Christmas cashback: 33 lenders offering cashback home loan deals in December

The Reserve Bank of Australia hiked the cash rate for the eighth time in a row this month. Homeowners watching their rates skyrocket may be wondering where they can nab a refinancing bargain. 

If the latest interest rate hikes are hurting your budget, it may be worth giving yourself the Christmas gift of a rate cut – and a cashback deal to boot. One option to consider to help ease your household budget is to refinance to a lower-rate option.

And if you’re refinancing in the current market, you may as well consider pocketing some extra cash in the process. 

This month, there are 33 lenders offering cashback deals for both refinancers and new buyers. These deals range from $1,500 to $10,000, depending on the size of your home loan. 

And if cash-in-hand isn’t your thing, or you’re wondering what perks are available for first home buyers, you may also apply for waived Lenders Mortgage Insurance as a sign up bonus.

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

What cashback deals are on offer this month?

Cashback deals

In December, there are 33 lenders offering cash back home loan deals to eligible customers. This month’s cashback deals are valued at up to $10,000, as determined by the value of your mortgage. 

Most cashback deals for mortgages sit around $2,000 - $3,000, which in the current higher-inflation environment, could go a long way for homeowners – particularly around the holidays.

Cashback deals may be provided in the form of cash-in-hand. Refinancers generally utilise cashback deals to cover the costs of switching, but you may also use these funds to chip away at your loan principal, or put them towards a new appliance or home upgrade.

The majority of these are, once again, available for refinancers. However, this month, five lenders are also offering cashback deals to new purchasers as well, including:

• ubank
• Credit Union SA
• Reduce Home Loans
• Australian Unity
• Heritage Bank

Reduced Lenders Mortgage Insurance

It’s no secret that Lender’s Mortgage Insurance can be a significant upfront cost for refinancers and new home buyers. Another sign up deal available in December has the potential to qualify for waived Lender’s Mortgage Insurance (LMI).

If you apply for a home loan with a deposit less than 20%, or your LVR is above 80% when refinancing, you may have to pay LMI. This insurance can climb into the tens of thousands of dollars range, making it one of the most expensive upfront home ownership costs.

In December, this lender is offering waived or reduced LMI to eligible 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.

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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