Going, going, gone: 26 lenders still offering cashback home loan deals in June 2023

After eleven hikes to the cash rate since April 2022, millions of Australians are no doubt feeling pressure in their household budget.

One way that homeowners can take back control of their mortgage repayments is to consider refinancing to a lower rate lender. Cashback home loans may be one way to do just that - and nab some cash in the process. 

However, over the last few weeks, more and more lenders have been peeling back their cashback offers.

This month, there are 26 lenders still providing cashback home loans, however, some major institutions have revealed these deals will not continue to be offered in the new financial year, including ING, Westpac and NAB. 

The good news is that it’s not just refinancers who can benefit from cashback deals. First home buyers may also be eligible for sign-up perks like reduced Lenders Mortgage Insurance, or bonus Qantas frequent flyer points.  

So, if you’ve been thinking about refinancing your home loan and hoping to snatch up some cash-in-hand, now may be the time to consider switching. Let’s explore the cashback deals for home loans on offer in June 2023. 

Cashback home loan deals on offer in June

Cashback deals

In June, there are still 26 lenders offering cash back home loan deals ranging from $2,000 to $10,000.

Refinancing a home loan can cost a few hundred dollars, or more depending on your current and new lender. While this cost is expected to pay for itself in lower mortgage repayments over time, your savings could still take a hit in the meantime. Cashback home loan deals may help to cover the cost of switching. Additionally, you could use these funds on something more exciting, like a new appliance or home upgrade, or even to chip away at your loan principal. 

The amount you could earn in cashback perks will depend on your eligibility, your loan amount and your loan-to-value ratio (LVR). For example, Reduce Home Loans offers the largest cash back deal on the RateCity database of $10,000. Eligible customers must have a loan size of $2 million or more. 

Source: RateCity.com.au. Data accurate as of 02/06/2023. 

Reduced Lenders Mortgage Insurance

Eligible first home buyers may benefit from the sign-up perk of reduced Lender’s Mortgage Insurance (LMI). LMI is one of the most expensive upfront home loan costs, and can put you tens of thousands of dollars out of pocket, depending on the value of the property. It is charged when home buyers have a deposit of under 20% - a challenging deposit size to save for in most capital cities. 

In June, St. George is offering waived or reduced LMI to eligible first home buyers. The offer of $1 LMI is available to eligible first home buyers with a 15% deposit, looking for an owner-occupier home loan under $850,000, and planning on making principal and interest repayments.

Frequent Flyer Points

If you’re less concerned about LMI and more interested in a discounted holiday, then this perk may be for you. Qantas is offering a competitive home loan that provides eligible customers with frequent flyer points every year.

The Qantas Money Home Loan offers these customers 100,000 Qantas frequent flyer points every year into your account (you must be a Qantas Frequent Flyer Member). This could be enough points to take you across the globe, or take the family around Australia.

This offer is available for first time buyers and refinancers with established properties (no off-the-plan homes or construction loans). The loan is also available to self-employed homeowners (eligibility criteria applies).  

• Keep in mind that there is more to a home loan than a deal being offered to you, and it’s always important to compare the interest rates, fees, and features of a loan before applying. For more information on whether one of the above loans may suit your finances, consider using our Home Loan Calculator to see how potential repayments could fit in your budget.

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