Cashback deals to compare as rates are kept on hold in February 2024

The Reserve Bank of Australia (RBA) elected to keep the national cash rate on hold at its February 2024 meeting. With no interest rate cuts forecast until late 2024 at the earliest, some borrowers may want to compare home loans based on features other than interest rates, such as cashback deals. 

Many mortgage lenders have been gradually pulling their cashbacks from the market due to increasing refinancing activity and more intensive competition. But there are still cashback deals available for refinancers and first home buyers to compare, as well as other competitive incentives. 

In February 2024, there are 11 lenders offering cashback deals – considerably fewer than the peak of 35 lenders offering cashbacks in March 2023. Most of these deals are targeted towards refinancers, who could benefit from a cashback offer offsetting the hundreds or thousands of dollars it costs to switch home loans. Alternatively, cashback deals can be put towards your moving costs, buying a new appliance, making home improvements, or even making a head start on your mortgage debt. 

Cashback deals for February 2024

In February 2024, there are 11 lenders offering cash back home loan deals, ranging from $2,000 up to $10,000. 

Keep in mind that the cashback you're eligible to receive will depend on key factors like your eligibility, the total loan amount, and your loan-to-value ratio (LVR).

Source: RateCity.com.au. Data accurate as of 14/02/2024. Value of the cashback you may be offered will vary depending on the lender's eligibility criteria and your specific financial situation. To view more cashback offers, please visit our cashback comparison page.

Frequent Flyer Points

Homeowners who also love to travel may appreciate a mortgage that also helps them to build up frequent flyer points every year.

The Qantas Money Home Loan offers 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). 

Reduced Lenders Mortgage Insurance

Most cashback offers are just for refinancers, but an alternative option sometimes offered to first home buyers is reduced or waived Lenders Mortgage Insurance (LMI).

If your home deposit is less than 20%, LMI can be one of the biggest costs associated with a mortgage, alongside a deposit and stamp duty. Saving a 20% deposit can be extremely difficult, especially if you’re buying in Australia’s capital cities.

While not available from all lenders, a select few may offer to waive or discount the LMI you’re charged. You may still need to pay a minimum deposit (e.g.15%) to benefit from an offer like this. LMI waivers are more likely to be offered to borrowers working in specialist professional fields, such as medicine, law, accounting or engineering.

If no banks are offering waived or discounted LMI, some alternative options to consider include looking into government support from the First Home Owners Grant and/or First Home Guarantee, or looking into getting help from a Guarantor.

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