Would I refinance my loan if I was paid $2000?
Would you bat an eyelid if a bank offered you $2000 to refinance your home loan? Or how about $3000?
As the Melbourne market seems to be starting to reignite with greater levels of activity, we are seeing more cash back offers on the table, from a number of lenders, than we have for some time.
The banks want your business right? And what could be more enticing than being paid to refinance your loan to them.
While it might seem a no brainer, there are always some things you need to chat about with your broker. What interest rate will you be getting on your loan? If I'm going fixed, will my loan revert to a horrendously high rate when I come out the other side? Is this loan actually the right one for me?
The answer could well be yes. But it is important to make the distinction between where you are now and where you are going. If you will be better off, you might well just enjoy a few thousand dollars along the way.
But in some situations, chasing a cash back above everything else may see you miss out on a loan which is of more benefit to you down the track.
What should you do before you leap? Speak to your broker to work out the nitty gritty for you. That's our job. You may just well get a nice surprise, either way!