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The great cashback escape: 8 banks drop their deals in one day

Eden Radford avatar
Eden Radford
- 4 min read
The great cashback escape: 8 banks drop their deals in one day

Just 15 lenders are now offering cashback deals, down from a record high of 35 in March 2023.

The start of the new financial year (1 July) saw eight lenders drop these contentious offers overnight including Westpac, NAB, ING and AMP Bank.

The database shows: 

  • ANZ is the only big four bank still offering a cashback deal. The bank is offering up to $4,000 for select refinancers and up to $3,000 for first home buyers.
  • Westpac subsidiaries St George, Bank of Melbourne and Bank SA have reduced their cashback offers from $4,000 to just $2,000.
  • The highest cashback offer is from Reduce Home Loans at $10,000, however, this is only for loans of over $2M and not available on the lender’s lowest rate.

Cashback timeline: 

March 202335 lenders are offering cashback incentives for home loan customers. This is record-high.
9 May 2023Australia’s biggest bank, CBA, announces it will end its cashback offer at the end of the month. At this point, there are 29 lenders offering these cash incentives.
1 June 202326 lenders remain in the cashback game, with another three ditching the popular perk.
1 July 2023Just 15 lenders still offer cashback incentives to home loan customers.

List of lenders still offering home loan cashback deals on

LenderCashbackRefiNew loansNotes
ANZ$2,000-$4,000YesNo$3K for first home buyers.
Bank of China$2000-$4,288YesYes$2K for new purchases.
Bank of Melbourne$2,000YesNo
Bank of Queensland$3,000YesNo
Greater Bank$3,000-$4,000YesYesMax cashback for loans over $500K.
imb bank$2,000-$4,000YesNoMax cashback for loans over $500K.$2,000-$4,000YesNoAvailable on loans of $250K and above.
ME Bank$2,000-$4,000YesNoMax cashback for loans with 40%+ deposit.
Newcastle Permanent$2,000-$3,000YesNoMax cashback for loans over $500K.
RAMS$4,000YesNoRebate of $1,000 for first home buyers
Reduce Home Loans$2,000-$10,000YesYesMax cashback for loans over $2M.
Regional Australia Bank$3,000-$4,000YesNoMax cashback for loans over $500K.
St. George Bank$2,000YesNo


Comparison: Refinancing to ANZ vs lowest rate

Monthly repaymentsInterest - next 1 year
July rateMonthly repaymentsDifferenceTotalDifference
ANZ Refi6.29%$3,311$28,693
Refi to one of the lowest rates5.75%$3,146$165$30,494-$1,801

Source: research director, Sally Tindall, said: “Banks are exiting the cashback scene in a collective bid to sandbag the refinancing revolution currently taking hold of the nation.”

“CBA kicked off the exodus back when it announced on the 9th of May it was wrapping up its cashback. Just eight weeks later and 13 lenders have followed,” she said.

“The big bank continuing to buck the cashback trend is ANZ. It’s still offering up to $4,000 cashback for customers willing to jump ship.

“While ANZ’s rates aren’t the most competitive in the market, some customers will no doubt be drawn to the sugar hit of up to $4,000 in cold hard cash.

“This move is likely to win ANZ a greater share of the refinancing pie, however with bank profit margins under the pump, the question is, how long will ANZ keep the offer open?

“With 15 lenders still in the cashback game, borrowers planning to switch regularly could potentially still end up again on these deals, provided they’ve got a relatively small loan ad they don’t shell out excessive amounts in switch fees.

“However, households looking for lasting relief are likely to be better off spending their time looking for an ultra-low rate and haggling with their new bank to waive any associated fees.

“Despite the cashback exodus, refinancing in May hit a near record high, with almost $21 billion worth of mortgages switching in just one month.

“This kind of refinancing activity will keep the heat in the market that many of the heavy hitters are desperately trying to cool,” she said.

Compare home loans in Australia

Product database updated 20 Jun, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.