Some bank offers cashback deals to refinance your home loan or buy / purchase a property.

Cashback offers are getting uncommon, only very few banks are still offering them. Likely, there is still some rebate offers on the market. There are definitely more cashback options for home loan refinances, rather than property purchase. However, we can still find some cashback offers on purchases for first home buyers.

What is a cashback offer?

A home loan cashback offer is an incentive provided by lenders to encourage borrowers to take out a mortgage with them. Essentially, it involves the lender granting a certain amount of cash back to the borrower upon settling the home loan.

 How much money in cashback will you receive?

The amount of the cashback can vary significantly between lenders and may depend on various factors, including the loan amount, the property’s value, and the specific loan product. In the past, banks were more generous, we have seen offers up to $6,000; very common to get $2,000 or $4,000 on purchases or refinances. Nowadays, we have on the market offers that starts from $1,000 cashback on refinance, some $2,000 and $3,000 cashback to refinance your mortgage, as well as some $3,000 cashback offer on First Home Buyer purchases.

What are the eligibility criteria?

To qualify for a home loan cashback offer in Australia, borrowers generally need to meet specific criteria set by the lender. Common requirements include:

1. Loan Amount: the loan amount meets a minimum threshold set by the lender. Typically, greater than $250,000, but now is getting more common to find offers with greater limits, such as $400,000, $500,000, and $700,000.

2. Refinance VS Purchase: the home loan might be exclusively for one of those categories.

3. Owner Occupied Home versus Investment Property: Some lenders may restrict the cashback offer depending on the use of the property.

4. Loan size compared to the value of the property: the offer might apply only to specific Loan to Value Ratio (LVR). In other word the loan amount must compared to the value of the property must be specific. Typically, not great than 80%, but we have seen offers up to a 90% LVR or specific above the 80%.

5. Application Timing: Cashback offers may be valid only for loans settled within a specified time frame, so it’s crucial to apply promptly.

6. Affiliated Products: In some cases, to qualify for the cashback might require borrowers to bundle the home loan with other financial products offered by the lender, such as a Lenders Mortgage Insurance (LMI), Package Product, Offset Account, or other.

Before taking advantage of a cashback offer, it’s wise to carefully read the terms and conditions, as there may be strict eligibility criteria. Consulting with a mortgage broker or financial advisor can also provide personalized guidance based on individual circumstances.

Check if you qualify for Cashback offer?

To check if you qualify to any cashback back offer, you can contact our specialist Mortgage Broker. They know which banks are still running cashback offers, has the lowest interest rate for your situation.

We do not look at rebates only, we also consider the interest rate, refinance cost to make sure that you get the best deal possible.

My Sydney Broker specialist can help you.