$2K bonus per property from major?

Discussion in 'Loans & Mortgage Brokers' started by Manic, 14th Jul, 2019.

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  1. Manic

    Manic Well-Known Member

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    In addition to the rate reductions, servicing improvements, I hear one of the majors is also offering and additional $2k bonus per property.

    Can anyone shed more light on who?
     
    Manic, 14th Jul, 2019
    #1
  2. Pash81

    Pash81 Well-Known Member

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    Westpac and St. George are offering that. But their interest rates and higher. So u have to do some calculations and see if u r better of with lenders with lower rates or r u better off with the cash rebate but higher rates. I did that calculations ($1.4mil loan) and I found that the lenders with lower rates are better for me.
     
    Pash81, 14th Jul, 2019
    #2
    Manic likes this.
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Pash is right that WBC and STG rates are higher than most second tiers, and certainly higher than most non banks.

    WBC and STG pricing isnt far off any of the majors at any point in time.

    Personally i dont believe its reasonable for eg to compare westpac, which has the capacity to active debt recycle ( in a clunky way) with say Suncorp, that does not, or most non banks which do not provide such options at all

    It IS reasonable to compare WBC with say AMP, which has the Rolls royce of the DR Products, or say Macq which limited but doable.

    As an aside, lots of assumptions here, but for a loan of 1.4 mill thats non deductible, an average model of an Active DR strategy will result in an effective rate of the early to mid 2s.

    Not everyone has the capacity or risk profile to get into an active DR strategy, but my experience is that almost anyone can benefit that has a non deductible debt. The larger the debt, and the larger the taxable income, the more powerful these strategies can be - but they dont come without some market risk.

    Seek specific advice pls

    Loans aint loans.

    ta
    rolf
     
    Rolf Latham, 14th Jul, 2019
    #3
  4. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    NAB were giving 2k purchase rebate.

    But as Rolf said, there is much more that goes into lender selection, which could propel your investment journey.
     
    Property Twins, 14th Jul, 2019
    #4
  5. Pash81

    Pash81 Well-Known Member

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    Isn't it possible to to do some sort of debt recycling with any lender which permits split loans on non deductible debt account? (I though most lenders permit that)
     
    Pash81, 14th Jul, 2019
    #5
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  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    They're all giving away something to get your biz.

    CBA, NAB and WBC will give you $2k....ANZ will throw a heap of credit card points at you.

    Cheers

    Jamie
     
    Jamie Moore, 15th Jul, 2019
    #6
  7. Pash81

    Pash81 Well-Known Member

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    I think St. George and Westpac is offering $2k per property whereas others are offering just one rebate irrespective of how many properties are involved.
     
    Pash81, 15th Jul, 2019
    #7
  8. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    That's true, only Westpac group is offering it on a per property basis.

    Apparently the record is someone in NSW who refinanced 15 properties to them, got $30k. A nice bit of cash, but probably not a good strategic move.
     
    Peter_Tersteeg, 15th Jul, 2019
    #8
  9. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Agree that's dumb. Probably all crossed
     
    Marty McDonald, 15th Jul, 2019
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  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    well yes and no.

    Assuming that will often get one into trouble

    As a worst case, the minimum will need to be the ability to split loans down with minimal fee AND no new loan application.

    Many lenders can't even do that, let along a true master or global limit

    ta
    rolf
     
    Rolf Latham, 15th Jul, 2019
    #10