Home Loan Sweeteners

[NoName]

Currently looking at refinancing a home loan and wanting to know people’s experience with getting banks to throw in anything to sweeten the deal, specifically frequent flyer points. I know NAB have their 250k velocity point offer so not really talking about them in this case. As an example Westpac have offered me a rate I’m pretty satisfied with and about $1000 to cover refinance costs etc as well as a fee free credit card for myself and MrsNoName with their current 50k QFF point sign up bonus. The thing is we can get this card fee free with the bonus anyway without the home loan simply by opening a Westpac transaction account so this isn’t really adding anything to their home loan offer. Obviously I will point this out the next time I speak to the staff I’m liaising with. If I was to ask for a bigger sign up bonus is it likely they can swing something? Are there any other sweeteners I should ask about?

Finally, what will be the credit check situation with a home loan with credit card attached? Will they just do the one enquiry for each person for the home loan or will it be one enquiry for the home loan and then another for the credit card?

Thanks for the help.

 

[cove]

Try to get a housing loan where the first number has a three in it for a couple of years. Furiously pay it off as non deductible interest paid is a huge impost on your lives while you have a personal home mortgage. You only have to pay off a housing loan once and then provided you don't get tempted to buy another more expensive home all you have to do is properly insure your home and contents.
Separately you can do the NAB CC for 75,000 Velocity points for $150 times two or even cancel an Amex Velocity and get a second sign up bonus times two. Of course there are similar sign ons for Qantas points but right now Velocity redemptions are a little easier.

 

[NoName]

Thanks for that. Yep have all the first part covered. Sounds like interest rate may be the only point of negotiation then? Oh well, will just have to do sign up bonuses seperately then I guess.

 

[docjames]

I'd be almost forgetting the points and focus on rate only.

 

[snabbu]

I'd be almost forgetting the points and focus on rate only.

Exactly what I've just done. Went from 5.01% to 3.69%. The time frames have blown out from 4 weeks to 8 or more for the big 4 and many others but still, a couple of weeks extra to wait is nothing if you can chop that percentage down.

 

[docjames]

Exactly what I've just done. Went from 5.01% to 3.69%. The time frames have blown out from 4 weeks to 8 or more for the big 4 and many others but still, a couple of weeks extra to wait is nothing if you can chop that percentage down.

That's a great rate. Who was that and what timeframe (SVR less disc or fixed term)?

 

[cove]

Yes it is a rate thing. You need to chase down a great rate and then pay the mortgage off fast so you don't get caught with a vicious upswing in the future. Make sure you know all the fees and charges as you could get walloped if you are not careful.
A 3.5% mortgage may last for a couple of years which would really help everyone other than the investors providing the money.

 

[Dr Ralph]

The only sweetener you should be worried about is getting the lowest possible rate + ensuring no on going fees. If there are sweenteners included in the deal you can be sure that you'll be paying for them somewhere along the line.

3.61% and no on goling fees with U Bank is a great offer at the moment.

 

[cove]

U Bank don't generally do re-financing. They are great for straight out home loans for a fresh owner occupier home loan.

 

[NoName]

Perhaps I should have been more clear, of course the rate itself is he number one criteria. If there are two who are matching each other with the same or similar fees (which is what will most likely happen with the negotiations I'm having) then anything additional that can be offered would be a fair consideration I would have thought.

Looking at 3.64% incidentally.

 

[cove]

I guess we are giving you a pile of pretty conservative views on borrowing. If you use a broker there are fees and trailing commissions so watch that.Loans with bonuses tend to have higher rates and seeing a housing loan is most likely to be not tax deductible you can work out the issues.
We are paying just under 2% (after tax deduction) on a property mortgage. We will probably pay it to zero in the not too distant future as we don't really need the loan.