Here’s the thing: lenders *love* new home loan customers.
Like, really love them.
In fact, they love them soooo much, they’re willing to fork out a fairly decent financial incentive (usually cash) to get them through the door.
It’s called a cashback offer. And it’s worth knowing about if you’re thinking of getting a new loan or refinancing your current loan.
A little further down, we answer;
- How does cashback work on a home loan?
- What are the things to consider?
- What are the top home loan cashback offers in November 2024?
- And is a cashback offer worth your while?
But first, let’s cut to the chase…
Current home loan cashback offers (November 2024)
At Finspo, we keep our finger on the pulse when it comes to cashback offers, ultimately so we can help homeowners — just like you — land a great deal.
So, here are some home loan cashback offers up for grabs — current as of 7 November 2024.
Cashback offers for refinancers
Current as at 7 November 2024.
| 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. |
Cashback offers for first home buyers
Current as at 7 November 2024.
| 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. |
Now, let’s backtrack for a little more context…
What is a home loan cashback offer?
Cashback on a home loan is exactly how it sounds. That is, you get *cash back*.
Yep, it’s when lenders give a financial incentive to new customers, enticing you to switch your home loan over to them (usually in the form of cash).
Most of the time, cashback offers are for existing homeowners looking to refinance. But occasionally cashback offers can be extended to new home purchasers and first home buyers.
Why do lenders offer cashback offers?
It’s quite simple, really. More customers for the lender = more profits.
And what’s a great way to get more customers? Throw cash at them, of course.
Plus, having an enticing cashback offer makes a lender more competitive in a crowded market, attracting customers that might have otherwise gone elsewhere.
How do home loan cashback offers work?
There are a few boxes you need to tick to qualify for a cashback offer (and this can vary between lenders).
In most cases, you have to…
Join as a new customer
And by new customer, we mean you’re switching lenders entirely (not refinancing with the same lender). Because when a lender’s already *got* you, they’ve got less of a need to try and win you over.
Meet a minimum mortgage amount
For example, a home loan of at least $250,000. This makes it worth the lender’s while (they’re less inclined to offer great incentives if you’ve only got a small amount left on your loan).
By refinancing an existing mortgage you hold
Refinancing cashback offers are very common in the market. In saying that, sometimes you can get cashback as a new home buyer, too. But it’s less common. See below for all the details.
Have a loan-to-value ratio (LVR) of less than 80% (or in some cases 90% or 100%)
An LVR is the size of your loan divided by the value of your property as a percentage. It’s a common metric banks use to assess the “risk” of your loan — with a higher LVR representing greater risk (if things go bad).
If you tick all these boxes and your home loan is approved, the method for getting the cashback offer varies.
Most of the time, it’s a direct transfer into your transaction account, other times it’ll be deducted from your mortgage. It’s usually paid within 30 days of getting your new loan (but this can also vary between lenders).
If you have any questions, speak to a broker (like Finspo) who’ll be able to give you the details and handle the heavy lifting for you.
What should you consider when thinking about a cashback offer?
If you’re thinking “this cashback offer stuff sounds alright”
You may well be correct.
Buuut before you go for a cashback offer without giving it a second thought — know there are a few things to consider.
Things like…
Do I want to go with this lender and their product?
Is the lender and loan you’re moving to good for YOU and YOUR situation? What features does the loan have (or not have)? Do you need options like redraw facilities and offset accounts? Asking questions like this will help you work out whether the loan is a good fit (and prevent you from getting focused on the cashback offer alone). The good news is, most cashback offers are available with the most popular home loan options — so quite often you *can* have your cake and eat it, too.
The cost of refinancing
Truth is, it costs $$$ to switch your mortgage over. The most common fees are mortgage registration fees (charged by the government) and mortgage discharge fees (charged by the banks). These can typically add up to around $1,000. So in many cases, the benefits of refinancing will still far outweigh the costs (if in doubt, check with your broker).
The current rates
Ask yourself, what are interest rates doing right now? Weighing up your situation against the current rates will help you work out whether it’s a worthwhile cashback offer. For example, it might not be worth going for a juicy cashback offer if the interest rates they’re offering are higher than others on the market (a broker can help you nut this out). Often new customers get better interest rates than existing customers, so switching your loan may result in a double win. You can read more about the mortgage loyalty tax here.
What’s happening to cashback offers right now?
In recent weeks, many lenders have announced they are withdrawing their cashback offers from market. This is unfortunate news for borrowers who are looking to cash in on these attractive deals. It’s not clear what other lenders will do, but it’s likely we see other lenders follow with similar announcements.
If you’re looking for a wrap up of lenders who have announced their withdrawal from cashback offers, head to the FAQ section below.
So, are refinance cashback offers worth it?
Well, we can’t speak on behalf of everyone, because everyone’s situation is unique.
But in many cases, a cashback offer can be an important element in choosing a loan (provided the loan you’re moving to is one that *works* for you — and you or your broker have crunched the numbers of refinancing fees vs benefits).
The first step to weighing up your situation is to speak to a broker (that’s us!) who’ll run through the numbers and find out which loan is a good fit for you and whether a cashback offer is available. We’ll even speak with the lenders on your behalf so you don’t have to.
How easy is that?
Your cashback questions, answered
Can you get cashback if it’s your first time applying for a home loan?
Most of the time, cashback offers are reserved for existing homeowners with a mortgage they’re looking to refinance. But in some cases, cashback offers are available for new homeowners and first home buyers. In the table above you can see. If this is you, check out the table above to see which offers are available for new home purchasers and first home buyers specifically.
Can you get cashback on both fixed and variable rate home loans?
Most of the time, yes!
Do all lenders offer cashback deals?
Not all, but quite a few.
Which lenders offer cashback deals?
Unfortunately, not many these days. See our table above to compare the last remaining cashback offers available.
Are there any loan types excluded from cashback offers?
The requirements can vary from lender to lender — which means the lender can ultimately decide whether the cashback is available for certain loan types. It is common for lenders to exclude construction and bridging loans, and occasionally owner occupier loans with interest only repayment types.
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. This means you’re not just jumping on the biggest, juiciest cashback offer without first considering your unique situation.
So, if you’ve got your eyes on a potential cashback offer — or you’re keen to see whether there’s one that is coupled with a loan that suits your situation — the first step is to speak to a broker.
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 Finspo expert (online, phew!)
- 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
Simple!
