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Which banks are scrapping their cashback offers? And who is still offering them?

Mark Bristow avatar
Mark Bristow
- 4 min read
Which banks are scrapping their cashback offers? And who is still offering them?

When mortgage interest rates are rising, many borrowers look for alternative ways to get value for money from their home loan. Cashback deals are one way that many mortgage lenders compete for customers in a rising rate environment, but record refinancing activity is leading some leading banks to pull their cashback offers.

How do home loan cashbacks work?

Cashback deals are special home loan offers where the lender pays the borrower a sum of cash (often between $2000 and $5000), when they successfully settle a home loan with them.

These deals are often targeted at customers refinancing their mortgages from other lenders, with the cashback intended to offset some of their switching costs, such as upfront and outgoing fees, solicitors’ fees, stamp duty, and so on.

Which banks have scrapped their cashback deals?

In May 2023, the Commonwealth Bank of Australia announced that it would be discontinuing its $2000 cashback offer from 1 June. Just a few days later, NAB announced it would be discontinuing its own $2000 cashback after 30 June 2023. By the end of the month, Bankwest announced its $2000 cashback would also end 31 May, and Westpac announced it would be ending its $3500 cashback, and ING would also be ending its $3000 cashback, both from 30 June. And in August 2023, it was announced that ANZ would be halving its cashback deal from $4000 to $2000 as of 26 August 2023. 

The discontinuation of these offers came on the heels of a record $21 billion worth of home loan refinancing in March 2023. In June 2023, a total $266.96 billion worth of loans have been refinanced since May 2022, when the current rate hiking cycle began. These refinancing volumes could likely make offering discounts and cashbacks an expensive exercise for the banks.  

RateCity research director, Sally Tindall, said that cashback deals are “dropping like flies” due to the current market churn putting pressure on the banks’ profit margins.

“While there’s still a handful of banks holding on to these sweeteners, customers can’t expect them to last forever. Borrowers hoping to maximise a refinancing deal with a cashback hit should consider making the move soon – but be smart about it. Households looking for long term relief are likely to be better off looking for an ultra-low rate and haggling with their new bank to waive any associated fees.”

Which banks are still offering cashback deals?

While cashback offers have proven to be tempting for many refinancers (and a few first home buyers), it’s important to look beyond the deals on offer and to carefully consider the overall value of each home loan. Looking at the interest rates, fees, features and benefits can help you compare home loan deals and find the best option to suit your needs.

List of lenders still offering home loan cashback deals at March 2023 vs August 2023

Max cashback
LenderMar 23Aug 23
Bank of China$3,000$4,288
Bank of Melbourne$4,000$2,000
Bank of Queensland$3,000$3,000
Credit Union SA$2,500GONE
Defence Bank$4,000GONE
Geelong Bank$2,000GONE
Great Southern Bank$3,000GONE
Greater Bank$4,000GONE
Heritage Bank$4,000GONE
imb bank$3,000$3,000
ME Bank$4,000$4,000
MyState Bank$3,000GONE
Newcastle Permanent$3,000GONE
People's Choice$4,000GONE
Reduce Home Loans$10,000$10,000
Regional Australia Bank$2,000GONE
St. George Bank$4,000$2,000
Summerland Credit Union$3,000GONE
Suncorp Bank$4,000GONE
P&N Bank$2,000GONE

Source: RateCity.com.au. *Note: loans.com.au cashback offer only available through comparison websites.

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Product database updated 05 Mar, 2024

This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.