Home loan interest rates are on the rise again, thanks to a sixth consecutive Reserve Bank of Australia cash rate hike in October. So if you’re considering refinancing to give yourself a rate reduction, why not sweeten the deal and compare cashback offers too?
This month, 32 cash back offers are available to refinancers, six of which are available for new purchases, ranging from $1,500 to $10,000, depending on the value of the property. If cash on hand isn’t your thing, you can also apply for home loans that offer mortgage loan insurance waived from lenders.
Let’s explore the home loan cashback deals on offer in October 2022.
What cashback deals are on offer this month?
As of October, 32 lenders are offering cashback home loan deals to eligible customers. This month’s repayment offers range from $1,500 to $10,000, depending on the size of your home loan.
The majority of them are, once again, available to refinancers. Cashback offers usually come in the form of cash on hand and are often used to cover transfer costs associated with refinancing. 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.
This month, six lenders are also offering cashback deals to first-time buyers. This includes
- Credit Union SA
- MOVE Bank
- Australian unit
- Heritage Bank
- Reduced Lenders Mortgage Insurance
There are other ways for new borrowers to potentially get a discount or benefit when signing up with a lender: waived or reduced Lenders Mortgage Insurance (LMI).
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.
In October, these lenders are offering exempt or reduced IMT to qualifying first-time homebuyers:
- 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.
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.