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Why Switching Banks Now Could Put Thousands In Your Pocket · That Home Loan Hub

• 0:10
  SPEAKER_01: Do you want an extra three and a half thousand dollars in your pocket?
• 0:13
  SPEAKER_01: Then listen up.
• 0:14
  SPEAKER_01: Hey Kunch.
• 0:15
  SPEAKER_01: Kyota, how are you?
• 0:16
  SPEAKER_01: Wonderful.
• 0:17
  SPEAKER_01: We have amazing deals from the banks at the moment.
• 0:20
  SPEAKER_01: Let's talk about that.
• 0:22
  SPEAKER_00: Yes.
• 0:22
  SPEAKER_00: So right now the banks are giving away 1.5% cash back.
• 0:27
  SPEAKER_01: Never in our history of being in finance, we've seen that.
• 0:30
  SPEAKER_00: It's actually so cool.
• 0:32
  SPEAKER_00: So amazing.
• 0:33
  SPEAKER_00: Like, how long have we been in here?
• 0:34
  SPEAKER_00: 20 years, and this is the first time I've seen 1.5.
• 0:37
  SPEAKER_01: Yeah.
• 0:37
  SPEAKER_01: Yeah.
• 0:38
  SPEAKER_01: Back in the day, it started.
• 0:39
  SPEAKER_01: Well, back in the day, let's go back a little bit.
• 0:41
  SPEAKER_01: Back in the day, cashback was never really a thing.
• 0:44
  SPEAKER_01: No.
• 0:44
  SPEAKER_01: Right?
• 0:45
  SPEAKER_01: Then suddenly someone decided, okay, let's reward clients by paying them back some of their legal fees.
• 0:50
  SPEAKER_01: So the cashback, when I remember it came up, was$1,000.
• 0:54
  SPEAKER_01: Yes.
• 0:54
  SPEAKER_01: Yeah.
• 0:55
  SPEAKER_01: And that was the cap.
• 0:56
  SPEAKER_01: And that was paid to your solicitor for the solicitor fees.
• 0:59
  SPEAKER_01: Yes.
• 1:00
  SPEAKER_01: Then somehow they started to push and push and push.
• 1:05
  SPEAKER_00: Well, it increased, didn't it?
• 1:06
  SPEAKER_00: So it was like, you know, every summer or every spring there was a special.
• 1:11
  SPEAKER_00: And it'd be an interest rate plus a$2,000 cash back.
• 1:16
  SPEAKER_00: And then it will increase again the next spring and plus$3,000 cash back.
• 1:21
  SPEAKER_00: Yeah.
• 1:22
  SPEAKER_00: And then it keeps evolving to 0.5 of the loan.
• 1:26
  SPEAKER_00: Yep.
• 1:26
  SPEAKER_00: I remember 0.5.
• 1:27
  SPEAKER_00: Yeah.
• 1:27
  SPEAKER_00: And then it went to 0.8.
• 1:30
  SPEAKER_00: Then we saw 0.9.
• 1:32
  SPEAKER_00: And then at COVID times, I remember$1%.
• 1:34
  SPEAKER_00: 1%.
• 1:35
  SPEAKER_01: Yep.
• 1:35
  SPEAKER_01: And that was the highest.
• 1:37
  SPEAKER_01: Yes.
• 1:38
  SPEAKER_01: 1% cash back.
• 1:39
  SPEAKER_01: However, I did mention that to you, and you were like, I didn't know that.
• 1:43
  SPEAKER_01: When I was building my house with Westpac, Westpac was offering 2% cash back on new builds.
• 1:50
  SPEAKER_01: Yeah.
• 1:50
  SPEAKER_01: But that was to counterfect that ANZ and ASB were offering discount on their floating rates if you were building.
• 1:58
  SPEAKER_01: Yes, so they had the back my build or the blueprint loans.
• 2:03
  SPEAKER_01: Which was like 1.5% interest.
• 2:06
  SPEAKER_01: Which again, unheard of.
• 2:08
  SPEAKER_01: So that was the only time I remember cashback being this high.
• 2:12
  SPEAKER_01: But for normal everyday folks, it was just sort of capped around 0.5 to 1% cashback.
• 2:17
  SPEAKER_01: Now, all of a sudden, last week ANZ comes up and goes, hey guys, we're going to give you extra money for Christmas.
• 2:24
  SPEAKER_01: But there are T's and C's.
• 2:25
  SPEAKER_01: Yes.
• 2:26
  SPEAKER_01: So let's quickly dive into that.
• 2:28
  SPEAKER_00: So the T's and C's are you have to have 20% equity and or deposit.
• 2:34
  SPEAKER_00: Or deposit.
• 2:35
  SPEAKER_01: For a lot of our new buyers, you can also qualify for this deal if you have 20% deposit.
• 2:42
  SPEAKER_01: Yes.
• 2:43
  SPEAKER_00: But it has to be documented before a certain date.
• 2:49
  SPEAKER_00: So the ANZ at the top of my head is the 16th of December.
• 2:53
  SPEAKER_00: Correct.
• 2:54
  SPEAKER_00: This year, 2025.
• 2:56
  SPEAKER_00: So the loan has to be documented then.
• 2:59
  SPEAKER_00: So keyword is documented.
• 3:02
  SPEAKER_00: If you settle after document, it's still honored.
• 3:06
  SPEAKER_01: Yes.
• 3:06
  SPEAKER_01: So a lot of people don't realize when we document the loan, it means we're advising the bank to prepare your loan documents that you go and sign with your lawyer.
• 3:15
  SPEAKER_01: But the settlement, that's when actually you get the loan, doesn't need to happen until two or three months later.
• 3:21
  SPEAKER_01: Correct.
• 3:21
  SPEAKER_01: Because the loan documents usually last 60 to 90 days, depending on the bank.
• 3:26
  SPEAKER_01: Correct.
• 3:27
  SPEAKER_01: Now, WestPec and ASB and BNZ came to the party and they have slightly longer terms.
• 3:33
  SPEAKER_01: Kiwi Bank as well.
• 3:34
  SPEAKER_01: Ah, Kiwi Bank as well.
• 3:36
  SPEAKER_01: Interesting.
• 3:37
  SPEAKER_01: They have slightly longer terms, which is 16 to 18th.
• 3:42
  SPEAKER_01: 18th and 19th?
• 3:43
  SPEAKER_01: 18th and 19th century.
• 3:44
  SPEAKER_00: So because they came to the party, they've given that extra week or few days.
• 3:51
  SPEAKER_00: Documented.
• 3:52
  SPEAKER_00: So again, just needs to be documented and sent out to your lawyer.
• 3:58
  SPEAKER_00: You could even sign after the new year, and then the loan settles within, like you said, 60 to 90 days later.
• 4:06
  SPEAKER_01: Yeah.
• 4:07
  SPEAKER_01: So what we're busy with at the moment is a lot of refinance deals.
• 4:12
  SPEAKER_01: A lot of clients that have their loans coming up for renewal.
• 4:15
  SPEAKER_01: This is the time to change banks.
• 4:17
  SPEAKER_01: And look, I even have a client that has about 15k in break fees from their current bank.
• 4:23
  SPEAKER_00: Yeah.
• 4:24
  SPEAKER_01: And they want to change across because of this cashback.
• 4:27
  SPEAKER_01: It's going to be a game changer and it's going to cover their break fees so they can go from 7% interest to 4% interest and save money and not really feel the pinch of the break fee.
• 4:38
  SPEAKER_01: So absolutely, we're not the other scenario I have as a couple buying property to live in and they're going to rent out their house.
• 4:46
  SPEAKER_01: But that cashback will allow them comfortably to not have a tenant for up to three months.
• 4:52
  SPEAKER_01: Yeah.
• 4:53
  SPEAKER_01: So they can prepare the property to be rented out and also allow for that lull season, you know, when it's quiet over Christmas and things like that.
• 5:01
  SPEAKER_01: So cashback can be used in various ways.
• 5:03
  SPEAKER_01: It's your cash to use the way you want to.
• 5:05
  SPEAKER_00: Yeah, it's actually a really good incentive, especially at this time of year.
• 5:09
  SPEAKER_00: Obviously, if you're refinancing or purchasing a property, you'd have to pay for the lawyer to execute that for you or the switch of banks and things like that.
• 5:19
  SPEAKER_00: But if you minus that lawyer's fee of we say what, 2,000 to 2.5, you're still banking a bit of money for anything, really.
• 5:30
  SPEAKER_01: Exactly.
• 5:31
  SPEAKER_01: So we cannot stress this enough.
• 5:33
  SPEAKER_01: I know.
• 5:34
  SPEAKER_00: I wanted.
• 5:35
  SPEAKER_00: How do I get it?
• 5:37
  SPEAKER_00: Come and see me.
• 5:39
  SPEAKER_01: And the the other thing that we've discovered was and that they sort of shoot themselves in the foot, didn't they?
• 5:45
  SPEAKER_01: Because they've announced this offer and then they said to us, but we're close for pre-approvals.
• 5:49
  SPEAKER_01: We can't do any pre-approvals for the short term.
• 5:52
  SPEAKER_01: Yeah.
• 5:52
  SPEAKER_01: Because they anticipate they're going to be inundated with the refinance applications.
• 5:58
  SPEAKER_01: So get in quick if you are thinking, don't think, just do it.
• 6:02
  SPEAKER_00: Just do it.
• 6:03
  SPEAKER_00: Yeah, we've got a really short time frame now because we are in the last week of November.
• 6:07
  SPEAKER_00: So we need to actually get that approval done and get it documented within three weeks.
• 6:14
  SPEAKER_00: Exactly.
• 6:14
  SPEAKER_01: So come on, people, let's go.
• 6:16
  SPEAKER_01: Let's go.
• 6:17
  SPEAKER_01: Thank you so much.
• 6:18
  SPEAKER_01: And if you've got any questions, let us know.
• 6:20
  SPEAKER_01: Bye.