ITT: How to pay fuck-all mortgage interest

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TL;DR
> Use interest-free balance transfer credit cards to pay down mortgage principal so that mortgage interest is basically nil

Assumptions:
> Lenders in Aussieland want borrowers to max out credit cards
> This /positively/ affects credit scores
> user has self-discipline and won't piss "muh free moneys" up the wall instead of making payments

Steps:
>01. Take out a 4.25% p.a., $100,000 mortgage from Bank A with unlimited redraw facility and $8/mth account fee (repayments $500/mth).
. Buy a diamond ring from your buddy, Saul the JEWeller for $10,000 and pay using Bank A credit card (55 days interest-free).
. Sell the ring back to Saul for $10,000 (receive cash).
>04. Have $10K genuine debt in the Bank A credit card account and $10K in cash.
— There is nothing illegal about repeatedly buying and selling jewellery.
— I would not actually perform actions 02 and 03 (resulting in 04) because other banks don't care whether the Bank A credit card is in debt.
>05. Deposit $10K cash into the mortgage.
>06. Sign up to an 18-month interest-free $10K-limit balance transfer card with 0% BT fee and $0 annual fee (Bank B).
>07. Instruct Bank B to transfer the $10K to the Bank A credit card.
— Bank A credit card is now paid off in full, within the 55-day window, incurring no interest.
— Bank B credit card is now $10K in debt.
— Mortgage is now prepaid to the tune of $10K.

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>08. Repeat actions 2-8, replacing Bank B with 9 more banks (Banks C to K).
— Banks B to K credit cards are now each $10K in debt.
— Total credit card debt is $100,000.
— Mortgage is now prepaid to the tune of ~$99,000 (careful not to pay off the full mortgage amount; keep $1,000 in reserve).
— Mortgage principal balance is down around $1,000. Monthly interest on this balance is negligible – $1,000 * 4.25% / 12 = $3.54/mth.
>09. Every month, redraw $5000 from the mortgage (drawing down on the ~$99,000 prepayment) and make a $500 payment to each credit card (Banks B to K).
— You can actually redraw less than this as most cards only require minimum payment of 2-3% of the balance per month.
>10. Every month, pay $500 into the mortgage (i.e. like a normal person would) to reduce the remaining principal.
— Due to the tiny principal, standard monthly payments of $500 go almost entirely to paying down the principal, with only ~$3-$10 lost to interest.
— Total interest saved in the first year, accounting for all fees, is $2,997.83. Savings will reduce in outyears due to the increasingly reduced principal.
>11. Just before the end of each BT card's interest-free period (e.g. 18 months), redraw however much is outstanding from the mortgage, pay off the BT card balance and close the BT card.
>12. Repeat actions 02, 03 and 05-07 (or just 05-07, in the revised order of 06-07-05) with another lender (e.g. Bank L) and start the cycle again.
>13. Continue for as long as you want to keep paying negligible mortgage interest.

"A friend" has been doing this for the past 8 years; "he" only wishes "he'd" started doing it sooner.

Explain why you aren't doing this. Protip: You can't.

Wait im brainlet asf.

How are you paying off these credit cards? You cant just keep opening cards, theres not that many good bt options and they all charge 3% transaction fees.

Just buy a house in cash.

Ive never heard of unlimited redraw facility here in burgerland maybe thats my problem, we dont have that.

But i appreciate the quality post rather than the usual cryptofagging on biz these days

I should've explained more. Choose BT cards that don't charge fees (they do exist and are plentiful enough here).
>How are you paying off these credit cards?
... With the money they give me. Get ___ from Bank B, give some of ___ back to Bank B every month. It's really that simple.

>paying credits with more credits
Genius.

>Ive never heard of unlimited redraw facility here in burgerland maybe thats my problem, we dont have that.
It's only limited insofar as the amount you've paid off in advance.
>can't into reading
I feel for you user.

This stops working once the banks refuse to let you open more cards do to your credit score.

t. someone who opened 2 cards to do this and can't open a third

That sucks. Doesn't happen here, as per OP:
> Lenders in Aussieland want borrowers to max out credit cards
> This /positively/ affects credit scores

Yea but im pretty sure the only way to take money out of a mortgage in burgerland is refinance which costs 5 grand and requires a rectal scan.
And i havnet seen a single card in burger land that is 0% transfer fees. Best ive seen is 3% transfer fee 0% interesr for 22 mo

22 months is good; the best I've had is 24 months, that was a $24,000 card with 0% BT fee and $124 annual fee.
All mine are 0% BT fee cards, with low or no annual fees; I wouldn't do it otherwise.

Sounds retarded op. In burgerland I take heloc to pay my credit cards so I only pay ~4% instead of 18%. Your scenario will lead to a collapse of your economic system eventually. I look forward to buying the dip

20y.o brainlet here

Appreciate the post OP very interesting

Don't really understand it fully so far but I'll keep reading it again and again

will ask more questions soon

>heloc
?

Home equity line of credit

If you have enough equity in your property then you can take a loan out using the equity as collateral. They typically have mortgage-like rates and you can find some with no restrictions, so you can use the money for whatever

Nice. Saving 14% on CC debt is better than nothing.
>Your scenario will lead to a collapse of your economic system eventually.
How? Should any of the lenders take issue with it, I can just pay them out. They won't, though, because none of the steps is illegal.

The easiest way to think about it is to use just one BT card, not ten. Get that straight in your head first.
Once that makes sense to you, you'll see how it's easy to just add more cards to the mix.

If I do this, can I still deduct mortgage interest from income tax?
>t. Netherlands

yeah its starting to make sense now that i looked up what BT credit cards are and etc.

It's more to do with not familiar with what's possible in the financial system. Will ask questions soon

i'm pretty sure you can only claim what you can prove you've actually incurred/paid, dutchy.
funnily enough, i cheekily deducted my mortgage interest on my income tax return this past july. time will tell if the man demands that i pay it back.

finally understand what you're talking about now OP, interesting stuff.

How long does it take to open up 10 cards at once? Did your friend take a day off to settle all those paperwork?

also did you friend use any kind of pen or pencil to fill out the papers?

i've used pencils before but i prefer pens even though they have less colors i feel the ink has a more serious look to it.

What coin is this?

He started with just one, but after a few months realised there was no reason not to do another one, and another one... and so on. Applications are online these days and they take between 2 days and ~3 weeks. Usually need to email or upload payslips etc.
don't be mean. this is Veeky Forums. you must be new.

you're right im sorry.

>Usually need to email or upload payslips etc.
Adding to this, you can make up most of the shit like what your house is worth, how many other loans or cards you have (e.g. "none lol")... as long as you make the payments – from the money they've already given you – you can't go wrong.