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326 posts

Ultimate Geek
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Topic # 240716 21-Sep-2018 15:31
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Hi, my fixed 2 years terms is ending soon. We got ours through a broker and with cash back deal (a couple of thousands I think).

 

Now, can I switch to different mortgage provider/broker if I want, at the end of my fixed term of course?

 

I did had a brief check with my broker, and she said I cannot change unless I paid my cash back back, sounds reasonable, but as I can't find our contracts, and think it worth double check?


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57 posts

Master Geek
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  Reply # 2094621 21-Sep-2018 15:44
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You need to get a copy of your contract....

 

I had a 2 year cashback with Kiwibank, but the wording said that I would have to pay back if I leave within 3 years....

 

 

 

So, it all depends on the wording.


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Master Geek
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  Reply # 2094628 21-Sep-2018 15:58
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Similar situation with an ANZ mortgage.  I believe the stipulation was something like ANZ becomes our primary bank for the next 3 years on signing the mortgage documents.




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Ultimate Geek
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  Reply # 2094630 21-Sep-2018 16:10
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Thanks.

 

My broker did mentioned that I need stay with ANZ for three years, probably a common practice at the time.


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  Reply # 2094649 21-Sep-2018 16:57
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Should be no problem to change mortgage brokers. But if you mean refinance the mortgage to a different bank, that will be a lot more difficult.


You would also need to be getting good savings from a different bank, to justify paying the legal fees involved in a refinance.







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Ultimate Geek
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  Reply # 2094772 21-Sep-2018 20:59
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Aredwood: Should be no problem to change mortgage brokers. But if you mean refinance the mortgage to a different bank, that will be a lot more difficult.


You would also need to be getting good savings from a different bank, to justify paying the legal fees involved in a refinance.

 

Think again, probably not going to switch mortgage broker, been with them for 6 years and have no issues at all, but will keep my options open next time when switch bank.

 

Yes, I am really think about switch bank if I can get better rate, but if I am stuck with my current bank due to the cashback offer, I doubt that they will offer the best rate in order to keep me.

 

Legal fees for refinance, I would assume it will be covered by the new bank, or are they not even cover legal fee nowadays?

 

 


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Ultimate Geek
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  Reply # 2094777 21-Sep-2018 21:22
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pstar008:

 

Aredwood: Should be no problem to change mortgage brokers. But if you mean refinance the mortgage to a different bank, that will be a lot more difficult.


You would also need to be getting good savings from a different bank, to justify paying the legal fees involved in a refinance.

 

Think again, probably not going to switch mortgage broker, been with them for 6 years and have no issues at all, but will keep my options open next time when switch bank.

 

Yes, I am really think about switch bank if I can get better rate, but if I am stuck with my current bank due to the cashback offer, I doubt that they will offer the best rate in order to keep me.

 

Legal fees for refinance, I would assume it will be covered by the new bank, or are they not even cover legal fee nowadays?

 

 

 

 

It won't be in your loan contract but you would have signed a deed of acknowledgement or similar for your cashback which ties you in for a set period.

 

ANZ use to be 2 years but changed to 3 years a while back - probably 2-3 years ago so I wouldn't be too surprised if you are on a 3 year agreement. Most (if not all) banks are now 3 years to prevent churn. 

 

If you go to a new bank they may offer you a cashback to help with legal costs. Typically if your mortgage is under $500k you might not get enough cashback to cover the legal fees but YMMV.

 

Kiwibank use to do their own legal work for a straightforward mortgage (non-trust or guarantees involved) but I don't think they deal with brokers anymore.

 

 

 

 

 

 

 

 


Meow
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  Reply # 2094784 21-Sep-2018 21:56
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I am going to recommend talking to a Mortgage adviser at ANZ on this one. They are very competitive and can often do a deal to keep you.







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Ultimate Geek
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  Reply # 2094788 21-Sep-2018 23:05
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michaelmurfy:

 

I am going to recommend talking to a Mortgage adviser at ANZ on this one. They are very competitive and can often do a deal to keep you.

 

 

We can't find the contract or other signed document for this particular fixed Mortgage. And based on the information shared here, I think I am going to take my brokers word and not trying to switch bank until next year.

 

I am getting a fixed rate of 4.09% for 1 year, I was hopping for a better rate but think it's reasonable.




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Ultimate Geek
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  Reply # 2094789 21-Sep-2018 23:06
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logo:

 

pstar008:

 

Aredwood: Should be no problem to change mortgage brokers. But if you mean refinance the mortgage to a different bank, that will be a lot more difficult.


You would also need to be getting good savings from a different bank, to justify paying the legal fees involved in a refinance.

 

Think again, probably not going to switch mortgage broker, been with them for 6 years and have no issues at all, but will keep my options open next time when switch bank.

 

Yes, I am really think about switch bank if I can get better rate, but if I am stuck with my current bank due to the cashback offer, I doubt that they will offer the best rate in order to keep me.

 

Legal fees for refinance, I would assume it will be covered by the new bank, or are they not even cover legal fee nowadays?

 

 

 

 

It won't be in your loan contract but you would have signed a deed of acknowledgement or similar for your cashback which ties you in for a set period.

 

ANZ use to be 2 years but changed to 3 years a while back - probably 2-3 years ago so I wouldn't be too surprised if you are on a 3 year agreement. Most (if not all) banks are now 3 years to prevent churn. 

 

If you go to a new bank they may offer you a cashback to help with legal costs. Typically if your mortgage is under $500k you might not get enough cashback to cover the legal fees but YMMV.

 

Kiwibank use to do their own legal work for a straightforward mortgage (non-trust or guarantees involved) but I don't think they deal with brokers anymore.

 

 

Thanks, all are good infor :D


Meow
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  Reply # 2094795 21-Sep-2018 23:40
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pstar008:

 

We can't find the contract or other signed document for this particular fixed Mortgage. And based on the information shared here, I think I am going to take my brokers word and not trying to switch bank until next year.

 

I am getting a fixed rate of 4.09% for 1 year, I was hopping for a better rate but think it's reasonable.

 

You should be able to find this in ANZ Internet Banking under the Documents Library otherwise a personal banker can get it for you, or you can phone them and get it via email (normally anyway). If you're leaving because of a better rate then it is worth trying to negotiate with your current bank as they'll normally match or beat it to keep you as a customer.





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  Reply # 2094812 22-Sep-2018 08:21
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Theres a dead of acknoweldgement you would have signed that would have shown when the cash back period offically ends, call your bank directly (not the broker) and ask for this. 

 

 

 

The broker will be dragging you along because they also have to keep you with the said bank for X period of time before they get paid. 

 

 

 

 




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Ultimate Geek
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  Reply # 2094906 22-Sep-2018 10:48
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Thanks for the good infor and advices, can't get hold of the Banker we normally deal with, decided probably just call the 0800 number. And the homeloan person from the ANZ is really helpful.

Yes, according to him as he checked the doc for me, I need waiting another year until I can switch bank free. Or on second thought, should I still ask for the acknowledgement anyway? The online banking website don't have that document.

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  Reply # 2094908 22-Sep-2018 11:07
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pstar008: Thanks for the good infor and advices, can't get hold of the Banker we normally deal with, decided probably just call the 0800 number. And the homeloan person from the ANZ is really helpful.

Yes, according to him as he checked the doc for me, I need waiting another year until I can switch bank free. Or on second thought, should I still ask for the acknowledgement anyway? The online banking website don't have that document.


You may well find that you would only have to repay a pro rata portion of the cash-back received - not the full amount originally received. IMO you should check that.

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Uber Geek
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  Reply # 2094937 22-Sep-2018 12:47
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pstar008:

 

I am getting a fixed rate of 4.09% for 1 year, I was hopping for a better rate but think it's reasonable.

 

 

As a comparison, we got offered 3.99 for 1 year with our bank (Kiwibank); we elected to take 4.19 for 2 years (because we like to have different loans coming due at different times to spread the risk of rate rise shock).




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Ultimate Geek
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  Reply # 2094952 22-Sep-2018 14:13
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jonathan18:

 

pstar008:

 

I am getting a fixed rate of 4.09% for 1 year, I was hopping for a better rate but think it's reasonable.

 

 

As a comparison, we got offered 3.99 for 1 year with our bank (Kiwibank); we elected to take 4.19 for 2 years (because we like to have different loans coming due at different times to spread the risk of rate rise shock).

 

 

Thanks for that infor, appreciate that. Are you in the range of 300-400K mortgate? It's just happens that Kiwi and ANZ are advertising the same official 1 year rate at the moment, I would think ANZ should be able to match that.

 

I think 3.99 is a really great rate for Kiwi.


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