Cashback home loan deals in December 2024

In December, the Reserve Bank of Australia (RBA) is scheduled to hold its final monetary policy meeting for the year on the 9th and 10th. Currently, the cash rate remains at 4.35%, and recent economic indicators suggest that a rate cut is unlikely in the immediate future. Major banks have adjusted their forecasts, now anticipating the first rate cut in May 2025, a shift from earlier predictions of February 2025.

For homeowners looking to ease pressure on their household budgets, refinancing to more favourable loan terms could provide some relief. Refinancing has the potential to reduce interest charges or lower monthly repayments; however, it's essential to consider the associated costs. Traditionally, some lenders have offered cashback incentives to help offset these expenses.

These cashback offers, typically ranging from $2,000 to $4,000, can help cover upfront refinancing costs. Borrowers often have the flexibility to use these funds as they wish—whether to finance minor home improvements, support other expenses, or simply bolster the balance of their offset account.

While appealing, it’s crucial to evaluate the overall value of a loan rather than focusing solely on the cashback amount. Consider the loan's interest rate, features, fees, and other costs to ensure that refinancing achieves the savings you're looking for. As always, comparing your options is key to making an informed financial decision.

Currently, eight lenders are offering cashback deals in December, a significant drop from the peak of 35 deals in March 2023. Under the right circumstances, you may qualify for cashback ranging from $2,000 to $4,000. Keep in mind that the cashback amount you’re eligible for will depend on factors such as your eligibility, total loan amount, and loan-to-value ratio (LVR).

*For New Loans - FHB only

Source: RateCity.com.au. Data accurate as of 04 December 2024. Value of cashback you may be offered will vary depending on the lender's eligibility criteria.