34 cashback home loan deals for September that could ease the sting of rising rates

The Reserve Bank of Australia has hiked the cash rate yet again, for a fifth month in a row. Homeowners still considering refinancing because of rising rates may be able to nab more than a rate cut when they consider cashback home loans.

With the cash rate now sitting at 2.35%, home loan lenders across the country will be looking to increase their customers’ mortgage rates. Variable rate home loan customers will be the first to feel the pinch, with those still on fixed rates from a pre-hike era nervously awaiting the end of their fixed period.

One of the ways that homeowners can give their budgets some breathing room, in a higher-rate environment, is by considering refinancing to a more competitive home loan rate.

This month, there are 34 cashback home loan deals on offer, with the majority available to refinancers. Some lenders are also offering additional benefits to eligible customers, including reduced Lender’s Mortgage Insurance, and the possibility of earning frequent flyer points.

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

What cashback deals are on offer this month?

• Cashback deals

In September, there are 34 lenders offering cash back home loan deals to eligible customers. Five of these deals are available to new purchases, provided by Credit Union SA, MOVE Bank, Reduce Home Loans, Heritage Bank and Australian Unity. The value of these cashback deals ranges from $2,000 up to $10,000 – depending on the lender and the property value.

Cash back deals may be provided in the form of cash in hand, a reduction to your principal owing, or as a gift card. They are often used to cover the switching costs associated with refinancing or can be put towards moving costs or a new appliance.

• Reduced Lender’s Mortgage Insurance

While there may be less traditional cashback deals on offer for first home buyers, some lenders are offering them special deals as well. Several lenders are offering first home buyers reduced Lender’s Mortgage Insurance (LMI) in September.

LMI can cost homebuyers tens of thousands of dollars, depending on the property value, if the borrower does not save a deposit of 20% or more. It is one of the most expensive upfront costs of purchasing a property, outside of the deposit and/or stamp duty.

These are the lenders offering reduced LMI in September:

• 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.

Qudos Bank currently offers 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 09/09/2022.

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.

• Note: Story has been updated to reflect 34 cashbacks, as opposed to a previous 33, as a new cashback deal came into the RateCity database. 

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