Pay stamp duty by credit card

[Marty McDonald]

Take one of your existing credit cards and pay it off so it has a zero balance (call it "CARD #1").

Then apply for a low rate balance transfer credit card ("CARD #2") with a $20k limit and as part of the application, do a $15k balance transfer to CARD #1 (NB: Most cards only let you balance transfer up to a certain % of the card limit).

CARD #1 will then have a credit balance of $15k which you can then withdraw to your bank account (should be no cost) and you can then use the cash to pay the stamp duty.

You then have a $15k debt on CARD #2, but the Balance Transfer interest rate will be way cheaper than a personal loan and cheaper than paying the Stamp Duty by credit card at your Purchases interest rate.

There are a range of low rate balance transfer deals out there at the moment, from 0% for 9months to 5.9% for 24 months and various in between. See here:-

http://www.creditcard.com.au/balance-transfers/duration/desc

Really just up to you to work out how quickly you could clear the debt on CARD #2. If you think it will take longer than the balance transfer rate period, look for a balance transfer card that reverts to the PURCHASE interest rate, not the CASH ADVANCE rate at the end of the balance transfer rate period.

Good luck.

Awesome thinking Mike R. but credit card application scoring is very sensitive to recent credit file activity and a "real mortgage application" shortly before the credit card one would be a potential deal killer me thinks. Worth a shot perhaps.

An easier way would surely be to go with another lender, sounds like a deal to me and CBA are notorious for their harsh scoring of 95% deals. Suncorp or ING perhaps to name a few.

 

[Rolf Latham]

Awesome thinking Mike R. but credit card application scoring is very sensitive to recent credit file activity and a "real mortgage application" shortly before the credit card one would be a potential deal killer me thinks. Worth a shot perhaps.

An easier way would surely be to go with another lender, sounds like a deal to me and CBA are notorious for their harsh scoring of 95% deals. Suncorp or ING perhaps to name a few.

Hi Proper T

Speak with Marty.......he is a High LVR specialist !


ta

rolf

 

[MikeR]

Awesome thinking Mike R. but credit card application scoring is very sensitive to recent credit file activity and a "real mortgage application" shortly before the credit card one would be a potential deal killer me thinks. Worth a shot perhaps.

I get the sense that Citibank would just about fall over themselves to give anyone a credit card, recent new mortgage or not, but that's just my perception as a casual observer (not in the industry).

Anyway, just a thought. It also works with your existing cards because eventually one of them is bound to offer you a low rate balance transfer deal.

 

[Aaron_C]

The credit card rollover thing works really well in places like the USA because they have a positive credit scoring system - more good loans means you are a better borrower. Here we have a 'neutral-until-something-bad-happens' system.

 

[wylie]

Question for the brokers. When we applied for our last loan, we either closed or reduced the limit to almost nothing at the bank we were with in order to maximise our borrowings with the bank we went to.

We HAD to have a credit card with our package (no annual fee and I get rewards) and our broker (from memory) applied for the card after the loan was approved (I think - either that or with the application - but I seem to recall it was AFTER the loan was approved).

Anyway, imagine our surprise, after closing the limit of (?) probably $5000 or so in order to get the loan approved, that we are issued a card with a $24K limit. I was gobsmacked.

Is this unusual?

 

[Terry_w]

Common Wylie - don't ask me to explain the logic of it!

 

[Marty McDonald]

was the lender homeside?

 

[Aaron_C]

Very common. Doesn't make sense but yeah....lol

 

[wylie]

was the lender homeside?

Westpac...

 

[Jake D]

Speak with Marty.......he is a High LVR specialist !

Hey Marty, Was having lunch with two mates who work for NAB, they were bragging about loans they saw getting approved where LVR was 90% and NAB were waiving LMI if you agreed to P&I and LVR got under 80% in 3 years. Do you know anything about this?

 

[Aaron_C]

Hey Marty, Was having lunch with two mates who work for NAB, they were bragging about loans they saw getting approved where LVR was 90% and NAB were waiving LMI if you agreed to P&I and LVR got under 80% in 3 years. Do you know anything about this?

Yeah..it's for doctors.

 

[Jake D]

Ah, I see. How annoying. And discriminatory.

 

[Jake D]

Also, a lightbulb just came on, one of the two guys works specifically for MedFin, so that would probably be why he sees these deals being made.

 

[simron]

Just wanted to ask, regarding the credit card transfer scenario; can you actually do this? I assumed that you would have to technically have a balance/debt to transfer and if the balance is $0 than there is no debt to transfer over.

 

[Rolf Latham]

Also, a lightbulb just came on, one of the two guys works specifically for MedFin, so that would probably be why he sees these deals being made.

Medfin is actually a really poor option for Medico and allied

Others will do 90 no lmi on io with nil product restrictions......

Pre gfc, NaB hsl was doing 90 no lmi on pi 17 years for anyone that could fog up a mirror and had clear credit

Ta

Rolf