Would Cash Rebate Entice You To Switch Loan to Another Bank?

 

Here is what Jason said in the video. When first making contact with us. I’m going to email you a little questionnaire and I’m going to ask for one pay slip. That’s all I’ll do. If you’re self-employed, I probably won’t ask you for your tax returns yet. That will come further down the track. One of the biggest questions in my questionnaire is “What cash rebate entices you to switch your home loan or your loans from one bank to another?

Most people take three out of five

Meaning? Well, it depends. I’m more interested in the long-term benefits, something like that, it says. I just moved five. I have a client with a homeowner and four investment properties, and she’s just received $14,000 in cash rebates. So, Citibank gave us 6000, Westpac gave her 4000. We’re doing one of the loans at ING; I think that’s 2.29% because that’s the basic product. Guys, don’t be scared of it. It does cost about $600 to refinance your loan from one bank to another. The bank you’re leaving is going to charge you a settlement fee of $350, even though they probably shouldn’t, because it’s all done electronically through PEXA now – but they do. You’ve got to deregister the mortgage at the cost of about $129 and register a new mortgage at the cost of about $129. And there’s a total search fee in there for $36. So roughly $600. But if Citibank’s paying you $6,000 to move your loan to them, plus they have a variable basic investment rate of two point 21%, and you have to pay $600 to move, you’re still in front of $5,400.

So, guys, I know the long-term benefit is obviously more important and people come to us for very specialised advice to make sure their lending is as flexible as it can be. We can do that as well as get the rebates by chasing these banks are getting the rebates. I’m moving my lending around. I’ve just done my 21 tax returns, signing them in the next week. I’m getting $17,000 in rebates, plus I’m moving to cheaper interest rates, better structuring of things. Now that all the values have gone up a little bit, you can move the security mix around and get a much better result. But my point is these rebates won’t be around forever. Take advantage of them.

If you can make a quick 3,6,10 thousand dollars, why not? That’s a great holiday at the end of the year. That’s what I have to say about that.