With a second cash interest rate hike hitting homeowners and potential buyers hard in June from the Reserve Bank of Australia, the era of low interest rates is coming to an end. That means finding your best deal on a home loan has never been more important.
Repayment offers on home loans are one of the ways first-time buyers and refinancers can make the process of getting a home loan more affordable, especially in a time of rising interest rates.
These offers can take the form of cash on hand, but also sweeteners such as waived lender’s mortgage insurance – which can cost tens of thousands of dollars depending on the value of the property – as well as credit points. Qantas frequent flyer bonus when signing up.
Let’s explore the home loan cashback deals on offer for June 2022.
What cashback deals are on offer this month?
As of June, 27 lenders are offering cashback home loan deals to eligible customers. These cash back offers range from $1,000 to $10,000, depending on the size of the home loan.
For example, Reduce Home Loans offers a massive $10,000 cash back to customers with $2 million loans. For a homeowner with a mortgage around $500,000, they are more likely to get approved for cash back offers up to $4,000.
The majority of June cash back offers are aimed at refinancers and can be provided as cash in your account, discount on your mortgage, or as a gift card.
Two of these offers are only available through a broker (ANZ and Citi cashback offers), so it may be worth speaking to a mortgage broker for more information.
- Lender’s Mortgage Loan Insurance Reduction
First-time home buyers don’t worry, there are still options available to you to make your home loan more affordable. Many lenders also currently offer reduced Lender’s Mortgage Insurance (LMI), depending on the size of your deposit (loan to value ratio).
Typically, first-time home buyers with a down payment of less than 20% of the property value will be charged LMI. This insurance cost can run into the tens of thousands of dollars, depending on the value of your property. Removing this cost may be an option to reduce the financial stress of home ownership for first-time home buyers.
- For St. George customers, The $1 LMI offer is available to eligible first-time home buyers with a 15% deposit, seeking a homeowner’s home loan and planning to repay principal and interest.
- For BOQ customers, IMT’s $1 offer is available to homeowners and first-time homebuyers who plan to pay down principal and interest. Approval is limited to deposits as little as 15% on qualifying home loans worth up to $1 million.
- For UBank customers, you may be able to get approved for a loan with a loan-to-value ratio (LVR) of just 85% without paying LMI.
- Qantas loyalty 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 are currently offering a home loan sign-up deal that rewards borrowers with Qantas Points. These points may be available upon approval or released during the term of your loan. Plus, you won’t need to spend on qualifying purchases to earn these reward point bonuses.
|Lender||Qantas Frequent Flyer (QFF) Points Bonus||Interest rate||Comparison rate||To offer|
|Macquarie Bank Basic Home Loan Flyer||Up to 170,000 QFF points when you borrow $600,000||2.44%||2.44%||10,000 QFF points for every $100,000 loan taken out, 1,000 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 Loan||Up to 200,000 QFF points.||2.94%||2.94%||200,000 QFF points when you apply for a new Qantas Points home loan between 01/04/22 and 30/06/22 and pay by 30/09/22.|
Source: RateCity.com.au. Data accurate as of 06/08/2022.
Keep in mind that there is more to a home loan than an offer you are offered and it is always important to compare interest rates, fees and features of a loan before applying.
For more information on whether any of the loans above suit your finances, consider using our home loan calculator to see how potential repayments might fit your budget.