Home loan cashback deals for January 2021

New year, new home loan deals. There are a range of home loan cashback deals on offer at the moment, with the majority targeting refinancers.

If you’ve been considering refinancing to a new home loan lender, 2021 may be the time to strike, especially given the current low-rate environment.

But it’s not just cash being put on the table to entice new customers: some lenders are also offering home loan rewards like waived lenders mortgage insurance and bonus Qantas frequent flyer points on sign up.

What deals are on offer this month?

• Cashback deals

A cashback home loan offer is one method lenders try to bring in new customers by offering you a cash bonus, generally between $1,000 - $5,000, depending on your loan size.

A cashback deal may come in the form of actual cash in your bank account, or even added towards your new home loan to help waive upfront fees. You may also be offered a cashback deal in the form of gift cards. Always check with a lender how they will give you the cash before applying.

We’re kicking of 2021 with a cashback bang, as 21 lenders are offering this deal on loan approval as of January. The majority, as mentioned above, are for refinancers. But there are still some lenders offering cashback deals for first home buyers, including:

• 86 400
• Bank of China
• BankVic
• Beyond Bank Australia
• Heritage Bank
• Police Bank
• Reduce Home loans

• Waived LMI

Another sign-up perk you may be offered when you apply for a home loan is waived lenders mortgage insurance (LMI). For home loan applicants, especially first home buyers, this can be one of the biggest costs you need to consider when saving for a deposit.

If your deposit or the equity in your home is less than 20 per cent of the loan value, you will have to pay costly LMI. This can cost tens of thousands of dollars, and, if added to your loan to be paid over time, can increase the total cost of your loan significantly due to interest.

Virgin Money is currently offering waived LMI for some eligible, new owner-occupiers.

Source: RateCity.com.au. Data accurate as of 12/01/2021.

• Qantas frequent flyer points

You may also be offered generous sign-up bonuses in the form of Qantas frequent flyer points. In January, two home loan lenders are offering this bonus to borrowers on application approval, as well as during your loan term.

Unlike Qantas frequent flyer credit cards, earning these rewards points does not require you spending on eligible purchases.

Source: RateCity.com.au. Data accurate as of 12/01/2021.

• 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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