Home loan deals: 6 cash back offers rewarding borrowers in February

Wednesday 22 February 2017

Article by Roisin Kelly-Goldsmith

It’s been a rocky start to the year in the world of home loans. Providers have continued to increase investor and owner occupier interest rates, despite the RBA keeping the cash rate on hold.

home-loan-deals-cash-back 

And to make matters worse, more rate increases are expected to come, as experts predict the Reserve Bank will lift rates sometime in the mid year.

It might sound all doom and gloom when you consider the market as a whole. But if you scratch the surface, our database shows there are still competitive deals to be found, if you’re willing to look - and they come with free cash too!

Here are the top 6 cash back offers available now…

1. NAB - Tailored Home Loan (Fixed, Choice Package)

  • Interest rate: 4.09%, fixed for three years, (4.71% comparison rate)
  • Cash back offer: $1,500

Big bank NAB recently launched a banking bundle to tempt borrowers, so if you’re already a fan of the major lender this deal could suit you. To qualify for a free $1,500*, you’ll need to sign up for a NAB credit card and transaction account (unless you already have one), then take out a new mortgage with the bank, like its Tailored Home Loan (Choice Package).

Boasting a highly competitive three year rate at 4.09%, this home loan package allows you to make extra repayments up to $20,000 within the fixed rate period. And, if you’re looking to get the best of both worlds when it comes to interest rates, you can split your mortgage between fixed and variable. Sold already? Just make sure you factor in the annual $395 service fee.

* To qualify for the deal (which expires on February 28), you’ll need to borrow at least $250,000. For other Ts and Cs visit NAB.

2. St.George - Fixed Home Loan (Advantage Package)

  • Interest rate: 4.09%, fixed for three years (4.72% comparison rate)
  • Cash back offer: $1,500

Want to protect yourself from future rate hikes? Well the St.George Fixed Home Loan (Advantage Package) could be for you. Not only will you receive a competitive 4.09% rate for the first three years, but if you’re refinancing you’ll be rewarded with a generous $1,500 cash back offer (for loans over $250,000).

To top things off, with this loan you have the flexibility to make extra repayments up to $10,000 annually, plus you can access a free redraw facility and partial offset account. Just keep in mind, there is a $395 annual fee and sign up cost to budget for.

3. Bank of Sydney - Expect More Home Loan (Package)

  • Interest rate: 3.79%, variable (4.19% comparison rate)
  • Cash back offer: $500

If you’re looking for a low, variable rate loan that comes with practical features, Bank of Sydney’s Expect More Home Loan (Package) lives up to its name. Because in return for signing that dotted line as a new mortgage customer, BOS will top up your credit card* with $500.

With this home loan package you’ll be charged interest at 3.79%. There’s also a convenient offset account and redraw facility to dip into extra repayments, ticking a fair few boxes in terms of flexibility. The Expect More Home Loan has a yearly fee of $395.

*Not a cardholder? The good news is that signing up for a Sydney Classic or Platinum Credit Card to redeem this offer wipes out the annual fee.

4. Defence Bank - Premier Home Loan (variable)

  • Interest rate: 3.90%, variable (3.90% comparison rate)
  • Cash back offer: $1,600

Would you settle on a loan providing minimal features, if it came with a rate as low as 3.90% and next to no fees? Enter Defence Bank’s Premier Home Loan, where the interest and comparison rate is only 3.90%. And until February 28, new customers will get an even better deal with $1,600 cash back* (minimum loan amount is $250,000).

Despite not having an offset account, this home loan does allow you to make fee-free repayments and dip into them via a redraw facility. Just remember, that the rate is subject to change.

*Check Defence Bank’s official site for further Ts and Cs on this offer.

5. Police Bank - Premium Home Loan (fixed)

  • Interest rate: 4.04%, fixed for three years (4.63% comparison rate)
  • Cash back offer: $1,000

Owner occupiers ready to refinance, check out this $1,000 switching incentive by Police Bank for new customers. You only need to borrow $50,000 to qualify, making it an accessible deal for those carrying less debt.

Because Police Bank’s Premium Home Loan comes with a three year fixed rate, you’ll be shielded from potential rate hikes over the next few years. But if you have an inkling that variable rates may drop in the near future, you could balance your risk by opting for the split rate option attached to this loan. Another nifty feature that Police Bank provides in the Premium Home Loan is a redraw facility, so you can draw on additional mortgage repayments. Factoring in a few set up costs, refinancing to this loan will set you back $995.

6. SCU - Fixed Rate Loan

  • Interest rate: 3.69%, fixed for three years (4.70% comparison rate)
  • Cash back offer: $500

If securing an interest rate for three years that sits below 4.00% is important to you, take a look at SCU’s fixed rate loan, that not only comes with a 3.69% rate attached but gives you $500 cash back (if you borrow $150,000 or more).

Stand out features in this mortgage includes an extra repayment and redraw facility, while giving you the option to split your rate between fixed and variable. Keep in mind, you’ll need to fork out $673 to sign that dotted line.

Tips for tracking a top home loan deal

  • Dig around for a mortgage with all your favourite features. Your financial situation is unique, so why shouldn’t your home loan be? The perfect deal for you may provide a redraw facility, offset account, or even a split rate function. Choose one with suitable features to make your mortgage repayments a breeze.
  • Look at what the provider you’re comparing is known for. There’s a range of lenders out there, from banks through to credit unions. Settle on one with a track record you’re happy with, whether it’s in the form of customer service or competitive rates. Don’t forget to check out Mozo’s reviews hub too, where you can read up on the experiences of Aussie borrowers just like you.
  • Calculate potential repayment scenarios. No need to do the maths in your head. Plug rate details into our nifty calculator to see what your repayments could really look like with the deal you’re considering.
  • Compare as many home loans as you can. With 511 mortgages to compare from here at our dedicated hub, this tip couldn’t be easier to carry out!

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