Anyone using Macquarie Bank?
- Thread starter onion33
- Start date
Macquarie also needs to employ a solicitor for their side of the transaction. That's what you're paying for.
Plenty of other lenders also have similar fees.
Plenty of other lenders also have similar fees.
Normal fee for most of Macquarie's standard products.
Yes, Macquarie has a product which earns QFF points. You get some points for signing up, 1000 points per month and additional points after (I think) 3 and 5 years.
That's correct. It's specific only to the Frequent Flyer loan. Do note that it is a slightly higher interest rate for this product.
Yep - it turns out to be a pretty good deal for smaller loan amounts (sub 500k). There's quite a few old posts on here about it. 
Works for me personally - love the idea of being rewarded for my own investments. Plus, the extra 0.05% is deductible.
http://somersoft.com/forums/showthread.php?t=99492&highlight=Macquarie
Works for me personally - love the idea of being rewarded for my own investments. Plus, the extra 0.05% is deductible.
http://somersoft.com/forums/showthread.php?t=99492&highlight=Macquarie
Hi Onion 33,
I've got two loans with Macquarie and a few others with other lenders. Most charge similar fees and I think this fee you have been quoted sounds reasonable and normal.
Cheers.
Peter Tersteeg did an analysis on MacBank QF loan on a thread a while back and worked out in the banks favour due to the higher rate applied so nothing more than clever marketing.
Hi Collin,
On reviewing that analysis it turns out my math was wrong. For larger amounts the value is dubious, but there is reasonable value in it for less than $300k. Probably not for $500k+.
On the analysis done in an earlier thread, the points benefit > cost benefit for loans upto around 500-600k.
I'm not sure that included the taxation of interest either.
I'm not sure that included the taxation of interest either.
Check out my (lengthy) posts in the thread - it can DEFINITELY work in your favour.
To requote part of one of my posts:
Like most of these sorts of programs, there is a free lunch, if you can work out how to optimise it. But the vast majority of people don't, and end up subsidising the people who do. And the rest is profit for the company
Much of this has already been said - but i've just ran through the maths myself and clarify the numbers.
My research tells me that each Qantas FF point is roughly worth about 75c. So 10000 points is worth $75 (or 7500c).
On a 500k mortgage, your paying an extra 0.05% in the interest rate, which is equivalent to $250 p/y, or $1250 over 5 years.
The total points value on a 500k mortgage is 160,000 after 5 years - worth approximately $1200 after 5 years.
So for a PPOR/no tax benefit purchase, on 500k loan amount, the interest saving > the cost of the points.
For an investment purchase, assuming that interest is deducted at 34c on the dollar, on a 500k investment, the interest cost is $825. Meaning your up $375 over the 5 years.
For an investment loan, at 34c on the dollar interest deductions - the points >> the after interest cost for a loan mark close to $1 million.
The points on a $1m loan is 210,000 over 5 years. Worth about $1575. After tax interest cost is $1650...so you'd be marginally behind on this loan amount.
Of course, this analysis is on the advertised rates and ignores any greater discounting that Macquarie are more likely to do on loans without the points.
Cheers,
Red
My research tells me that each Qantas FF point is roughly worth about 75c. So 10000 points is worth $75 (or 7500c).
On a 500k mortgage, your paying an extra 0.05% in the interest rate, which is equivalent to $250 p/y, or $1250 over 5 years.
The total points value on a 500k mortgage is 160,000 after 5 years - worth approximately $1200 after 5 years.
So for a PPOR/no tax benefit purchase, on 500k loan amount, the interest saving > the cost of the points.
For an investment purchase, assuming that interest is deducted at 34c on the dollar, on a 500k investment, the interest cost is $825. Meaning your up $375 over the 5 years.
For an investment loan, at 34c on the dollar interest deductions - the points >> the after interest cost for a loan mark close to $1 million.
The points on a $1m loan is 210,000 over 5 years. Worth about $1575. After tax interest cost is $1650...so you'd be marginally behind on this loan amount.
Of course, this analysis is on the advertised rates and ignores any greater discounting that Macquarie are more likely to do on loans without the points.
Cheers,
Red
Thanks for that earlier post BLTN. My apologies to rehash your work. You were correct.
Check out my (lengthy) posts in the thread - it can DEFINITELY work in your favour.
To requote part of one of my posts:
Like most of these sorts of programs, there is a free lunch, if you can work out how to optimise it. But the vast majority of people don't, and end up subsidising the people who do. And the rest is profit for the company
And don't forget the taxation aspects of receiving the points:
PS LA 2004/4 (GA)
SUBJECT: Income tax and fringe benefits tax - rewards received under consumer loyalty programs.
http://law.ato.gov.au/atolaw/view.htm?docid=PSR/GA20044/NAT/ATO/00001
and
TR 1999/6 and TD 1999/34.
PS LA 2004/4 (GA)
SUBJECT: Income tax and fringe benefits tax - rewards received under consumer loyalty programs.
http://law.ato.gov.au/atolaw/view.htm?docid=PSR/GA20044/NAT/ATO/00001
and
TR 1999/6 and TD 1999/34.
Thanks for that earlier post BLTN. My apologies to rehash your work. You were correct.
No worries - I love this kind of stuff.
I love working out whether such programs are just marketing fluff or can actually work out in favour of the customer.
For the most part, nearly all of these programs are as I described - they DO work, often quite well, but only for those people that actively try to optimise them. For most people, the benefit is minimal (but is perceived to be greater than it actually is).
It's the same with credit cards - you can get some awesome free cards with amazing benefits (or some with a small annual fee, but even better benefits) without paying a cent of interest. It really is a free lunch. But most people don't pay their credit card bills on time, or don't utilise their cards in the most efficient way and end up paying additional fees, or not optimising the rewards of the card.
Depends a bit on how you value a FF point. For a loan of $300k, the package will cost an extra $4500 over 3 years. This loan would earn 91,000 points over that time.
0.05% extra interest on $300k loan over 3 years = $450
10,000 points for each $100k = 30,000 points
1000 points per month = 36,000 points
3 year bonus = 25,000 points
Total: 91,000 points
In the Qantas store 44k points will buy you a Galaxy Fit watch. They retail for $249 at JB HiFi.
For flights 18,000 points gets an economy flight from Melbourne to Perth. Today the mid range cost of this flight with Qantas is about $300-$400.
I'm not cherry picking, these were just the first two things I came across. This is worthwhile but only just.
For a loan of $600k you'd earn an extra $30,000 points (121,000 points in total), but you'll pay an another $450 ($900 extra) for a loan of $600k.
The value drops off very quickly after $300k and you've got to be selective after that price point. No doubt you can still get a good deal if you're careful, but let's face it, people aren't.
