Competition among lenders to attract home loan refinancers appears to be heating up with a spate of new cashback offers as high as $4,000 hitting the market in recent weeks.
One of the latest deals is from Suncorp which has just rolled out a three-tiered cashback offer for eligible owner occupiers and investors, including a special for COVID-19 frontline workers.
The offers are available to new refinancers who apply by July 10 and settle their loan by November 10. Here are the tiers:
- $2,000 cashback: For eligible refinancers on loans between $250,000 - $749,999 with an LVR below 90%.
- $3,000 cashback: For eligible refinancers on loans over $750,000 with an LVR below 90%.
- Extra $1,000 cashback: For eligible health, education or emergency services workers, meaning potential cashback of up to $4,000.
“As many Australians manage the financial strain of coronavirus, this offer will support households by putting cash in the pockets of Australian homeowners,” said Suncorp’s executive general manager for lending, Glenn Haslam.
“We understand that customers want the choice – to use this extra cash to help with the household budget or to own their home sooner.”
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Suncorp isn’t alone though, as seven other lenders in the Mozo database also have cashback offers available at present.
- 86 400 - Eligible borrowers taking out a home loan of $250,000 or more could receive $2,000 cashback with neobank 86 400 when they apply before June 30 and settle by August 31.
- Bank of Melbourne - Borrowers with a minimum loan size of $250,000 may be eligible for $2,000 cashback per property when they apply to refinance with Bank of Melbourne before May 29 and settle by July 31.
- BankSA - Owner occupiers looking to refinance could be eligible for $2,000 cashback per property when they apply to refinance a loan above $200,000 with Bank SA by May 29 and settle before July 31.
- Commonwealth Bank - Borrowers who refinance $250,000 or more with CommBank may be eligible to receive up to $2,000 cashback when they apply before August 3 and have their loan funded by October 9.
- MOVE Bank - Eligible investors and owner occupiers could receive $1,000 cashback when they apply for a loan of $500,000 or more with MOVE Bank by June 30 and have it settled by July 31.
- St.George - St.George is offering eligible refinancers $2,000 cashback per property when they apply by May 29 and settle their loans by July 31.
- Virgin Money - Eligible borrowers with a minimum loan size of $300,000 could receive $2,500 cashback when they apply for a Reward Me Home Loan before May 25 and have it settled before August 31.
While the idea of snagging a cashback deal may be an alluring prospect for refinancers, Mozo Banking Expert, Peter Marshall, recommends that borrowers still need to do their homework first. “Everyone loves to get a bit of cash in their pocket, but cashback offers are often just a way for lenders to offer a price incentive without necessarily locking people into low rates for a long period,” he said.
“When comparing loans take any cashback offer into consideration with what you’d also pay in the way of interest and fees over the life of the loan, because you might find that $2,500 cashback doesn’t actually amount to much on a large loan over several decades.”
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Ready to crunch the numbers to see how much refinancing could save you? Compare your existing home loan side-by-side with another offer using our handy home loan comparison calculator.
Otherwise start your search by checking out some of the hot offers in the table below, or head on over to the Mozo home loan comparison tables for the latest rates from even more lenders.