# CC balance transfer on mortgage?



## Tyler Durden (15 February 2012)

Just wondering if there is _any_ way of doing an interest free balance transfer on at least part of your outstanding mortgage amount?

I know the interest free period is limited, but I was thinking perhaps once you got an amount onto a credit card, then you could transfer it to the next interest free credit card when the period expires. The problem is getting the mortgage amount onto the credit card in the first place.

Anyone think this would be possible?


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## skc (15 February 2012)

Tyler Durden said:


> Just wondering if there is _any_ way of doing an interest free balance transfer on at least part of your outstanding mortgage amount?
> 
> I know the interest free period is limited, but I was thinking perhaps once you got an amount onto a credit card, then you could transfer it to the next interest free credit card when the period expires. The problem is getting the mortgage amount onto the credit card in the first place.
> 
> Anyone think this would be possible?




1. Cash advance on existing credit card A.
2. Put cash in mortgage account.
3. Transfer credit card A balance to new interest free credit card B.


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## Knobby22 (15 February 2012)

skc said:


> 1. Cash advance on existing credit card A.
> 2. Put cash in mortgage account.
> 3. Transfer credit card A balance to new interest free credit card B.




Very tempting.


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## Tyler Durden (15 February 2012)

skc said:


> 1. Cash advance on existing credit card A.
> 2. Put cash in mortgage account.
> 3. Transfer credit card A balance to new interest free credit card B.




But I am pretty sure the transaction costs of the cash advance would be greater than any savings in interest?


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## skc (16 February 2012)

Tyler Durden said:


> But I am pretty sure the transaction costs of the cash advance would be greater than any savings in interest?




What transaction cost? 

Yes there is interest charge on the cash advance immediately so you need to have your credit card B ready close to approval. Time it well to minimize the interest. 

Say you are charged 18% on cash advance for 2 weeks but you save 7% for 6 months. Do the sums to decide whether it is worth your while or not.


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## Tyler Durden (16 February 2012)

skc said:


> What transaction cost?




Everytime you do a cash advance, a % of the amount you withdrawn is charged as a fee.


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## skc (16 February 2012)

Tyler Durden said:


> Everytime you do a cash advance, a % of the amount you withdrawn is charged as a fee.




Never used cash advance in my life so wouldn't know any better.

If there's a one-off fee then you might need to keep rolling credit card B to new interest-free credit card C to make it worthwhile.


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## Tysonboss1 (16 February 2012)




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## village idiot (16 February 2012)

no need to get cash advance on card A, just do all your spending on it, then instead of paying it off , use the funds to pay down mortgage instead. Then bal transfer from card A to card B. repeat as neccessary


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## Tysonboss1 (16 February 2012)

village idiot said:


> no need to get cash advance on card A, just do all your spending on it, then instead of paying it off , use the funds to pay down mortgage instead. Then bal transfer from card A to card B. repeat as neccessary




And hope you are in control of your spending so you don't end up paying $1000 of your mortgage and then spend $1100 on your card thinking you've got it all worked out.


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## cynic (16 February 2012)

A few years ago I could have advised the perfect solution to your problem. Back in 2009/2010 I was able to regularly transfer monies from my credit card into my savings account via one of my CFD broker accounts. The credit side of the transaction was treated as a purchase by my card provider. I earnt quite a few awards points whilst at the same time annoying the heck out of my CFD broker (whom promptly changed their policy on credit card funding arrangements and started applying a fee to recover the relevant merchant charges). Anyway, it was fun whilst it lasted.

You could always shop around and see if there are any other "generous" brokers out there.

Tysonboss, it may surprise you to learn that not all c/card users are financially illiterate morons. Some are extremely disciplined and know how to avail themselves of every recognisable opportunity to save additional money (a mindset that I've observed in several multi-millionaires with whom I have been acquainted over the years).


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## Tyler Durden (16 February 2012)

village idiot said:


> no need to get cash advance on card A, just do all your spending on it, then instead of paying it off , use the funds to pay down mortgage instead. Then bal transfer from card A to card B. repeat as neccessary




That would work for a small amount I guess. But I am thinking of an amount around $5,000-$10,000. The difficult thing, then, with your strategy would be that I would need to spend $5,000 within the 55 day interest free period.



cynic said:


> A few years ago I could have advised the perfect solution to your problem. Back in 2009/2010 I was able to regularly transfer monies from my credit card into my savings account via one of my CFD broker accounts. The credit side of the transaction was treated as a purchase by my card provider. I earnt quite a few awards points whilst at the same time annoying the heck out of my CFD broker (whom promptly changed their policy on credit card funding arrangements and started applying a fee to recover the relevant merchant charges). Anyway, it was fun whilst it lasted.




Very interesting, thanks for sharing.

I got an idea as I was walking home tonight. What if I have a balance of $1,000 on credit card A. I obtain credit card B and do a balance transfer of $5,000. Bank B writes a cheque of $5,000 to bank A, so now my bank A credit card balance is a debit of $4,000.

I go to bank A to withdraw my $4,000 - now I have an interest free loan of $4,000, avoiding all the transaction fees and immediate accruing interest!

Have I overlooked something, or would that actually work? I know there is a NSW criminal offence of "obtain benefit by deception", so I am now sure if this would be legal (because theoretically you are telling bank B you have a credit card balance of $5,000 with bank A).


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