BREAKING NEWS: RBA holds cash rate at 4.35% in June 2024Learn more
RateCity.com.au
  1. Home
  2. Home Loans
  3. News
  4. Home loan cashbacks: will you qualify for up to $10k when you refinance?

Home loan cashbacks: will you qualify for up to $10k when you refinance?

Mark Bristow avatar
Mark Bristow
- 5 min read
Home loan cashbacks: will you qualify for up to $10k when you refinance?

Higher living costs mean that Australians looking to buy or refinance a home may be keen to offset some of their loan costs with a mortgage cashback deal. But with only a limited number of home loan cashbacks available, it’s important to compare your options and work out if you fulfil the offer’s terms and conditions.

In October 2023, there are 15 lenders offering cashback deals. This is down from a 2023 peak of 35 in March, but still consistent with the previous month. 

This shrinking cashback market can be partially attributed to the last year of rising home loan interest rates, which pushed more borrowers to refinance. This high volume of customers meant lenders took many of their cashback deals off the table. Even ANZ, the last of the big four banks still offering cashback deals, announced it would be halving its offer from $4,000 to $2,000 in August 2023.

But both refinancers and first home buyers still have cashback deals to consider, as well as other competitive incentives. Just be sure to compare factors beyond the cashback offer, and make sure the deal suits your financial situation and personal goals.

Let’s explore all the cashback home loan deals available for new borrowers and refinancers in October 2023:

Cashback home loan deals on offer in October

Cashback

In September, there were 15 lenders offering cash back home loan deals, ranging from $2,000 up to $10,000.

Cashback home loan offers can help offset the initial cost of taking out or refinancing a home loan. The process of refinancing a home loan alone can cost anywhere from a few hundred dollars to thousands.

You could use the money from a home loan cashback to help offset some of these upfront mortgage costs. Alternatively, you could put the money towards purchasing new appliances, making home improvements, or even contributing it towards your mortgage payments.

It's important to note that the amount of cashback you're eligible to receive typically depends on key factors like your eligibility, the total loan amount, and your loan-to-value ratio (LVR). For instance, Reduce Home Loans is currently offering a $10,000 cashback deal, however, this particular offer is exclusively available to customers with loans of $2 million or more.

Lender

Cashback

Refinancers

New loans

Notes

ANZ

$2,000

Yes

No

Cashback of $3,000 for first home buyers.

Bank of China

$4,000

Yes

Yes

Bank of Melbourne

$2,000

Yes

No

Bank of Queensland

$2,000

Yes

No

BankSA

$2,000

Yes

No

HSBC

$3,288

Yes

No

IMB Bank

$2,500

Yes

No

Max cashback for loans over $250K.

ME Bank

$2,000-$3,000

Yes

No

Max cashback for loans above $700k and 20% deposit.

RAMS

$3,000

Yes

No

Rebate of $1,000 for first home buyers

Reduce Home Loans

$2,000-$10,000

Yes

Yes

Max cashback for loans over $2M.

St. George Bank

$2,000

Yes

No

Loans.com.au

$2,000-$4,000

Yes

No

Available on loans of $250k and above. Exclusive to aggregators

Defence Bank

$4,000

Yes

No

Exclusive to DHOAS loans

RACQ

$2,000

Yes

No

Refinance above $500k.

Newcastle Permanent

$2,000

Yes

No

Source: RateCity.com.au. Data accurate as of 06/10/2023. Value of the cashback you may be offered will vary depending on the lender's eligibility criteria and your specific financial situation.

Reduced Lenders Mortgage Insurance

Cashbacks are most commonly offered to customers that are refinancing their mortgages. However, some first home buyers may also qualify for competitive upfront offers, such as reduced or waived Lenders Mortgage Insurance (LMI).

If you have a home deposit under 20%, LMI can be one of the biggest costs associated with a mortgage, alongside deposit and stamp duty. It can cost tens of thousands of dollars, depending on your deposit and the value of your property, which will need to be paid up front or added to your mortgage.

Saving up a 20% deposit can be extremely difficult, especially if you’re buying in Australia’s in capital cities. This is why reduced LMI may be a competitive offer for first home buyers to consider. 

In October 2023, St. George is offering reduced LMI to eligible first home buyers. The offer of $1 LMI is available to eligible first home buyers with a 15% deposit, looking for an owner-occupier home loan under $850,000, and planning on making principal and interest repayments.

Frequent Flyer Points

Do you have ambitions of travel, as well as home ownership? Then you may want to know that Qantas offers a home loan that provides frequent flyer points for eligible customers 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). 

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.

Compare home loans in Australia

Product database updated 22 Jun, 2024

This article was reviewed by Mia Steiber before it was published as part of RateCity's Fact Check process.