Who is still offering cashback home loan deals in August

Going, going, gone! There are even less cashback deals on offer for home loan customers, with only 12 lenders offering deals in August - down from 35 in March 2023. 

Cashback deals have always been one of the most competitive perks on offer by home loan lenders to entice new customers to sign up. However, as rising interest rates push more borrowers to refinance, lenders have taken these incentives off the table. 

In fact, at the time of publishing, ANZ is the only big four bank still offering cashback deals for refinancers. If you’ve been considering getting some cash-in-hand with your new home loan, it may be worth exploring your remaining options carefully. 

Other sign up perks are still available - particularly for first home buyers - such as reduced Lenders Mortgage Insurance and bonus Qantas frequent flyer points.

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

Cashback home loan deals on offer in August

Cashback deals

In August, there were 12 lenders offering cash back home loan deals ranging from $2,000 up to $10,000.

Cashback home loan deals are popular for first home buyers and refinancers as they may help to cover the cost of signing up. In fact, refinancing a home loan alone can cost a few hundred dollars, or more depending on your current and new lender. You could also use your cashback for something like a new appliance or home upgrade, or even put it towards your mortgage.

Keep in mind that the amount you may earn in cashback perks will typically depend on your eligibility, your loan amount and your loan-to-value ratio (LVR). For example, Reduce Home Loans offers a $10,000 cash back deal on the RateCity database of $10,000. However, it is only available for customers with a loan of $2 million or more.

Source: RateCity.com.au. Data accurate as of 01/08/2023. 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 deals are predominantly available to refinancers. However, eligible first home buyers may also be able to take advantage of additional perks, such as reduced Lender’s Mortgage Insurance (LMI).

As LMI is one of the most expensive upfront costs associated with a mortgage, gaining some relief could be a game changer for some first home buyers. LMI can cost tens of thousands of dollars, depending on the value of the property. The lender will request you pay it, or add this cost to your mortgage when you have a home deposit under 20%. 

In August , 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 frequent flyer points are more your speed, you’ll be pleased to know that Qantas offers a home loan that also comes with frequent flyer points for eligible customers 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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