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 - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    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.
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.
    fixed 3 years
    2.24% p.a.
    Go to site
    Details
  • Hot DealFor a chance to win $100K towards your home loan, apply with Athena before Oct 31 & approved by Dec 15 (Please read the full T&C's)
    placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

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

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.
    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.
    Go to site
    Details
  • Hot Deal$3,000 cashback offer when you refinance your home loan to BOQ. To qualify, apply by 31 October 2021, T&Cs apply.
    placeholder
    Economy Variable Home Loan

    Owner Occupier, Principal & Interest, <70% LVR, Debt to Income ratio <6

    interest rate
    comparison rate
    Initial monthly repayment
    1.98% p.a. variable
    2.15% p.a.
    Details
  • placeholder
    Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    3.67% p.a.
    Go to site
    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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