Home loan cashbacks: will you qualify for up to $10k when you refinance?

In September, there were 15 lenders offering cash back home loan deals, ranging from $2,000 up to $10,000.

Cashback home loan offers can help offset the initial cost of taking out or refinancing a home loan. The process of refinancing a home loan alone can cost anywhere from a few hundred dollars to thousands.

You could use the money from a home loan cashback to help offset some of these upfront mortgage costs. Alternatively, you could put the money towards purchasing new appliances, making home improvements, or even contributing it towards your mortgage payments.

It's important to note that the amount of cashback you're eligible to receive typically depends on key factors like your eligibility, the total loan amount, and your loan-to-value ratio (LVR). For instance, Reduce Home Loans is currently offering a $10,000 cashback deal, however, this particular offer is exclusively available to customers with loans of $2 million or more.

Source: RateCity.com.au. Data accurate as of 06/10/2023. Value of the cashback you may be offered will vary depending on the lender's eligibility criteria and your specific financial situation.

Cashbacks are most commonly offered to customers that are refinancing their mortgages. However, some first home buyers may also qualify for competitive upfront offers, such as reduced or waived Lenders Mortgage Insurance (LMI).

If you have a home deposit under 20%, LMI can be one of the biggest costs associated with a mortgage, alongside deposit and stamp duty. It can cost tens of thousands of dollars, depending on your deposit and the value of your property, which will need to be paid up front or added to your mortgage.

Saving up a 20% deposit can be extremely difficult, especially if you’re buying in Australia’s in capital cities. This is why reduced LMI may be a competitive offer for first home buyers to consider. 

In October 2023, St. George is offering reduced LMI to eligible first home buyers. The offer of $1 LMI is available to eligible first home buyers with a 15% deposit, looking for an owner-occupier home loan under $850,000, and planning on making principal and interest repayments.

Do you have ambitions of travel, as well as home ownership? Then you may want to know that Qantas offers a home loan that provides frequent flyer points for eligible customers every year

The Qantas Money Home Loan offers customers 100,000 Qantas frequent flyer points every year into your account (you must be a Qantas Frequent Flyer Member). This could be enough points to take you across the globe, or take the family around Australia.

This offer is available for first time buyers and refinancers with established properties (no off-the-plan homes or construction loans). The loan is also available to self-employed homeowners (eligibility criteria applies). 

Keep in mind that there is more to a home loan than a deal being offered to you, and it’s always important to compare the interest rates, fees, and features of a loan before applying.

For more information on whether one of the above loans may suit your finances, consider using our Home Loan Calculator to see how potential repayments could fit in your budget.