The biggest home loan cash back deals for May

The Reserve Bank of Australia has hiked the cash rate for the first time in over a decade. So, with interest rates on the rise for home loans, it’s never been more important to get the best deal for your mortgage.

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 in a time of higher rates.

But they don’t just come in the form of cash-in-hand. Some lenders are willing to sweeten the deal with 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 May 2022.

What deals are on offer this month?

• Cashback deals

In May, 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 these 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.

Reduced Lender’s Mortgage Insurance

What about first home buyers? Several lenders also currently offer their customers reduced Lender’s Mortgage Insurance (LMI), depending on the size of your deposit (loan-to-value ratio).

Homebuyers that have a deposit less than 20% of the property value will typically be charged LMI. This 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 06/05/2022.

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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