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Home loan cashback deals for November 2021

Home loan cashback deals for November 2021

The Reserve Bank of Australia (RBA) has kept the cash rate on hold yet again at its historic low of 0.10 per cent for November. However, many home loan lenders are beginning to lift rates out-of-cycle with the RBA, indicating a rate rise may be on the horizon.

RateCity analysis found that almost 30 lenders in the last month alone have lifted their fixed rate offerings, with the majority of which being for 2- and 5-year fixed terms. Earlier today, Westpac announced sweeping changes to its popular home loan rates, lifting its 3-, 4- and 5-year fixed rates by up to 0.21%

These changes may hint that Australian home loan lenders are beginning to factor in the likelihood of interest rate increases within the next few years - potentially as early as pre-2024.

So, if higher interest rates may be in the future for homeowners, what can everyday Aussies do to ensure their home loan is competitive? It may be worth exploring some of the cashback offers available to new and refinancing home loan customer for November 2021.

What deals are on offer this month?

Cashback deals

In November, 25 lenders are offering cashback deals, with a majority for refinancers only. Four cashback home loans are available for first home buyers.

Cashback deals can range between $1,000 - $5,000, depending on the lender and the size of your mortgage. Cashback deals may be able to cover some of the costs associated with refinancing, such as application fees, or be put towards the new home through a big-ticket purchase, like a new dishwasher.

Reduced LMI

But what about offers for first home buyers? Bank of Queensland and St. George are offering their customers a reduced LMI deal (as well as the traditional lump-sum cashback).

If your deposit is smaller than 20%, first home buyers will need to pay LMI, which can climb into the tens of thousands of dollars range, depending on your property location. And for those buying in capital cities, a deposit of this size is very difficult to achieve, making LMI inevitable. Waiving this cost for first home buyers may help to reduce the financial stress of saving for a first property.

  • For St. George customers, the offer of $1 LMI is available to eligible first home buyers with a 15% deposit, looking for an owner-occupier home loan, and planning on making principal and interest repayments.
  • For BOQ customers, the $1 LMI offer is available to both owner-occupier and investor first home buyers planning on making principal and interest repayments. Approval is limited to deposits as little as 15% on eligible home loans valued up to $1 million.

Qantas frequent flyer points

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.

LenderQantas Frequent flyer (QFF) points bonusInterest rateComparison rateOffer
Macquarie Bank Basic Flyer Home LoanUp to 170,000 QFF points when you borrow $600k2.19%2.19%10k QFF points for every $100k loan drawn, 1000 QFF points per month for the life of the loan, 25,000 QFF points on the third and fifth anniversary of your loan.
Qudos Bank Qantas Points Home Loan150 QFF for every $1000 of loan balance, no minimum loan balance.2.69%2.69%Earn 150 Qantas Points for every $1,000 on your loan balance p.a., credited monthly. No minimum loan balance – earn points for the life of your loan.

Source: RateCity.com.au. Data accurate as of 04/11/2021.

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

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