30 cashback home loan deals up for grabs in July

Looking for a little sweetener for your first or next mortgage? There are 30 cashback deals on offer this July for homeowners looking for a competitive deal, plus extra benefits for those eligible.

Interest rates are officially on the rise and homeowners are no-doubt feeling the pinch, with the Reserve Bank of Australia hiking the cash rate for a third month in a row. Luckily, there are competitive cashback deals on offer so you can still find your best mortgage deal in July.

If the latest cash rate hikes have you feeling the financial pinch for your mortgage repayments, it may be worth comparing cashback refinance offers. Refinancing to a lower rate home loan is one way you could give yourself a rate hike and nab cash in your back pocket in the process.

And for first home buyers entering a higher-rate mortgage market, it’s never been more important to find your best deal on a home loan. While it’s worth comparing factors like rates, fees, and features, it may also be worth exploring the benefits of a cashback deal.

Cashback 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.

These deals on home loans may be one way first home buyers and refinancers could make taking out a home loan more affordable - particularly in an era of rising interest rates. Let’s explore the cashback deals for home loans on offer in July 2022.

What cashback deals are on offer this month?

• Cashback deals

This month, there are 30 lenders offering cash back home loan deals to eligible customers. These cashback deals range from $1,000 - $10,000, depending on the size of your home loan.

Refinancer cashback deals make up the majority of July’s offers and may be provided in the form of cash in your account, a reduction on your mortgage or as a gift card. These deals are popular with refinancers as they may help cover the cost of switching or give you extra cash for a new appliance or home upgrade.

Only Reduce Home Loans and Credit Union SA are offering cashback home loan offers for new purchases this month. And two of these cashback 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

First home buyers aren’t left out of the picture, with another option available to you that could make your mortgage more affordable. Several Australian lenders are currently offering eligible first home buyers reduced Lender’s Mortgage Insurance (LMI).

This is one of the most expensive upfront costs of purchasing a property outside of the deposit and/or stamp duty and is payable to the lender when your deposit is under 20% of the property’s value. This cost can climb into the tens of thousands of dollars range very quickly, making waived LMI a competitive cashback offer.

• 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 08/07/2022.

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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