Mortgage churning

[ChrisMars]

Gday.
I was wondering here if anyone have some experience switching mortgage, just for the purpose of the signup bonus, being cash or miles. The scenario would be a mortgage with an offset attached to it, for a balance of zero, making interest rate not really relevent.

 

[Scr77]

I have, but it was 5+ years ago with 2 investment properties. Switched to Qantas credit union (now QudosBank) and included my spreadsheet that contained a long list of credit card applications. I explained that the cards were for points collection and I had no issues at all. In fact, they have been great to deal with and I now wouldn’t leave. Like you, the interest rate isn’t of concern for me.

 

[Happy Dude]

I've refinanced two properties recently and received a cash bonus each time but the main reason was to get a better rate. I think the rate is important even if there's no interest being paid, as it controls the repayments.

But I enjoyed the cash though so will be doing it again when the new customer rate is better than mine and the bank won't budge. I need only the (usual) minimum $250k and always get an offset. Go for it. Mad not to actually.

There is a few threads on OzBargain about this. There's some hardcore souls out there who churn enough to get the equivalent of a decent annual salary.

 

[theblank]

Gday.
I was wondering here if anyone have some experience switching mortgage, just for the purpose of the signup bonus, being cash or miles. The scenario would be a mortgage with an offset attached to it, for a balance of zero, making interest rate not really relevent.

Its just a refinance, nothing special about it at all. except it will take longer for the processing by the bank. Home loans for purchasing property take priority over refinances, for good reason.

Whats your concern?

 

[ChrisMars]

Its just a refinance, nothing special about it at all. except it will take longer for the processing by the bank. Home loans for purchasing property take priority over refinances, for good reason.

Whats your concern?

Just trying to get an idea if aff members think it can be worthwhile, checking there is no particular known gotcha to be aware of. From my limited research and understanding, the effort seems heavier than credit card churn (I guess estimat 10x time the effort), reward is better too (maybe 5x time, once fees are factored in).

 

[theblank]

Just trying to get an idea if aff members think it can be worthwhile, checking there is no particular known gotcha to be aware of. From my limited research and understanding, the effort seems heavier than credit card churn (I guess estimat 10x time the effort), reward is better too (maybe 5x time, once fees are factored in).

Finance in australia is highly regulated - there can be no gotcha.

as you have recognised, its a lot of work. I would be doing it too, but I dont owe enough.

 

[Happy Dude]

Finance in australia is highly regulated - there can be no gotcha.

as you have recognised, its a lot of work. I would be doing it too, but I dont owe enough.

@ChrisMars - not a gotcha per se but this is one of the conditions. Cashbacks almost always have a minimum loan amount of $250k and up. Not really an issue if you're looking to use equity to fund your next investment but no point remortgaging out to $250k just to get a cashback.

 

[ChrisMars]

@ChrisMars - not a gotcha per se but this is one of the conditions. Cashbacks almost always have a minimum loan amount of $250k and up. Not really an issue if you're looking to use equity to fund your next investment but no point remortgaging out to $250k just to get a cashback.

Yea good to know, thanks. As long as I can attach an offset account and pottentially have a total balance of 0 i.e. 250k mortgage, 250k offset, I ll be happy. Should work right?