What do you churn first? Home loan or Credit card?
Has anyone been approved with Citi credit cards (Last churn 4months ago)?
Thanks!
every 3-4 months? I wonder why are you still not banned from certain banks….
Lots of people do it! I learnt from the masters here
noob here, wanted to know are you actually paying less by keep churning, in terms of total amount paid for mortgage?
like…… does:
interest paid to different banks + total owing amount - cashback
works out less than
pay all interest + owing amount to one bank?
Depends on loan size. If it is a small couple hundred thousand loan then the cash back will be profitable. If its a large loan, the interest differentiate may eat up all profits.
I pay like $100 a week in interest and was getting around $3000 cash (after fees) each refinance, so yeah I was coming out ahead.
Unfortunately you are too late. RAMS is the only semi decent deal, which will net you around $2000 after fees, but then you will be stuck with RAMS
Everyone has a different strategy. I reduce my loan value by cashback amount
3-4 Months on your home loan!? What a stuff around!
Credit Card I can kinda get, but not home loan.
Yeah spending 5-6 hours of work for $3000 tax free is just not worth it. /s
Most OzBargainers earn $1,000 per hour
Go with whatever is more profitable. This will usually be a home loan churn if you can find a $3k cashback ($2k net). A credit card churn will only net you around $700 at best, but this depends how you use the points.
Be aware that RAMS is effectively a broker for Westpac. If you go with them and churn away within 2 years they will have their commission clawed back. This is no big deal for you of course, but then be aware that you won’t be able to use RAMS for any lending in the future as they don’t lend to customers who have previously caused a clawback to their commission. Again, this should be no big deal for you as there are many other lenders to go with for future lending.
Thanks mate appreciate it!
RAMS is the only one worth doing right now anyway. The good offers may not even come back again.
If home loan approval chance is borderline then it would be better to do the mortgage churn between credit cards.