With the cash rate still stuck at 0.10% and experts predicting a hike from the Reserve Bank of Australia as early as June 2022, you may be looking for a mortgage option that gives as well as possible.
Cash back home loans can help sweeten the home loan deal, whether you’re a first-time home buyer or a refinancer. These can be used to cover some of the costs associated with taking out a mortgage or making a major purchase, such as a new appliance.
From cash on hand to Lender’s Mortgage Insurance (LMI) and bonus Qantas loyalty points, there are a range of benefits lenders can offer eligible customers. Let’s explore the cashback offers on offer for March 2022.
What deals are on offer this month?
Cash back offers for March range from $1,000 to $5,000, depending on the size of your mortgage and the lender.
RateCity’s database shows there are 24 lenders offering repayment deals in March, including the big four banks. The majority of cashback offers are aimed at refinancers.
With many cash back offers only benefiting refinancers, let’s explore the benefits first-time home buyers may be eligible for this month.
Several lenders also offer their customers a reduced LMI offer. If your deposit is less than 20%, you will have to pay the LMI, which can reach tens of thousands of dollars, depending on the location of your property. Removing this cost for first-time home buyers can help reduce the financial stress of saving for a first-time home.
Lenders waiving IMT:
- 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.
- For 86,400 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 at the time of 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||2.19%||2.19%||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||150 QFF for every $1,000 loan balance, no minimum loan balance.||2.69%||2.69%||Earn 150 Qantas Points for every $1,000 on your loan balance per year, credited monthly. No minimum loan balance – earn points for the life of your loan.|
Source: RateCity.com.au. Data accurate as of 03/07/2022.
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 into your budget.