Home loan cashback deals for March 2021

2021 has gotten off to an action-packed start for both investors and owner-occupiers. With housing prices continuing to rise across Australia, borrowing activity increasing and mortgage interest rates simultaneously falling, many borrowers are starting to experience a fear of missing out. 

But there’s more than just low rates you may miss out on if you’re not doing your research. There are currently a range of deals on offer for new mortgage customers, including cashback perks, bonus credit card rewards points and reduced LMI.

Let’s explore some of the home loan deals on offer for March 2021.

What deals are on offer this month?

Cashback deals

Once again, the majority of cashback deals on offer are for refinancers, with 17 of 24 cashback offers from lenders available to refinancers only. Some lenders are offering cashback deals to first home buyers as well, but refinancers are primarily being targeted by home loan lenders through these deals.

Depending on your loan size, cashback deals can range between $1,000 and $5,000. A lender may offer it to you in the form of cash in your bank account, as a gift card or it may be subtracted from your home loan balance or upfront fees. The latter of which may potentially be able to help refinancers reduce some of the costs associated with refinancing.

Reduced LMI

Lenders mortgage insurance (LMI) can be one of the biggest costs associated with a home loan, and if you’ve not saved a deposit of at least 20 per cent, you may find yourself paying tens of thousands of dollars in LMI. For first home buyers, particularly in Sydney or Melbourne, a 20 per cent deposit can mean saving hundreds of thousands of dollars, which can be unrealistic for many.

St George, however, is offering to reduce the cost of LMI to $1 if you’re an eligible first home buyer with a 15 per cent deposit, looking for an owner-occupier home loan, and planning on making principal and interest repayments.

According to St. George, the eligibility requirements include:

• “Be a first home buyer applying for your first home loan for your first property
• Apply for a home loan with St. George from Monday 13 July 2020
• Your home loan has an LVR up to 85 per cent at the time of formal approval
• Loan size must not be over $850,000
• For joint applications, only one applicant needs to be a first home buyer
• Only one property financed per application.”

Qantas frequent flyer points

It’s not just home loan perks you may be able to snatch up. 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 10/03/2021.

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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