Home loan cashback deals for February 2021

If you’re on the path of greater financial health this year, you may be considering refinancing your home loan. And in February, there are a range of home loan cash back deals up for grabs for refinancers.

But it’s not just cash that’s up for grabs. Some lenders are also offering home loan sign-up deals, like waived lenders mortgage insurance and bonus credit card rewards points, to entice borrowers on to their books.

What deals are on offer this month?

• Cashback deals

Refinancing has surged over the last year, no doubt pushed by the current low interest rate environment. The latest ABS Lending Indicator data found 237,632 people had refinanced since March 2020. And for many Aussies, a cash back deal can cut down the upfront costs associated with refinancing.

In February, the sheer majority of cash back deals (22 of 23) are available for refinancers only. This is in contrast to the seven lenders offering cash back for first home buyers last month. While there is one first home buyer option available from Beyond Bank, cash back is definitely a refinancers game at the moment.

Cashback deals can range between $1,000 - $5,000, depending on your loan size. It may come in the form of cash in your bank account or be subtracted from your home loan balance or upfront fees. It may also come in the form of gift cards, so check with your chosen lender how they offer it before applying.

• Waived LMI

Lenders mortgage insurance (LMI) can be one of the biggest costs associated with a home loan if you have saved a deposit under 20 per cent or have less than 20 per cent equity paid into your mortgage when you refinance. It can climb into the tens of thousands of dollars range, and, when added to your mortgage, may increase the amount of interest you pay over the life of the loan significantly.

And that’s what makes waived LMI an enticing sign-up deal for some homeowners. First home buyers left out from traditional cash back deals may want to consider taking advantage of waived LMI offers, as a 20 per cent deposit is a hard ask for most living in capital cities.

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

Source: RateCity.com.au. Data accurate as of 09/02/2021.

• Qantas frequent flyer points

Attention points chasers: did you know you may be able to earn bonus Qantas frequent flyer points when you sign up for a home loan?

Macquarie Bank and Qudos Bank currently offer a home loan sign-up deal that rewards borrowers with Qantas Points. These points may be available at the time of approval, or released over your loan term.

Plus, you won’t need to spend on eligible purchases to earn these reward points bonuses.

Source: RateCity.com.au. Data accurate as of 09/02/2021.

• 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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