Are refinance cashback deals worth it?

We cover the most frequently asked questions about refinance cashback deals to help you navigate the home loan process

09 February 2022|2 minute read

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Looking to refinance your home loan? You might have come across a few refinance cashback deals in your search for the best home loan rates and offers. If you’re wondering whether it’s worth looking into, or if it sounds too good to be true, you’re in the right place.

We’ll cover what a refinance cashback deal is, why lenders offer it, who is eligible and if it’s worth it.

What is a refinance cashback deal?

A refinance cashback deal is an incentive or reward lenders provide borrowers for choosing their product.

Cashback offers usually come in the form of cash payment but some lenders will instead offer gift cards for certain brands or stores, or cut fees borrowers would normally be charged.

Which lenders offer refinance cashback deals?

Refinance cashback deals and other home loan incentives are prone to change month-to-month and different lenders offer varying deals.

It’s a good idea to check in with your local Aussie Broker to find out the latest information on current deals and offers. They’ll also be able to identify which cashback offers you’re eligible for and which will cater to your home loan needs.

Why do lenders offer cashback deals?

Lenders typically offer cashback deals as an incentive to prospective borrowers. This enables them to attract new customers and helps them remain competitive in a crowded home loan market.

How much cashback could you get on refinancing?

Cashback amounts can vary and will depend on the lender. It’s common to see cashback offers of around $2,000 - $4,000.

Note that you won’t get cashback on all refinances. These offers are only available from select lenders and deals are subject to change on a regular basis.

Does cashback apply to both fixed and variable rate home loans?

Generally, yes. Many cashback offers include the option to refinance with a fixed or variable rate home loan but it’s a good idea to check this with the lender.

Are both investors and owner-occupiers eligible for a cashback?

Generally, yes. Many cashback offers are available to all homeowners who meet the eligibility criteria. This may include both owner-occupiers and investors.

There may be some deals exclusive to one or the other, so it’s a good idea to check this with the lender.

Is a refinance cashback deal worth it?

This depends on several factors, including the offer on the table, your current financial situation and your home loan needs.

While refinance cashback deals are a great way to increase cash flow, it’s important to look at the offer as a whole by asking the following questions:

  • Will you have access to the home loan features you need?

  • Is the home loan interest rate comparable to others on the market?

  • Does the lender offer a level of customer service that meets your needs?

Although it’s tempting to jump the gun and choose the deal with the highest cashback, it’s important to consider if the overall offering is right for you.

It’s possible that a standard refinance with a competitive interest rate, low loan fees and the features you want will suit you better. There are many refinancing loan options to consider.

How can you be eligible for a refinance cashback deal?

To be eligible for cashback, you will need to meet the requirements outlined by the lender and apply for a refinance during the time the offer is still available. Typically, the criteria will require you to:

  • Sign up as a new customer

  • Have a maximum Loan to Value Ratio (LVR) of 80%

  • Meet a minimum lending amount (e.g. $250,000 loan amount)

  • Send in your application by a certain date

  • Settle your loan by a certain date.

Each lender will have a slightly different set of criteria so it’s important to check and make sure you meet their individual requirements.

Are you interested in refinancing your home to get a better interest rate? Or are you curious about the refinance cashback deals out there?

Your local Aussie broker is happy to help. Book an appointment at a time most convenient for you to talk about your options.

Book a chat with an Aussie Broker

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