Lenders are literally paying homeowners thousands of dollars to refinance their existing loan.
Why refinance?
After a record run of Reserve Bank rate rises it pays to shop around to see if you can get a cheaper interest rate.
Or you might want to unlock equity for that long-awaited reno.
So how much will a lender pay you for the privilege of taking on your home loan?
The offers change from month-to-month, but recently St George and ANZ have been offering a whopping $4000 cashback to switch your home loan to their book.
What’s the catch?
Typically, the best cashback deals are offered to those borrowing less than 80 per cent of the property value or LVR <80% which means a ‘loan to value’ ratio of less than 80 per cent. But if you have a higher LVR, Suncorp is offering a $3000 cashback for borrowers with a LVR <90%.
You’ll also want to check out other key loan features before you sign up to take the cash:
- What’s the interest rate and is it cheaper than your current rate?
- What are the ongoing fees and is that better than your current loan?
Some of your cashback will disappear in fees you pay when you exit your current lender, like a discharge fee or solicitor costs. An independent mortgage broker can help you do your homework.
Making property plans for 2023? Contact us for a chat.
