Macquarie Loan Formal Approval

Discussion in 'Loans & Mortgage Brokers' started by Mlee17, 16th Sep, 2020.

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  1. Mlee17

    Mlee17 Well-Known Member

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    Hi all

    Got formal approval from Macquarie. Question is:

    1. Can i change the product from an Offset Package to a Basic Variable?
    2. Can I select the Qantas Frequent Flyer option with my home loan?

    My broker did not highlight to me there was an option to gain Qantas Frequent Flyer points with my home loan account.

    Note that I have not signed any loan documents yet.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    yes, but probably a reassessment
     
  3. Mlee17

    Mlee17 Well-Known Member

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    ''

    just to drop the offset account and link qantas frequent flyer? doesn't that seem much?
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Different products and interest rates.
    Best to ask your broker
     
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I laugh my arse off when I hear FF points now. They were hard to redeem before. You expect points to be like cash with covid? No way. Even flight credits will be scarce and be 10 seats per flight. FF points will be valueless for a long time unless you want to upgrade 1m points for a business class seats

    I cant wait for the FF Karens to squeal.
     
  6. Morgs

    Morgs Well-Known Member Business Member

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    You may want to do the numbers on paying a premium on your rate for QFF offer vs. sticking with the non QFF product.
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Least they are QF not VA

    ta
    rolf
     
    Never giveup likes this.
  8. Jamesaurus

    Jamesaurus Well-Known Member

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    Do the numbers on how much extra interest you are paying for the FF point loan option, (after tax if an IP), then compare this to how much value you can get per point (is it 0.5c for a toaster or have you got 320k pts for business RTW explorer). For me i did the latter and was worth it :)
     
  9. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I ran the options about 5 years ago on the Macquarie FF option on their loans. I tried to weigh up how many points you'd get at settlement, on a monthly basis and the bonus points you get later. I then tried to figure out what a Qantas FF point is actually worth in $$ terms and offset that against the extra cost of the 0.05% interest. My calculations didn't take into account tax deductibility because that's variable on the individual's marginal tax rate and doesn't apply to owner occupiers.

    I came to the conclusion that it's worth it at for a loan amount between $250k - $450k. Otherwise don't bother.

    Below $250k you don't get enough points at settlement to justify the extra expense. Above $450k the points you get each month don't justify the extra expense.

    It's also worth noting that the timeframe is a component as well. I think I did the sums on a period from settlement to the time you get the last points bonus. A longer or shorter period of time would also move the window up or down.

    The other variable is what the points are actually worth can vary significantly. At the time, the most economical use of points was to actually book a flight, not the rubbish you buy on their online store. Today that might be very different. I've also got no idea what the cost of a flight anywhere is right now.

    Also consider the current environment. Can you even use points to fly? Will they be worth anything at all in the coming years? Currently I'd view points as a bonus and not let it influence financial decisions at all.
     
    Last edited: 17th Sep, 2020
  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I dont know if it will matter much. VA points will be redeemable according to Bain...BUT... how many and when ?...for any airline
     
  11. Mlee17

    Mlee17 Well-Known Member

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    I have done the numbers and at the extra 0.05% interest rate on the loan balance of $200k, that's an extra $100 per year in interest. 20k Qantas points at settlement allows you to redeem $100 Woolworth gift card already currently. Not to mention 1,000 additional points per month which is a bonus.

    Another question, has any broker here successfully negotiated for a waive upfront fees from Macquarie for their home loans?
     
  12. Lindsay_W

    Lindsay_W Well-Known Member

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    Yes but not for a $200K loan amount (too small)
    Is this a construction loan? If so, no
     
  13. Mlee17

    Mlee17 Well-Known Member

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    No it is not a construction loan. It is a residential land loan.

    My broker is saying if i want to drop the offset account and link the Qantas point to the loan, it will take a long time and will cost $200 as they need to reissue the loan documents?

    Sounds bit fishy to me - i have the feeling she doesn't want the extra work so she is saying it will cost money to amend these details?
     
  14. Lindsay_W

    Lindsay_W Well-Known Member

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    Not fishy, it's called a re-work fee and it's typical if any changes are made after formal approval.
    Should check if you need to have a credit card in order to receive the frequent flyer points (pretty sure you do) this could mean it has to go back through credit for approval as well, taking longer.
     
  15. Mlee17

    Mlee17 Well-Known Member

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    But it will be free once the loan is set up? I called Macquarie and the customer service adviser say its better to set it up at the start rather than after it is set up.
     
  16. Mlee17

    Mlee17 Well-Known Member

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    the qantas points is independent of the credit card. no credit card is required.
     
  17. Lindsay_W

    Lindsay_W Well-Known Member

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    Cool so question for you, is it worth paying $200 + extra $100 pa. in interest for the frequent flyer points?
     
  18. Mlee17

    Mlee17 Well-Known Member

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    Def not worth if we need to pay the extra $200. Will see what my broker says.