Home loan cashback deals for December 2020

The current low interest rate environment has made nabbing a home loan deal easier than ever before. But there’s more to a good home loan deal than a low interest rate, and a generous signup offer, such as cashback or credit card points, are worth exploring too.

What deals are on offer this month? 

• Cashback deals

A cashback deal on a home loan is a way that lenders can entice new customers on to their books. These deals can range from $1,000 - $4,000 and more, depending on your loan size.

The cashback may be provided in the form of actual cash or taken out of the upfront fees charged on loan approval. Some lenders may also provide cashback in the form of gift cards, so it’s best to check with the lender before applying.

This month, there are 24 lenders offering home loan cashback deals. The majority of offers are for existing homeowners looking to refinance to a new lender. 

This is not surprising, as the current low-rate environment has made refinancing more popular with Aussie borrowers. And with recent ACCC recommendations trying to make switching a home loan easier for borrowers, the number of refinancers may continue to rise through 2021.

But there are a few first home buyer cashback mortgage deals available from:

• Heritage Bank
• 86,400
• Reduce Home Loans
• Police Bank
• BankVic
• Credit Union SA

Cashback deals for December 2020

• Waived LMI

It’s not just cash that home loan lenders are offering home buyers in an effort to attract them on to their books. There are other handy perks you may be able to nab outside of the standard waived upfront fees or reduced interest rates.

Lenders mortgage insurance (LMI) is one of the biggest costs attached to your home loan. If your home deposit or the equity in your home is less than 20 per cent of the loan value, then you will have to pay LMI, whether you’re a first-time borrower or a refinancer.

However, Virgin Money is currently offering waived LMI for some eligible, new owner-occupiers.

Source: RateCity.com.au. Data accurate as of 09/12/2020.

• Qantas frequent flyer points

Home loan deals aren’t just reserved for the mortgage itself. Some mortgage lenders offer Qantas frequent flyer points as sign-up bonus to new customers. This is separate to Qantas frequent flyer credit cards, as the points do not require spending on eligible purchases to claim the sign up bonus.

This month, two home loan lenders are offering bonus Qantas frequent flyer points to borrowers on application approval, and over the course of their loan term.

Source: RateCity.com.au. Data accurate as of 09/12/2020.

• 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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