Home loan cashback deals for January 2022

The new year is here and with it comes another possibility of interest rate hikes and growing house prices. So, how can would-be borrowers and refinancers soften the blow of these events in 2022?

Experts have been predicting that the Reserve Bank of Australia may hike the cash rate within the next two years, with Westpac economists expecting a cash rate of 1.75% by March 2024.

And the number of suburbs with house values entering the $1 million club has skyrocketed in recent months. Over 300 new Aussie suburbs have joined a growing list of million dollar suburbs, according to the latest CoreLogic figures.

If you’re considering taking out a home loan and are intimidated by housing costs, or want to refinance to a lower rate loan now before the hikes come, it may be worth exploring cashback options available to sweeten the deal.

Here are some of the cashback offers available to new and refinancing home loan customers for January 2022, including waived lender’s mortgage insurance and Qantas frequent flyer points.

What deals are on offer this month?

• Cashback deals

Whether you’re a first home buyer or considering refinancing, it may be worth researching home loans that offer cashback deals. Cashback deals can range between $1,000 - $5,000, depending on the lender and the size of your mortgage.

Cashback deals may be able to cover some of the costs associated with refinancing, such as application fees, or be put towards the new home through a big-ticket purchase, like a new dishwasher.

According to RateCity’s database, in January, 25 lenders (including the big four banks) are offering cashback deals, with a majority for refinancers only. Four cashback home loans are available for first home buyers.

• Reduced Lender’s Mortgage Insurance

You may be wondering what else is available that can help first home buyers? Several lenders are offering their customers a reduced lender’s mortgage insurance (LMI) deal, as well as the traditional lump-sum cashback.

If your deposit is smaller than 20%, you will need to pay LMI, which can climb into the tens of thousands of dollars range, depending on your property location. And for those buying in capital cities, a deposit of this size is very difficult to achieve, making LMI a costly inevitability.

Waiving this cost for first home buyers may help to reduce the financial stress of saving for a first property.

• 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, and planning on making principal and interest repayments.
• For BOQ customers, the $1 LMI offer is available to both owner-occupier and investor first home buyers planning on making principal and interest repayments. Approval is limited to deposits as little as 15% on eligible home loans valued up to $1 million.
• For UBank customers,you may be able to gain loan approval with a loan-to-value ratio (LVR) of only 85% without paying LMI.
• For 86 400 customers,you may be able to gain loan approval with a loan-to-value ratio (LVR) of only 85% without paying LMI.

• Qantas frequent flyer points

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 25/01/2022.

• 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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