What does it mean by bank b new valuation loan? How does that benefit us? It seems that the loan will be increased more unless you want to take out equity.
the cash back are not even worth it.
What does it mean by bank b new valuation loan? How does that benefit us? It seems that the loan will be increased more unless you want to take out equity.
the cash back are not even worth it.
Refer to this..
https://geoexpat.com/forum/155/threa...ml#post3843589
If you can get some cash back like 1% every 2 years, its quite worth it. Also you dont have to change banks or do any paperwork, just call the bank and tell them you want to 'lock in' your mortgage for another 2 years and they give you 1% back for doing almost nothing. Thats like a free $100k every 2 years if you have a $10m mortgage, for basically doing nothing.
For me, I went to the extra trouble of drawing up completely fresh loan contracts, with same bank (Standard Chartered). Doing this, I had to do a lot of paperwork and hire a solicitor. Solicitors fees were about $6k I think. But then it meant I could get 2% cashback instead of 1%. I took out a $7m mortgage (double the old mortgage value) and was able to get 2% back on this full amount, then put half the money straight back into a mortgage offset account so my mortgage was effectively only $3.5m. If you look at it another way, you can say I got 4% cashback on a $3.5m mortgage (140k cashback).
I was going through broker, so basically you don’t need to do any paperwork again?
But with the low interest rates is it worth doing it now?