Considering refinancing? 28 lenders offering cashback deals up to $10,000 this May

Are rising interest rates putting pressure on your household budget? One way homeowners can give themselves a rate cut is to consider refinancing to a lower rate lender. Cashback home loans may be one way to do just that - and nab some cash in the process. 

This month, there are 28 lenders offering cashback deals for both refinancers and new buyers. These deals range from $2,000 to $10,000, depending on the size of your home loan. 

Refinancing a home loan can cost a few hundred dollars, or more depending on your current and new lender. While this cost is expected to pay for itself in lower mortgage repayments over time, your savings could still take a hit in the meantime. Cashback home loan deals may come in handy here, and help to cover the cost of switching.  

But it’s not just refinancers who can benefit from cashback deals, as first home buyers may also be eligible for perks like reduced Lenders Mortgage Insurance, or bonus Qantas frequent flyer points.  

Let’s explore the cashback deals for home loans on offer in May 2023. 

The cashback home loan deals on offer in May

Cashback deals

In May, there are 28 lenders offering cash back home loan deals ranging from $2,000 to $10,000.

These cashback deals could help to cover the cost of refinancing your home loan. Additionally, you could use these funds on something more exciting, like a new appliance or home upgrade, or even to chip away at your loan principal. 

The amount you could earn in cashback perks will depend on your eligibility, your loan amount and your loan-to-value ratio (LVR). For example, Reduce Home Loans offers the largest cash back deal on the RateCity database of $10,000. Eligible customers must have a loan size of $2 million or more. 

Reduced Lenders Mortgage Insurance

If you’re a first home buyer, you may be eligible for the sign-up perk of reduced Lender’s Mortgage Insurance (LMI). 

LMI can be one of the most expensive upfront home loan costs, and is charged when home buyers have a deposit of under 20%. This can cost you tens of thousands of dollars, depending on the value of the property.

In May, St. George is offering waived or reduced LMI to eligible first home buyers:

• For St. George customers, 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 less concerned about LMI and more interested in a discounted holiday, then this perk may be for you. Qantas is offering a competitive home loan that provides eligible customers with frequent flyer points every year.

The Qantas Money Home Loan offers these 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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