Cashback offers up to $10k: where you can still nab a cashback home loan deal

Cashback deals are becoming as rare as hen’s teeth, as more and more lenders take these incentives off the table for home loan customers. Luckily, we’ve got the lowdown on which lenders are still offering cashback deals to new and refinancing customers. 

In September, there are 15 lenders offering cashback deals. This is down from a 2023 peak of 35 in March, but interestingly up from 12 lenders last month. 

In August, ANZ, the last of the big four banks still offering cashback deals, announced it would be halving its offer from $4,000 to $2,000. The move away from cashback deals can be attributed to the last year of rising interest rates, which pushed more borrowers to refinance. As a result, lenders have taken cashback deals off the table as incentives due to the high volume of customers.

So, where can you still nab a competitive cashback deal when you refinance, or as a new home loan customer? And what else are lenders offering besides cashback deals to stay competitive?

Let’s explore all the cashback home loan deals available for new borrowers and refinancers in September 2023.

Economy Variable Home Loan

• Owner Occupied
• Variable
• 30% min deposit

Enjoy a competitive interest rate, unlimited extra repayments, free redraws and even cashback when you refinance the mortgage on your home to this offer.

Interest rate p.a.

6.18%

Comparison rate* p.a.

6.33%

More details

FeaturedAustralian Credit Licence: 244616 BOQ terms and conditions

Cashback home loan deals on offer in September

Cashback 

In September, there were 15 lenders offering cash back home loan deals, ranging from $2,000 up to $10,000.

Cashback home loan offers have gained popularity among both refinancers and homebuyers, as they can help offset the initial costs associated with taking out a home loan. The process of refinancing a home loan alone can cost anywhere from a few hundred dollars to thousands, depending on the specific terms of your existing and new lenders.

The cashback you receive may be used for a range of purposes, such as purchasing new appliances, making home improvements, or even contributing it towards your mortgage payments.

It's important to note that the amount of cashback you're eligible to receive typically depends on key factors like your eligibility, the total loan amount, and your loan-to-value ratio (LVR). For instance, Reduce Home Loans is currently offering a $10,000 cashback deal, however, this particular offer is exclusively available to customers with loans of $2 million or more.

Source: RateCity.com.au. Data accurate as of 08/09/2023. Value of the cashback you may be offered will vary depending on the lender's eligibility criteria and your specific financial situation.

Reduced Lenders Mortgage Insurance

Cashback offers primarily cater to those seeking to refinance their mortgages. However, qualified first home buyers may also nab competitive upfront offers like reductions in Lenders Mortgage Insurance (LMI) expenses.

LMI is arguably one of the biggest costs associated with a mortgage, outside of the deposit and stamp duty. It can cost tens of thousands of dollars, depending on the value of your property. You will either have to pay this insurance up front or add this cost to your mortgage if you have a home deposit under 20%. 

However, saving up a 20% deposit is extremely difficult in the current property market - especially in capital cities. This is why having reduced LMI may be a competitive offer to consider as a first home buyer. 

In September , St. George is offering reduced LMI to eligible first home buyers. The offer of $1 LMI is available to eligible first home buyers with a 15% deposit, looking for an owner-occupier home loan under $850,000, and planning on making principal and interest repayments.

Frequent Flyer Points

If you’re more interested in growing your frequent flyer points than putting cash in your back pocket, you’ll want to know that Qantas offers a home loan that provides eligible customers with frequent flyer points every year

The Qantas Money Home Loan offers customers 100,000 Qantas frequent flyer points every year into your account (you must be a Qantas Frequent Flyer Member). This could be enough points to take you across the globe, or take the family around Australia.

This offer is available for first time buyers and refinancers with established properties (no off-the-plan homes or construction loans). The loan is also available to self-employed homeowners (eligibility criteria applies). 

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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