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Sweeten your refinance: 30 cashback home loan deals up for grabs in August

Sweeten your refinance: 30 cashback home loan deals up for grabs in August

If the latest cash rate hikes have you considering switching to a lower-rate home loan lender, you may be looking for cash back deals to sweeten your refinancing process. This month, there are 30 cash back deals on offer for refinancers and two for new purchases, as well as additional benefits for some eligible customers.

This week marked the fourth consecutive cash rate hike from the Reserve Bank of Australia. Home loan lenders across the country have been hiking variable interest rates on customer mortgages as a result. Some homeowners may be paying upwards of $500 more each month on their mortgage, compared to April 2022 – prior to the first recent hike.

It’s no surprise that the latest data from the ABS shows Australia has broken a record for refinancing, with the value of external refinancing hitting a high of $18.6 billion in June. With two more cash rate hikes occurring since June, it’s likely the rate of refinancing will continue to rise as homeowners seek out lower-rate loans to give themselves a rate cut.

However, with the majority of cashback home loans offered to refinancers, it may be worth comparing your options carefully so you can potentially nab a lower rate loan and cash in your back pocket.

Cashback deals can come in the form of cash-in-hand, often used to cover the switching costs associated with refinancing. This month, there are additional cashback benefits on offer, including waived Lender’s Mortgage Insurance – which can cost tens of thousands of dollars depending on the property value – as well as bonus Qantas frequent flyer points on sign up. Let’s explore the cashback deals for home loans on offer in August 2022.

What cashback deals are on offer this month?

  • Cashback deals

In August, there are 30 lenders offering cash back home loan deals to eligible customers. Only two of these deals are available to new purchases. Cash back deals may be provided in the form of money in your account, a reduction to your principal owing, or as a gift card.

Cashback deals range from $1,000 - $10,000, depending on the size of your home loan. Refinancers are particularly targeted for cashback deals, as it can help to cover the cost of switching or give homeowners extra cash for a new appliance or home upgrade.

Company
Product

Premier Home Loan

Real Time Rating™

4.83

/ 5
Interest Rate

3.19

% p.a

Variable

Comparison Rate*

3.19

% p.a

Repayment

$1,452

monthly

Real Time Rating™

4.83

/ 5
Go to site

Cashback

Get $2,500 cashback when you refinance your home loan ~ Ends in about 2 months
Company
Product

Back to Basics Home Loan Special Offer

Real Time Rating™

4.70

/ 5
Interest Rate

3.22

% p.a

Variable

Comparison Rate*

3.23

% p.a

Repayment

$1,457

monthly

Real Time Rating™

4.70

/ 5
Go to site

Cashback

Receive $3,000 cash when you take out a Suncorp Bank home loan of $750K or more with LVR <=90%. Apply by 30 November 2022, settle by 28 February 2023. Unless withdrawn prior. T&Cs & eligibility criteria apply. ~ Ends in 4 months
Company
Product

Real Deal Home Loan

Real Time Rating™

4.60

/ 5
Interest Rate

3.17

% p.a

Variable

Comparison Rate*

3.21

% p.a

Repayment

$1,449

monthly

Real Time Rating™

4.60

/ 5
Go to site

Cashback

Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. LVR ≤90%. Limited time offers extended. T&Cs apply. ~ Ends in about 2 months
Company
Product

Discount Variable

Real Time Rating™

4.60

/ 5
Interest Rate

3.25

% p.a

Variable

Comparison Rate*

3.27

% p.a

Repayment

$1,462

monthly

Real Time Rating™

4.60

/ 5
Go to site

Cashback

$2000 cashback on Heritage home loan ~ Ends in about 2 months
Company
Product

Basic Home Loan

Real Time Rating™

4.54

/ 5
Interest Rate

3.24

% p.a

Variable

Comparison Rate*

3.26

% p.a

Repayment

$1,460

monthly

Real Time Rating™

4.54

/ 5
Go to site

special

Establishment fee waived on Basic Home Loans of $150k+
Company
Product

Basic Home Loan

Real Time Rating™

4.54

/ 5
Interest Rate

3.24

% p.a

Variable

Comparison Rate*

3.26

% p.a

Repayment

$1,460

monthly

Real Time Rating™

4.54

/ 5
Go to site

Cashback

Receive $4000 in cashback when you refinance

  • Reduced Lender’s Mortgage Insurance

There are cashback deals available to first home buyers, even if they don’t come in the form of cash in your wallet. Another option that may be available to you is waived Lender’s Mortgage Insurance (LMI). This month, several lenders are offering waived LMI to eligible first home buyers.

LMI is one of the most expensive upfront costs of purchasing a property, outside of the deposit and/or stamp duty. It can climb into the tens of thousands of dollars range, depending on the value of the property. It must be paid when a home buyer has a deposit under 20% of the property’s value.

  • 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.
  • For UBank customers, you may be able to gain loan approval with a loan-to-value ratio (LVR) of only 85% without paying LMI.

  • Qantas frequent flyer points

You may be able to earn bonus Qantas frequent flyer points when you sign up for a home loan.

Qudos Bank currently offers 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
Qudos Bank Qantas Points Home LoanUp to 200,000 QFF points.3.69%3.69%200k QFF points when you apply for a new Qantas Points Home Loan between 01/04/22-30/06/22 and settle by 30/09/22.

Source: RateCity.com.au. Data accurate as of 05/08/2022.

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 Georgia Brown before it was published as part of RateCity's Fact Check process.

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