The biggest home loan cashback deals on offer in October for refinancers and new purchases

Home loan interest rates are on the rise again, thanks to a sixth consecutive hike to the Reserve Bank of Australia’s cash rate in October. So, if you’re considering refinancing to give yourself a rate cut, why not sweeten the deal, and compare cashback offers as well?

This month, there are 32 cash back deals on offer for refinancers, with six available for new purchases, ranging anywhere from $1,500 to $10,000, depending on the value of the property. If cash-in-hand isn’t your thing, you may also apply for home loans offering waived Lenders Mortgage Insurance.

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

What cashback deals are on offer this month?

• Cashback deals

In October, there are 32 lenders offering cash back home loan deals to eligible customers. This month’s cashback deals range from $1,500 - $10,000, depending on the size of your home loan.

The majority of these are, once again, available for refinancers. Cashback deals generally come in the form of cash-in-hand and are often used to cover the switching costs associated with refinancing. Refinancers are particularly targeted for cashback deals, as it can help to cover the cost of switching or give homeowners extra cash for a new appliance or home upgrade.

This month, six lenders are also offering cashback deals to new purchasers as well. This includes

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

• Reduced Lenders Mortgage Insurance

There are other ways new borrowers can potentially gain a discount or perk when they sign up to a lender: waived or reduced Lenders Mortgage Insurance (LMI).

LMI is one of the most expensive upfront costs of purchasing a property, outside of the deposit and/or stamp duty. It can climb into the tens of thousands of dollars range, depending on the value of the property. It must be paid when a home buyer has a deposit under 20% of the property’s value.

In October, these lenders are 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.
• 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.

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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