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2019 - Mortgage Refinancing

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  1. #91

    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.


  2. #92

    Join Date
    May 2021
    Posts
    1,733
    Quote Originally Posted by thinkandgrow:
    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

  3. #93

    Join Date
    Feb 2009
    Posts
    8,280
    Quote Originally Posted by thinkandgrow:
    the cash back are not even worth it.
    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).

  4. #94

    I was going through broker, so basically you don’t need to do any paperwork again?


  5. #95

    But with the low interest rates is it worth doing it now?


  6. #96
    Quote Originally Posted by bdw:
    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).

    they asked me to fill all the paperwork again and apply with the new bank. Don’t know what you mean by basically nothing.

    also I don’t think it’s worth it if you have to pay insurance on it, because my loan would be over 60%

  7. #97

    Join Date
    Oct 2006
    Location
    Hong Kong
    Posts
    15,557
    Quote Originally Posted by bdw:
    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).
    Tried this with HSBC. They said you only get cashback based on the increased amount, not the whole amount.

    Also morgate rates are higher now than they were a few years ago.
    bdw and shri like this.

  8. #98
    Quote Originally Posted by pin:
    Tried this with HSBC. They said you only get cashback based on the increased amount, not the whole amount.

    Also morgate rates are higher now than they were a few years ago.
    Is this because you are trying to refinance with the same bank? Did you try different bank?

  9. #99
    Quote Originally Posted by bdw:
    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).
    By the way, have you every refinanced and took out the equity and invest in shares instead of property?

  10. #100

    Join Date
    Oct 2006
    Location
    Hong Kong
    Posts
    15,557
    Quote Originally Posted by thinkandgrow:
    By the way, have you every refinanced and took out the equity and invest in shares instead of property?
    Yes, that is exactly what I did.

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