If the latest cash rate hikes have you considering switching to a lower rate mortgage lender, you may be looking for cash back offers to smoothen your refinancing process. This month, there are 30 cash back offers for refinancers and two for new purchases, along with additional benefits for certain eligible customers.
This week marked the Reserve Bank of Australia’s fourth consecutive cash rate hike. As a result, home lenders across the country have raised variable interest rates on customer mortgages. Some homeowners could be paying more than $500 more each month on their mortgage, compared to April 2022 – before the first recent hike.
It’s no surprise that the latest ABS data shows Australia broke a refinancing record, with the value of external refinancing peaking at $18.6 billion in June. With two more cash rate hikes since June, it is likely that the refinance rate will continue to rise as homeowners seek lower rate loans to give themselves a rate cut.
However, with the majority of cash back home loans available to refinancers, it may be worth carefully comparing your options so that you can potentially secure a lower rate loan. and money in your back pocket.
Cashback offers can take the form of cash on hand, often used to cover transfer costs associated with refinancing. This month, additional repayment benefits are on offer, including Canceled Lender’s Mortgage Insurance – which can cost tens of thousands of dollars depending on the value of the property – as well as bonus Qantas frequent flyer points when registration. Let’s explore the home loan cashback deals on offer in August 2022.
What cashback deals are on offer this month?
As of August, 30 lenders are offering cashback home loan deals to eligible customers. Only two of these offers are available for new purchases. Cash back offers can be provided in the form of cash in your account, a reduction of your principal due or a gift card.
Cash back offers range from $1,000 to $10,000, depending on the size of your home loan. Refinancers are particularly targeted for cash back offers because it can help cover the cost of switching or give homeowners extra cash for a new appliance or home upgrade.
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Cash back Get $2,500 Cash Back When You Refinance Your Home Loan ~ Ends with about 2 months |
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Home loan special offer back to basics |
Cash back Receive $3,000 cash when you take out a Suncorp Bank home loan of $750,000 or more with LVR ~ Ends with 4 months |
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Cash back Refinance and get up to $3,000 cash back. $2,000 cash back on loans ≥ $250,000; $1,000 bonus on loans ≥ $500,000. RLV ≤90%. Limited time offers extended. The T&Cs apply. ~ Ends with about 2 months |
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Cash back Refinance your home loan with ME Bank and receive $2,500 cash back ~ Ends with 26 days |
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Cash back $3,000 Refinance Cash Back ~ Ends with about 2 months |
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special Set-up fee waived on basic home loans of $150,000 and over |
- Lender’s Mortgage Loan Insurance Reduction
There are cashback offers available to first-time 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 to waive Lender’s Mortgage Insurance (LMI). This month, several lenders are offering exempt IMT to qualifying first-time homebuyers.
LMI is one of the most expensive initial costs for buying a property, aside from 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 down payment of less than 20% of the value of the property.
- 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.
Qudos Bank is currently running a home loan sign-up offer 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 |
| Qudos Bank Qantas Points Home Loan | Up to 200,000 QFF points. | 3.69% | 3.69% | 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 08/05/2022.
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.