Major banks turn their back on home loan cashbacks

someone holding a small house

Home loan customers will be interested to know that some banks are ending their current cashback offers for refinance home loans.  

Commonwealth Bank and NAB are among those scrapping cashback offers as we approach mid-year.

For example, CommBank is ending its $2,000 cashback offer by 31 May. The bank says this has come about due to squeezing interest margins - a concern that is contrary to its recent financial success.

NAB’s digital bank Ubank also ended its $4,000 - $5,000 cashback offer in April, while NAB itself is ending its $2,000 cashback offer in June.

While NAB hasn’t given an official statement as to why, the bank’s group executive of personal banking Rachel Slade said at the Australian Financial Review Banking Summit in March, “I hate cashbacks. I look forward to the day where they don’t exist in the market.”

What are cashback offers?

Cashback offers are a strategy to encourage mortgage holders to refinance their home loans with a new lender. The lender offers you cash (usually several thousand dollars) as a benefit for switching your home loan.

While it might seem like an amazing benefit, keep in mind that not all loans that have cashback perks offer better interest rates. In fact, some of them might be a bit higher compared to refinancing to a home loan product without a cashback offer. 

Currently, there are 25 lenders who provide cashback offers. Amongst them are Westpac with a $3,500 cashback offer, ANZ with a $4,000 cashback offer, and Bank of Queensland with a $3,000 offer if you apply by 8th September 2023. 

For more information on lending trends, head over to our home loan statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo - last updated 5 December 2023

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    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

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    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

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    Variable Rate Home Loan Special Offer

    Package, Owner Occupier, Principal & Interest, LVR<80%

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    6.14% p.a. variable
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  • Mortgage Simplifier

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    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws. Winner of Australia’s Best Essential Bank in the Mozo Experts Choice Awards.

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  • Basic Home Loan

    Owner Occupier, LVR<70%, Principal & Interest

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    6.14% p.a. variable
    6.16% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 30% Deposit required.

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* 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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