27 home loan cashback deals up for grabs in June

With a second double-cash rate hike hitting homeowners and would-be buyers hard in June from the Reserve Bank of Australia, the era of rock-bottom interest rates is coming to an end. This means it’s never been more important to find your best deal for a home loan.

Cashback deals on home loans are one of the ways first home buyers and refinancers can make the process of getting a home loan more affordable - particularly in an era of rising interest rates.

These deals can come in the form of cash-in-hand, but also through sweeteners like waived Lender’s Mortgage Insurance – which can cost tens of thousands of dollars depending on the property value – as well as bonus Qantas frequent flyer points on sign up.

Let’s explore the cashback deals for home loans on offer for June 2022.

What cashback deals are on offer this month?

• Cashback deals

In June, there are 27 lenders offering cash back home loan deals to eligible customers. These cashback deals range from $1,000 - $10,000, depending on the size of the home loan.

For example, Reduce Home Loans offers a large cashback sum of $10,000 for customers with loans of $2 million. For a homeowner with a mortgage of around $500,000, they may be more likely to gain approval for cashback deals up to $4,000.

The majority of June’s cashback deals are for refinancers and may be provided in the form of cash in your account, a reduction on your mortgage or as a gift card.

Two of these deals are only available through a broker (ANZ and Citi cashback deals), so it may be worth speaking to a mortgage broker for more information.

• Reduced Lender’s Mortgage Insurance

Don’t worry first home buyers, there are still options available for you to help make your home loan more affordable. Several lenders also currently offer reduced Lender’s Mortgage Insurance (LMI), depending on the size of your deposit (loan-to-value ratio).

Typically, first home buyers with a deposit under 20% of the property value will be charged LMI. This insurance cost can climb into the tens of thousands of dollars range, depending on the value of your property. Waiving this cost may be one option to reduce the financial stress of home ownership for first home buyers.

• For St.George customers, the offer of $1 LMI is available to eligible first home buyers with a 15% deposit, looking for an owner-occupier home loan, and planning on making principal and interest repayments.
• For BOQ customers, the $1 LMI offer is available to both owner-occupier and investor first home buyers planning on making principal and interest repayments. Approval is limited to deposits as little as 15% on eligible home loans valued up to $1 million.
• For UBank customers, you may be able to gain loan approval with a loan-to-value ratio (LVR) of only 85% without paying LMI.

• Qantas frequent flyer points

You may be able to earn bonus Qantas frequent flyer points when you sign up for a home loan.

Macquarie Bank and Qudos Bank currently offer a home loan sign-up deal that rewards borrowers with Qantas Points. These points may be available at the time of approval or released over your loan term. Plus, you won’t need to spend on eligible purchases to earn these reward points bonuses.

Source: RateCity.com.au. Data accurate as of 08/06/2022.

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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