As a result of both regulatory scrutiny and increased competition, it is no secret that the major banks have lost a lot of market share in the home lending space over the past few years.
Appearing before the House of Representatives standing committee on economics in November NAB chairman Philip Chronican lamented the bank’s loss of market share…
“The major banks, I think, were lending 80 per cent of all home lending only a matter of a few years ago and are now lending something like less than 60 per cent,” Mr Chronican said.
“That tells me that the competitiveness in the consumer lending sector is intense, and we need to sharpen our act and get more of it.”
NAB – $4,000 refinance bonus
It’s not uncommon to see banks running promotions to win new business, but never before have we seen any cash back offers this big.
For clients refinancing to NAB between the offer period, so long as the loan is greater than $250,000, NAB is now paying a $4,000 refinance rebate.
This means if it were to cost say $600 to change providers (exit fees, new mortgage registration, etc.), clients could be up net $3,400 from the outset with the new bank.
Other significant offers
- ANZ – $3,500 refinance rebate (for lending greater than $700k)
- Westpac – $3,000 refinance rebate per property (if you refinance four properties, the incentive could be as much as $12,000)
- CBA – $2,000 refinance rebate
- Many of the big banks also have cash back promotions now for new purchases (around $2,000 in most cases)
Suitability and fine print
As with all such campaigns there are a lot of terms and conditions, and none of the above funders may be suitable based on your own personal circumstances.
If you would like further information please give us a call and we can discuss your personal scenarios with you in closer detail.
Long Property blog content provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Nothing on the Long Property website constitutes legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
