Looking for a little sweetener for your first or next mortgage? There are 30 cashback deals on offer in July for homeowners looking for a competitive deal, plus additional perks for those who qualify.
Interest rates are officially on the rise and homeowners are no doubt feeling the pinch, with the Reserve Bank of Australia raising the cash rate for a third straight month. Luckily, competitive cashback deals are on offer so you can always find your best mortgage deal in July.
If the latest cash rate hikes are making you feel the financial pinch of your mortgage repayments, it might be worth comparing cash back refinance offers. Refinancing a lower-rate home loan is one way to give yourself a rate hike and collect cash from your back pocket in the process.
And for first-time home buyers entering a higher-rate mortgage market, finding the best deal on a home loan has never been more important. While it’s helpful to compare factors like pricing, fees, and features, it can also be helpful to explore the benefits of a cashback offer.
Cash back offers can come in 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 bonus Qantas frequent flyer points upon registration.
These home loan agreements can be a way for first-time home buyers and refinancers to make taking out a home loan more affordable, especially in a time of rising interest rates. Let’s explore the home loan cashback offers available in July 2022.
What cashback deals are on offer this month?
This month, 30 lenders are offering cashback home loan deals to eligible customers. These cash back offers range from $1,000 to $10,000, depending on the amount of your home loan.
Cash back offers from refinancers make up the majority of July offers and can be provided in the form of cash in your account, a discount on your mortgage or a gift card. These offers are popular with refinancers because they can help cover the cost of the change or give you extra money for a new appliance or upgrade to your home.
Only Reduce Home Loans and Credit Union SA are offering cashback home loan offers for new purchases this month. And two of these cashback offers are only available through a broker (ANZ and Citi cashback offers), so it may be worth talking to a mortgage broker for more information.
- Lender’s Mortgage Loan Insurance Reduction
First-time home buyers are not left out, with another option available to you that could make your mortgage more affordable. Several Australian lenders are currently offering eligible first-time home buyers reduced Lender’s Mortgage Insurance (LMI).
This is one of the highest initial costs for buying a property apart from the deposit and/or stamp duty and is payable to the lender when your deposit is less than 20% of the value of the property. This cost can add up to tens of thousands of dollars very quickly, making waived IMT a competitive reimbursement offer.
- 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 home buyers planning to make principal and interest payments. 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||2.89%||2.89%||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.||3.19%||3.19%||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 07/08/2022.
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.