Best Home Loan Cashback Offers & Deals
What is a Home Loan Cashback Offer?
A home loan cashback offer, sometimes referred to as a mortgage cashback offer, is an incentive offered by lenders to entice borrowers to refinance or switch their home loans. These offers typically involve a lump sum cash payment made directly to the borrower's bank account or applied as a reduction to the home loan balance after settlement.
Home loan cashback offers are common in the Australian home loan market, often promoted as a way to sweeten the deal for potential borrowers. These deals can range from $1,000 to $10,000, depending on the lender, loan amount, and specific eligibility criteria. In some cases, these are also called cashback home loans, as they can provide an immediate financial benefit once the new loan settles.
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Best Home Loan Cashback Offers
ANZ
$2,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $250,000 or more
- Loan-to-value ratio (LVR) requirement: 80% or lower
- Other eligibility criteria: Refinance only
Offer Expiry: Offer valid until further notice.
Newcastle Permanent
$2,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $250,000 up to $499,999
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
- Other eligibility criteria: PAYG Applicants Only
Offer Expiry: Offer valid until further notice.
$3,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $500,000 or more
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
- Other eligibility criteria: PAYG Applicants Only
Offer Expiry: Offer valid until further notice.
IMB Bank
$2,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $250,000 up to $499,999
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
- Purchases must settle within 180 days of application
Offer Expiry: Offer valid until further notice.
$3,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $500,000 up to $749,999
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
- Purchases must settle within 180 days of application
Offer Expiry: Offer valid until further notice.
$4,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $750,000 or more
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
- Purchases must settle within 180 days of application
Offer Expiry: Offer valid until further notice.
ME Bank
$2,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $400,000 up to $699,999
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
- Must settle within 120 days of application
$3,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $700,000 or more
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
- Must settle within 120 days of application
Offer Expiry: Offer valid until further notice.
Greater Bank
$2,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $250,000 up to $499,999
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
- Available to first eligible loan only
$2,500 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $500,000 or more
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
- Available to first eligible loan only
Offer Expiry: Offer valid until further notice.
Bank Vic
$2,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $200,000 up to $349,999
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
Offer Expiry: Offer valid until further notice.
$3,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $350,000 or more
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
Offer Expiry: Offer valid until further notice.
Credit Union SA
$2,000 Cashback
Terms of the Cashback Offer:
- Loan amount requirement: $300,000 or more
- Loan-to-value ratio (LVR) requirement: 80% LVR or lower
Offer Expiry: Offer valid until further notice. Return to Banks
Why Do Lenders Offer Home Loan Cashback Deals?
Lenders use home loan cashback offers as a strategic marketing tool to attract new borrowers and retain existing ones. The competition in the home loan market is fierce, and cashback incentives help lenders stand out from the crowd.Here's why lenders use cashback offers:
- Attract New Customers: Cashback offers are a compelling reason for borrowers to switch lenders, especially when coupled with competitive interest rates.
- Retain Borrowers: Some lenders offer cashback deals to current customers to prevent them from refinancing with a competitor.
- Market Differentiation: With so many lenders offering similar products, cashback deals are a quick way for a bank to set itself apart.
- Increase Loan Book Size: Attracting high-value borrowers increases the lender’s total loan book, which is essential for their business growth.
How Can Cashback Offers Benefit Borrowers?
For borrowers, refinance cashback incentives or cashback home loans can provide significant financial benefits, particularly for those refinancing or switching to a lower interest rate. Here’s how cashback deals help borrowers:- Offset Refinancing Costs: Refinancing a home loan can come with costs like mortgage discharge fees, valuation fees, and new lender application fees. A cashback offer can offset or even completely cover these expenses.
- Boost Your Cash Flow: A lump sum cashback can provide immediate cash, which borrowers can use for renovations, debt consolidation, or savings.
- Reduce Loan Principal: Some borrowers use their cashback payment to reduce the principal on their home loan, which can lower overall interest costs.
- Sweeten the Refinancing Deal: When combined with a lower interest rate, cashback deals make refinancing even more appealing.
Are Cashback Offers Worth It?
The appeal of a refinance home loan cashback is clear, but is it worth it? The answer depends on the borrower's unique situation. Let’s explore the benefits and potential pitfalls.Example of Refinancing Savings
Consider this example:
- Current Loan Amount: $600,000
- Current Interest Rate: 6.38%
- New Interest Rate After Refinancing: 5.99%
- Loan Term: 25 years (Principal and Interest repayments)
Monthly Repayment Comparison
- Current Loan Payment: $3,880/month
- New Loan Payment: $3,724/month
By switching to a lower rate, the borrower would save $156 per month or approximately $1,872 per year. Over a 25-year period, this equates to a massive $46,800 in savings.
Now, add a $4,000 cashback offer into the mix. This cashback could help cover refinancing costs, pay down the principal, or even be used for household expenses.
The Role of Mortgage Brokers Like Craggle
Lenders use cashback offers as a way to capture new borrowers, but it’s not always the best deal for everyone. That’s where a Mortgage Broker like Craggle can help.
Mortgage brokers operate under the Best Interest Duty, meaning they are legally required to act in the best interests of the borrower. They can help borrowers assess whether a home loan cashback offer is truly beneficial when factoring in interest rates, fees, and long-term costs.
Here’s why working with a broker like Craggle is a smart move:
- Unbiased Advice: Brokers aren't tied to a single lender, so they compare offers across multiple lenders.
- Expert Guidance: Brokers handle the entire refinancing process, from assessing eligibility to final settlement.
- Cost Transparency: Brokers identify potential costs like discharge fees, valuation fees, and application fees.
- Best Interest Duty Compliance: Unlike banks, brokers are legally required to act in your best interest, ensuring you get the most suitable deal.
Costs of Refinancing a Home Loan
While cashback offers may seem appealing, there are associated costs with refinancing a home loan. Here are the potential expenses to consider:- Discharge Fees: Charged by your current lender to close the loan, typically between $150 and $350.
- Application Fees: Charged by the new lender for setting up the loan, which can range from $200 to $600.
- Valuation Fees: The new lender may require a valuation on your property, with costs between $200 and $700.
- Break Fees: If you are currently on a fixed-rate loan, break fees can be significant, especially if interest rates have fallen since you locked in your rate.
The Role of Mortgage Brokers Like Craggle
Lenders use cashback offers as a way to capture new borrowers, but it’s not always the best deal for everyone. That’s where a Mortgage Broker like Craggle can help. Mortgage brokers can evaluate a home loan refinance offer for its true value by considering the overall package, including interest rates, fees, and long-term financial goals. This ensures that borrowers make informed decisions and don’t just focus on the immediate cashback.
How Mortgage Brokers Add Value:
- Unbiased Advice: Brokers assess multiple lenders to find the most competitive offers, including cashback deals and refinance options.
- Expert Guidance: From understanding the terms of a cashback deal to navigating refinancing costs, brokers provide end-to-end support.
- Cost Transparency: They identify hidden fees in refinancing that could offset the benefits of a refinance cashback offer.
- Best Interest Duty Compliance: Brokers prioritise the borrower’s financial goals, ensuring the best possible outcome.
Conclusion
A home loan refinance offer, especially one paired with a cashback incentive, can be an effective strategy to reduce refinancing costs and improve your financial position. However, borrowers must weigh all associated costs and consider their long-term goals. Mortgage Brokers like Craggle can help you navigate the complexities of refinancing, ensuring you maximise the benefits of cashback home loans while minimising hidden expenses.
Borrowers should consider the role of Mortgage Brokers like Craggle, who operate under the Best Interest Duty, providing peace of mind that the advice given is in the borrower's best interests. Craggle can compare cashback home loans, navigate eligibility criteria, and help you understand the real costs associated with refinancing.
When used wisely, refinance home loan cashback deals can be a valuable tool to improve your financial position. But with so many offers in the market, it’s essential to make an informed decision. Whether you’re seeking to lower your interest rate or secure one of the best home loan cashback offers, working with a broker can ensure you get the best possible outcome.
Home Loan Cashback Frequently Asked Questions
What is a cashback home loan?
A cashback home loan is an offer where the lender provides a cash payment when you refinance or switch your home loan to them.
How do I qualify for a cashback offer?
You’ll typically need to meet minimum loan size, LVR limits, and settle the loan within a set timeframe. Each lender’s criteria are different.
Are cashback refinance offers worth it?
They can be, especially if paired with a lower interest rate. But consider fees, break costs, and your financial goals before deciding.
Can I get a cashback offer as a first-time home buyer?
Cashback offers are usually for refinancers, but some lenders may extend offers to first-time buyers.
Can a mortgage broker get me a better cashback offer?
Yes, brokers have access to multiple lenders and can find cashback offers that suit your situation.
How much can I get from a cashback offer?
Offers range from $1,000 to $10,000, depending on the lender and loan size.
Disclaimer: The opinions expressed in this article are strictly for general informational and entertainment purposes only and should not be taken as financial advice or recommendations. While every effort is made to ensure the listed offers are accurate, we make no guarantee regarding their accuracy, completeness, or availability.