Do you pay less or more – with a 1.96% or 2.09% home loan? It is a trick question – and the depends if you are refinancing = 2.09%
A few lenders are still offering cash backs of $3k – $4k to change lenders. If you do the sums comparing the annual cost of a $800k mortgage and add in a cash back bonus – you are way ahead ” see table below.
The next question I am being asked for frequently ” how long it takes to get a loan approved.
And can I achieve both ?
So actually you can – One of the Big 4 have turnaround times of 1 business day to get to credit and competitive with their rates and $3k cash back – $250k minimum refinance. They are offering 2.19%, a competitive interest rate.
Apply by 31st May 2022, settle by 31st August 2022. Owner Occupier loans (P&I repayments) and Investment Property loans, with LVR+ up to 80% and min $250k loan. Limit of one $3000 cashback offer available per primary applicant withina 12 month period. Some exclusions apply.
What if the borrower wants to wait 5-7 working days ” to achieve lower % rates and$4k cash back?
Example || Loan $800k ” Security $1M = 80% lvr
Rate
Fees
Cashback
Time to break even for upfront fee
Cash back left after 1 year
1.96%
$275 upfront fee
n/a
n/a
2.09%
$0 upfront fee
$4k Cash back Refinance
5 months
$52/m extra cost = $3,376
2.19%
$0 upfront fee
$3k Cash back Refinance
3 months
$93/m extra cost = $1,872
This ” is why you work with a broker.
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