Home loan competition heats up as cashback deals hit $3,000

Friday 31 August 2018

Article by Tom Watson

While home loan rate rises have become the norm in the past few months, lenders are still well and truly engaged in a battle for the business of Australian home owners with a number of new, alluring deals hitting the market.

Home loan competition heats up as cashback deals hit $3,000

With the start of the spring property season less than a week away, a number of lenders have launched limited time cashback deals as high as $3,000 for eligible refinancers and new borrowers.

Credit Union SA currently leads the pack in terms of generosity with a $3,000 cashback deal for eligible refinancers willing to make the switch, while Newcastle Permanent and Police Bank are each offering refinancers $1,500 cashback.

RELATED: Home loan cashback bonanza heats up pre-Spring

According to Mozo Director, Kirsty Lamont, the new cashback offers are part of an effort by lenders to increase their market share ahead of spring property season which is expected to be quieter than in previous years.

“House prices across Australia are plateauing and rates are trending upwards, so we’re seeing lenders trying to drum up business by offering these spring cashback sweeteners,” she said.

“While a cashback offer may seem enticing, a thousand-dollar windfall is just a drop in the ocean compared to the savings you could make over the life of the loan. That’s why buyers need to do their research by shopping around and comparing rates and fees on top of any offers.”

Cashback offers in detail

Credit Union SA - Variable Rate Home Loan (Package)

  • The deal: $3,000 cashback
  • The conditions: Eligible homeowners looking to refinance can score up to $3,000 cashback when they refinance their home loan (minimum of $300,000) with Credit Union SA.
  • The deadline: Ongoing, can be discontinued at any time.

Newcastle Permanent - Variable Home Loan (Premium Plus Package)

  • The deal: $1,500 cashback
  • The conditions: Eligible refinancers can grab $1,500 cashback when they refinance their home loan of $250,000 or more with Newcastle Permanent.
  • The deadline: Apply before November 30, 2018.

Police Bank - Goldrate Home Loan (Package)

  • The deal: $1,500 cashback
  • The conditions: Approved refinancers could nab $1,500 when they switch their home loan of $50,000 or more to Police Bank.   
  • The deadline: Apply before 30 September, 2018.

NAB - Base Variable Rate Home Loan

  • The deal: $1,250 bonus
  • The conditions: New borrowers with NAB will be able to pocket a $1,250 bonus on loans of $250,000 or more when they also open a NAB Transaction Account for the bonus to be paid into.      
  • The deadline: Apply before December 2, 2018.

Reduce Home Loans - Reduce Home Loans Rate Buster Escape

  • The deal: $1,000 cashback
  • The conditions: Eligible owner occupiers and investors will be able to take advantage of the $1,000 cash back offer from Reduce Home Loans for loans over $200,000.
  • The deadline: Ongoing, can be discontinued at any time.  

Homestar - Variable Rate Loan

  • The deal: $900 cashback
  • The conditions: Eligible borrowers will be able to grab $900 cashback after settlement with Homestar on loans of $200,000 and above.
  • The deadline: Ongoing, can be discontinued at any time.

RELATED: Five killer home loan deals to put a ‘spring’ in your step

Need to find a way to put some extra cash back in your pocket? One way could be by comparing your current home loan deal with cheaper offers using the Mozo Home Loans Switch and Save Calculator to find out if you could be saving!

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