Cashback home loan deals in January 2025

CoreLogic’s data highlights a shift in the housing market, with home values seeing their first decline since February 2023 after two years of strong growth. The slowdown has been linked to affordability challenges, reduced buyer demand, and more properties hitting the market. These conditions are expected to continue into the new year, likely leading to a further cooling of the property market.

Falling property values can also impact the economy. Homeowners may feel less wealthy, which could reduce spending. Since consumer spending makes up a big part of the economy, this weaker demand might prompt the Reserve Bank of Australia (RBA) to lower the cash rate to support growth. While the timing of a rate cut depends on various factors, two of the major banks expect it to happen by May this year, with some economists predicting it could come as early as next month.

For homeowners, regardless of when the RBA acts, reviewing your loan options could be a smart move. Refinancing to better terms might ease pressure on household budgets by lowering monthly repayments or reducing interest costs. Although refinancing can involve upfront fees, some lenders offer cashback deals to offset these costs.

These cashback offers, often ranging from $2,000 to $4,000, can help cover refinancing expenses. Borrowers can typically use this money as they like, whether for small home improvements, managing other costs, or boosting their offset account balance to save on interest over time.

While cashback deals may seem attractive, it’s important to look at other aspects of the loan. Consider the interest rate, features, and fees to make sure refinancing delivers the savings you’re after. Comparing your options can help you ensure you’re making a decision that works for you.

*For New Loans - FHB only

Source: RateCity.com.au. Data accurate as of 06 January 2025. Value of cashback you may be offered will vary depending on the lender's eligibility criteria.