19 lenders are offering refinancers up to $3,000 cashback to switch home loans
As summer begins competition for borrowers is running hot, especially with lenders dropping home loan interest rates left, right and centre following last month’s Reserve Bank rate cut.
But it’s not just competitive rates being offered up to borrowers. Eligible refinancers who are willing to make the switch to a new variable or fixed rate loan are being courted with one-off cashback deals between $1,500 and $3,000.
In fact, 19 lenders in the Mozo database are currently offering cashback deals, including all four major banks as well as a number of challenger banks, credit unions, building societies and online lenders.
Most of these offers are only available for a limited time though, so to give you a taste of what’s out there we’ve wrapped up four different cashback deals below.
Refinance cashback offers
Virgin Money - Special Offer Reward Me Fixed Rate Home Loan
- $3,000 cashback offer
- 3-year fixed rate of 2.04% (2.73% comparison rate*)
- Extra repayments available (up to $10k p.a)
Virgin Money is giving owner occupiers the chance to lock in a competitive 3-year fixed rate of 2.04% (2.73% comparison rate*) with the Special Offer Reward Me Fixed Rate Home Loan on loans of $300,000 or more. Aside from the low rate, the loan allows for extra repayments up to $10k/year, plus refinancers who apply by January 22, 2021 and have their loan settled by April 23, 2021 may be eligible for $3,000 cashback on new loans of at least $300,000. Just bear in mind that there is a $10 monthly loan service fee.
Suncorp - Fixed Home Loan Special Offer
- $2,000 to $3,000 cash bonus
- 2-year fixed rate of 1.89% (2.94% comparison rate*)
- Free extra repayments (up to $500/month)
Rates don’t get much lower than the 2-year fixed rate of 1.89% (2.94% comparison rate*) available with the Fixed Home Loan Special Offer. Suncorp allows borrowers to make extra repayments towards their loan (free up to $500/month), and though there is a $375 annual package fee, it’s waived for the first year. Suncorp is also offering refinancers a cash bonus of either $2,000 or $3,000, depending on size of the loan, when they apply before December 18, 2020 and have their loan settled by March 26, 2021.
Bank of Queensland - Discount Fixed Rate
- $3,000 cashback
- 4-year fixed rate of 1.99% (2.90% comparison rate*)
- Make up to $5k in extra repayments each year
Not only does the BOQ Discount Fixed Rate home loan come with a super-low 4-year fixed rate of just 1.99% (2.90% comparison rate*), it gives borrowers the opportunity to pay off their loans faster with the extra repayments feature (up to $5,000 per year). Just remember to weigh up the $10 monthly service fee. BOQ also has a limited time cashback offer: eligible refinancers who apply for a new loan of at least $250,000 before December 19, 2020 and settle it by February 28, 2021 will receive $3,000 cashback.
Newcastle Permanent - Special Real Deal Home Loan
- $2,000 cashback deal
- 2.59% variable rate (2.63% comparison rate*)
- Redraw facility and extra repayments available
If you’re looking for a competitive variable rate and a cashback offer to boot, the Special Real Deal Home Loan from Newcastle Permanent could be just the ticket. The loan comes with rates as low as 2.59% (2.63% comparison rate*) for owner occupiers, as well as handy features such as a partial offset account, extra repayments and a redraw facility (fees do apply). Newcastle Permanent is also giving $2,000 cashback to borrowers who refinance their loans (minimum $250,000) as long as they apply by January 31, 2021 and are funded by March 31, 2021.
Ready to compare even more mortgage offers? The Mozo home loan comparison table makes life easy by listing the rates, fees and features on offers from a range of lenders all in one place.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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