Navigating the world of home loans can be tricky, especially with the array of financial incentives on offer. Among these incentives, cashback offers are becoming increasingly popular. Let’s break down what these offers entail, how they work, and what you should consider before jumping in.
What Is a Home Loan Cashback Offer?
A cashback offer on a home loan is a financial incentive provided by lenders to attract new customers. Essentially, lenders provide a sum of cash to borrowers who choose to switch their home loan to them. While these offers are primarily targeted at existing homeowners looking to refinance, they sometimes extend to new home purchasers and first home buyers as well.
Why Do Lenders Provide Cashback Offers?
The rationale for lenders is straightforward: more customers equate to more profits. By offering cashback, lenders can stand out in a competitive market and entice customers who might have chosen another financial institution. It’s a classic marketing strategy to expand the customer base.
Eligibility Criteria for Cashback Offers
To be eligible for a cashback offer, there are often specific requirements you must meet. In most cases, you have to:
- Be a New Customer: You must be transferring your loan from another lender, not just refinancing with your current one.
- Have a Minimum Mortgage Amount: Typically, there’s a lower limit on the mortgage size, such as $250,000.
- Be Refinancing: These offers are more common when you are refinancing an existing mortgage.
- Have a Loan-to-Value Ratio (LVR) <80%: You should have an LVR of less than 80%, though some lenders may allow up to 90% or even 100%.
Upon meeting these criteria and loan approval, the cashback is usually transferred to your account or deducted from your mortgage within a set period.
Key Considerations for Cashback Offers
When a cashback offer is on the table, it’s essential to look beyond the immediate financial benefit. This is where talking to your local Mortgage Broker at The Loans Suite can really help. They will review the offer with you and help you check:
- Suitability of the Lender and Loan: Ensure that the loan and lender are the right fit for your needs. Consider loan features like redraw facilities and offset accounts.
- Costs of Refinancing: Account for costs such as government mortgage registration fees and bank discharge fees, which can add up to around $1,000.
- Interest Rates: Evaluate the interest rates in relation to the cashback offer. Lower interest rates may outweigh the benefit of a cashback offer.
The Current State of Cashback Offers
It’s worth noting that the landscape for cashback offers is changing, with some lenders withdrawing their offers from the market. This trend might influence the availability and attractiveness of such deals moving forward.
Cashback Offers Available as of November 2023
For those still interested, there are various cashback offers for both refinancers and first home buyers as listed in the tables provided. Offers from lenders like ANZ, ME Bank, and Bank of Queensland have specific conditions and eligibility criteria. A The Loans Suite broker can explain these in a quick chat.
So, here are some home loan cashback offers up for grabs — current as of 4 November 2023.
Cashback offers for refinancers
Current as at 4 November 2023.
Lender |
Cashback offer |
Min. loan size |
Max. LVR |
Details |
ANZ |
$2,000 |
$250,000 |
80% |
Settle within 120 days of application. |
ME Bank |
$3,000 |
$700,000 |
80% |
Settle within 120 days of application. |
ME Bank |
$2,000 |
$400,000 |
80% |
Settle within 120 days of application. |
Bank of Melbourne |
$2,000 |
$250,000 |
80% |
Apply by 30 Nov, settle by 31 Mar. |
St George |
$2,000 |
$250,000 |
80% |
Settle within 120 days of application. |
BankSA |
$2,000 |
$200,000 |
80% |
Settle within 120 days of application. |
Bank of Queensland |
$2,000 |
$250,000 |
80% |
Settle within 120 days of application. |
Cashback offers for first home buyers
Current as at 4 November 2023.
Lender |
Cashback offer |
Min. loan size |
Max. LVR |
Details |
ANZ |
$3,000 |
$250,000 |
100% |
Offer available for First Home Buyers only. Settle within 180 days of application. |
Bank of Queensland |
$2,000 |
$250,000 |
100% |
Only available in conjunction with Lenders Mortgage Insurance policy. |
Are Cashback Offers Worth It?
The value of a cashback offer largely depends on the individual’s circumstances. When the chosen loan aligns with the borrower’s financial situation and the benefits outweigh the costs of refinancing, a cashback offer can be a lucrative deal. However, it’s crucial to engage with a broker to navigate the specifics and confirm whether a cashback offer suits your financial goals.
Frequently Asked Questions About Cashback Offers
- Eligibility for First-Time Applicants: While typically for refinancers, some cashback offers are available for first-time home buyers.
- Fixed and Variable Rate Loans: Cashback offers are usually available for both fixed and variable rate loans.
- Lender Availability: Not all lenders offer cashback deals, but many major banks and smaller lenders do.
Still weighing up whether a home loan cashback offer is right for you?
Well, we think it’s great if you’re still not sure. It’s important to know all the ins and outs before jumping in. But reading all the fine print can take time. So, do yourself a favour if you’ve got your eyes on a potential cashback offer — speak to a Mortgage Broker. It’s our job to know this and to help you work out what is the best loan option for your unique situation.
At The Loans Suite, we’ll find a loan that meets your needs, run through the numbers and compare the fees vs benefits of switching.
You’ll be shocked at how easy the process is…
- Book a chat with a friendly The Loans Suite expert (online or on the phone)
- Tell us about yourself and provide any additional info
- We’ll do the heavy lifting and present you with some loan options (including cashback offers), so you can choose your approach
