P&N Bank has a new $3,000 cashback offer, and it’s not just for mortgage refinancers

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Western Australian-based P&N Bank has joined a growing list of Australian lenders offering extra incentives to home loan customers with the launch of a new cashback offer.

Announced yesterday, the customer-owned bank will provide new mortgage customers with $3,000 cashback when they take out a loan which is worth $250,000 or more and has a loan-to-value ratio (LVR) of 80% or less.

In addition to being available to owner occupiers and investors, P&N’s cashback offer is available on both new and refinanced loans - a distinction which senior manager of retail distribution, Gemma Hay, says is unusual.

“Cashbacks are typically only available for customers who are looking to refinance from other banks, and P&N is one of the few banks in Australia to also extend a cashback offer to customers looking to purchase a new home."

This point is confirmed by our own data. Of the 25 cashback offers available from lenders being tracked in the Mozo database, the vast majority are only available to refinancers. In fact, one of the few exceptions is the cashback deal of up to $5,000 currently being offered by fellow customer-owned bank BCU - a subsidiary of P&N Bank.

While the promise of a cash incentive may be appealing to many borrowers, a recent Mozo analysis found that other loan features may be worth prioritising when it comes to saving money - namely, getting the lowest interest rate possible.

So on that front, how do P&N Bank’s home loan rates stack up? Here are two examples:

& Basic Home Loan

P&N Bank’s & Basic Home Loan is a low-cost option available to owner occupier borrowers who aren’t fussed about having features like an offset account. As the table below shows, its variable rates at the <80% LVR tier are considerably lower than our database average.

Variable rateMozo average
Owner occupier (60-90% LVR)2.49% p.a. (2.49% p.a. comparison rate*)3.14%

Fixed Rate Home Loan

P&N Bank’s Fixed Rate Home Loan is another relatively low-cost option, this time for borrowers looking to lock in a rate for 1-5 years. Again, as the table below shows, it’s rates for owner occupiers (<80% LVR) are currently all lower than our database averages.

Fixed rateMozo average
1-year2.09% p.a. (3.71% p.a. comparison rate*)2.29%
2-year1.99% p.a. (3.54% p.a. comparison rate*)2.24%
3-year2.09% p.a. (3.42% p.a. comparison rate*)2.34%
4-year2.39% p.a. (3.38% p.a. comparison rate*)2.58%
5-year2.69% p.a. (3.40% p.a. comparison rate*)2.81%

To sum up, while there are certainly lower rates out there, the two loans outlined above are both offering competitive interest rates - at least, compared to other loans being tracked in our database. There are also a number of other loans on offer from P&N, which you can view for yourself at our P&N Bank home loans hub.

RELATED: Multiple lenders are offering $3,000 cashback to refinance your home loan

Ready to see if you can grab a better deal on your own mortgage? See how it stacks up against some of the hot refinancing deals listed in the table below, or head on over to our refinance home loan comparison table to compare it to even more offers from a larger selection of lenders.

Refinance home loan comparison - last updated 24 January 2022

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Smart Booster Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Details
  • Mozo Expert Choice Badge
    UHomeLoan - Discount Offer
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    Details
  • Mozo Expert Choice Badge
    Celebrate Variable Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a. variable
    1.89% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    Details
  • Variable Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Same low variable rate for all. No upfront or ongoing fees. Approval in minutes not weeks with a fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet (Apple and Google Pay). Refinance only. 25% deposit or equity required.

    Details
  • Mozo Expert Choice Badge
    Variable Home Loan Special
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

    Details
  • Basic Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    2.14% p.a. variable
    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

    Details
  • Discounted Home Value Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.97% p.a. variable
    1.98% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Plus, $3,288 cashback offer (conditions apply).

    Details
  • Special Real Deal Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    2.22% p.a. variable
    2.26% p.a.

    No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly) . $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent.

    Details

* 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, loan amount and term entered. 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.

^See information about the Mozo Experts Choice Home Loan Awards

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