A NUMBER OF YEARS AGO, in the early days of online casinos, some sharp individuals were able to make a quick dollar by taking advantage of "welcome bonuses" being offered in this new and competitive industry.
Taking Advantage of the System
Here is how it worked.
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You would sign up to the casino and deposit your first amount with them. The casino would then match your deposit with the agreed bonus. Next, you would need to place a certain number of bets to qualify.
For those who know their card games, the House Advantage on playing blackjack was only very small. Therefore, by playing a prudent game of Blackjack, you should only lose (on average) just a small portion of your bonus.
The secret then was to simply "rinse and repeat" the whole exercise.
So, where are we going with this talk about gambling, in an article about Finance?
Currently, the banks are fighting for owner-occupied loans (rather than investment loans). And with such strong competition, a number of banks have begun providing "welcome bonuses" of up to $2,000 for you to simply refinance your existing home loan.
Refinancing for Free Money
The process is simple:
- Most loan exit fees can be negotiated away;
- Many banks have no upfront fees for switching; and
- There are low interest-rate specials on offer.
For those who qualify, the welcome bonus is effectively FREE money. And that's a rare commodity these days, indeed.
Obviously, you still need to ensure that your loan is properly structured. Also, ensure that you are receiving the right advice for your situation. However, getting in touch with your finance broker for a loan review may be well worthwhile given the current environment.
Bottom Line: Refinancing could well help you release some additional equity from your home -- which could then be invested in commercial property.
