Variable Home Loan from 5.53% (CR 5.72%) + $3,288 Refin Cashback + $2,000 Purchase CB + up to 0.4% Broker Rebate @ Bank of China

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HURRY LIMITED TIME OFFER
One of the lowest rates on the market plus up to $5,288 bank cashback plus up to 0.4% broker rebate.

Owner Occupied P&I
Variable Rate: 5.58% CPR 5.77 (If you are self employed OR have solar panels 5.53% CPR 5.72)

Investor P&I (IO + 0.2%)
Variable Rate: 5.93% CPR 6.12

Full offset

Cashback Offers:

Can get up to $5,288 bank cashback per customer for a refinance and purchase deal
$3,288 Refinance Cashback (for loans ≥ $400k)
$2,000 Purchase Cashback (for loans ≥ $400k)
First year’s annual offset package fee waived for all new applications
*Solar: Home loan applicants who install or have installed: solar panels; solar hot water systems; or heat pump hot water systems on their loan security property.

PLUS Broker rebate (in addition via broker only. NOT affiliated with the bank) up to 0.3 - 0.4% eg $4,000 for a $1m loan size broker rebate per net loan for any lender (available via broker only, not via the bank. T&Cs apply). e.g:

$400k x 0.3% = $1200
$700k x 0.3% = $2100
$1m x 0.4% = $4000
$1.5m x 0.4% = $6000
$2m x 0.4% = $8000

Should I refinance?

Switching banks to a lower rate is worth doing a calc for savings:

If you have an existing loan and your rate is 6.08%, switching to at 5.58% will save you 0.5% each year.
On a $500k loan, that's a saving of $2,500 interest every year.
Plus lender cashback of $3,288 plus our Broker Rebate of $1,500, you are saving $7,288 in just the first year.

Contact us below for this deal plus our broker rebate (NOT affiliated with the Bank)

Please email us at first instance and we will reply ASAP. Missed calls and OzB messages may get delayed. If you don't get email reply within 24-48hrs (some emails go into our spam), pls call us or text us.

Len - Bundle Loans
0422354868
[email protected]
www.bundleproperty.com.au

ACL 445947
Disclaimer:
The information provided is for general education purposes only and is not intended to constitute specialist or personal advice. This has been provided without taking into account your objectives, financial situation or needs. Because of this, you should consider the appropriateness of the advice to your own situation and needs before taking any action. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.

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Comments

  • +2

    Regarding Comparison Rates (CPR):
    There is a common misconception that lower comparison rates CPR will save you more money and better than a higher CPR - not necessarily and can actually be the opposite, here's why:
    - "Comparison rates" were invented by the government to reflect lender fees over the life of the loan.
    - It is based on a loan size of $150k over 25 years which is irrelevant for most customers. The CPR is actually misleading and can cost you more money.
    - If your loan is larger than $150k, then it is better to pick a lender with a lower ACTUAL rate (even if the CPR is higher) as it will save you more interest each year. Of course take into account all the fees eg $395 annual fees, which may be less significant for a larger loan size.
    For larger loans, a lower ACTUAL rate (with a higher CPR) is often better than a higher actual rate (with a lower CPR).
    - Hence CPR can be misleading and a lower CPR can be more expensive than one with a higher CPR but has a lower ACTUAL rate. The correct approach is to look at the ACTUAL rate plus all fees involved, rather than the CPR.

    The CPR may be high for a few reasons:
    1. It may incl the $395 annual fee x 25 years = $9,875. This extremely high amount is included in the calc of the CPR for a relatively low $150k loan hence greatly inflates the CPR of such a small loan to make the rate appear much higher than it actually is. It is actually not a huge amount over 25 years relatively speaking (equiv to 0.1% rate difference on a $395k loan size)
    2. The fixed CPR is even higher due to after fixed period, it defaults to a higher rate with no discount. In reality, we can always negotiate a competitive discount on variable after expiry of fixed. Also customers refinance after 2-3 years and never stay for 30 years at the same bank.
    3. Smaller online lenders have low CPR but often has up $2,000 in application, valuation, legal, discharge fees (which is negligible over 25 years hence the low CPR, but you get hit at every transaction/refinance. The smaller lenders have a lower CPR as they have no annual fee, but often a large upfront/discharge fee. The CPR is a very misleading number and small lenders using a low CPR look better than larger banks even though it may be the opposite.

    • +3

      It sounds like they need to revise the CPR calculation to more reflect a median size loan.

  • +1

    How long does it take for refinance? As i know, it takes more than 9 months to get an approval. Can you tell me have you complete a refinance recently, if so how long? Can you guarantee the same time.

    • Depends on complexity and lender. Usually approval within a couple of weeks / a month and settlement 2 weeks thereafter

      • I disagree with that, I went for a mortgage with BoC last year it took over 4 months to get all the paperwork and decision resolved, by which time I had lost complete faith in being able to work with them for any contact. The paperwork was standard stuff, it was just really sloooooow getting them to respond.

    • are you sure 9m goz that is the same time that a baby will born from nothing.. come on….

      • lol I am currently with Bank of China after refinancing to them with this same cashback offer (different broker). And yes it took me about 7 months from start to finish.

        • +1

          Wtf..thanks i will pass.

          • +1

            @CyberMurning: Yeah wow. The last one I did to ANZ took 11 days. Why are they taking so long.

            • +1

              @ONEMariachi: I thought HSBC was bad at about 2 months but that included some additional paperwork being needed, but at least there was decent cashback at the time.

              • @DH: Yeah the cash back dry up has been upsetting

            • @ONEMariachi: Sending all the doc to china by war ship across ocean and get processed there

    • I have fairly good experience with BOC, having said that, if you are solid financially.

      However, not to undermine, it’s different for everyone. Similarly with when applying for credit card/s

  • +2

    For new loans. Once the customer has submitted all the required documents whats the time frame for pre-approval?

    • -1

      Preapprovals depending on complexity and lender volumes. Fast lenders can do 1-2 days others can take a bit longer usually few weeks

      • +4

        We are asking specificly Bank of China.

        • They afraid to answer specifically

  • If you have solar panels 5.53% CPR 5.72
    so applying for loan to buy a home with existing solar panels will net a slightly better rate?

    • Lower rate if you are self employed OR who install or have installed: solar panels; solar hot water systems; or heat pump hot water systems on their loan security property.

      • ah. i don't have solar on my existing property, but if i am applying for loan to buy one with solar installed or plan to install solar straightaway would i get this lower rate?

      • What if you have all of them?

        More importantly, what's in it for a bank if you do?

        • +4

          Heuristics: the kinds of people who install solar, remove their old gas appliances etc are typically going to be more reliable customers (more forward focused, able to recognise value of delayed gratification, etc). So, the banks will give those customers a discount.

          • @xyron: Well…that actually makes a lot of sense. Not so much in terms of China's own economic models..but in terms of risk assessment…you have me sold.

  • +1

    What is the total cost for refinancing with BOC?

  • is this applicable for existing customer?

  • -1

    CHYNA

  • Copy and paste "Bank of China" to the "Search deal posts" field on the top right corner of this page. And please make sure you all read how good is BOC. Before you go with your loan. I will just stay with Australian financial institutions or Banks.

    • +2

      Geez ..all employees would have to work 24/8 in being crap to be worse than CBA..

      HUGE achievement if true.

      The C doesn't stand for Commonwealth….

  • +15

    Bank of China:
    Worse application experience. Stupid forms and process.
    Worse assessment experience. Monkey assessors.
    An inexperienced broker will make the above even worse.
    Their website is the worse. My 5 year old can built a better website than their home loan site
    I will stay away unless you really want the cash back. Take the cash back and run. But the experience might not even be worth it.

    You have been warned.

    • I can second that experience. Shocking.

  • +2

    how long we have to stay with the broker to get all the cashback and rebate?

    • +5

      This. I'm keen to take the CCCP neetbux and then yoink my PPOR loan back to a realistic lender.

    • Won't it affect your credit rating?

      • Not worry much credit rating while applying credit card to churn qff pts

        But for $5k each property refinance and we worry of credit rating?

  • +2

    $3,288 Refinance Cashback (for loans ≥ $400k)
    $2,000 Purchase Cashback (for loans ≥ $400k)

    So to get 5288, what do I need to do?

    3.2k for one loan and 2k for another?

    • +3

      Cccp proofreading fails.
      Remind me of browsing aliexpress for $4 phone case

  • Does it include an offset facility op?

    • -5

      First you need the loan, if not no point having offset account. Lol….

      • Of course I need the loan, am talking about the refinance and if the rate offered is inclusive of an offset facility. Sheesh!

  • +1

    Cannot seem to find the fees associated with the loans from the website, any ideas?

  • +1

    Has BOC reduced the rates recently as I couldn't locate the rates you were referring to on the website?

  • what’s the deal

  • +1

    BOC took months to get things approved.

  • +8

    Going to neg this deal. Bank of china caused me great distress. Constantly moved the goalposts for months and everytime they wanted something more i did it and then after about 4 months they refused to comunicate even though i jumped through every additional hoop. Left feeling it was a giant data harvesting exercise. I wrote them demanding to delete all my private information from their systems and they never responddd. Bguess they dont adhere to any aus laws. Beware.

    After this my broker refused to deal with them for any future clients for these reasons

    • +2

      Thanks for sharing

    • -1

      Sounds like my experience with offshored Asian and Indian call centres. I agree it would be a nightmare for something like a mortgage.

    • Wow good to know, Thanks . I was tempted but was not sure. I'm currently on 5.78 p&i with offset. I suppose I should wait to see how the landscape evolves with the majors?

  • Hey OP can you answer the questions above?

  • Settled refinance with them this week. Can answer some of the above questions.

    Process took about 6-7 weeks with a few requests for additional information.
    Broker had to keep hassling them to keep the process moving.
    Had to go into a branch to open offset and online saving account which also doubled as ID check.
    Total costs were about $850 plus early payment fee from previous bank.
    Their app and website are very basic but functional.
    Pop up message on app this afternoon to say variable rates will be reduced by 0.25% from 4 March.
    Yet to have the cashback credited so can’t comment on that.

    • How come there is cost usually they waive for new customers

  • Any good offers on small loans 200k with 50% LVR rate?

    • You must have made the purchase a decade ago!

      • +1

        Nope 2020, but Perth prices were decent before the boom going in with 20% - now the house is worth nearly 1.5 times what I purchased for cause people from the east keep coming to door knock to try and buy our properties, one neighbour did.

        Also trying to make my 30 year loan into a 10-15 year max cause I am frugal.

  • Please do yourself a favor ..don't go with bank of china ….worst lender ever….there are so many other lenders in Australia where I am sure you can get your loan…it's worst customer service …..they should not be allowed to operate this country…..I am all in for globalisation and multinationals but there should be a minimum level of customer charter and service

    • Yep they should just become investor of aliexpress and temu and shien… we will defo support them

  • There are multiple people complaining about this broker here

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