Westpac offering refinancers $2,000 cashback as $170b interest-only loans set to expire

By Remy Taylor · · 4 min read
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In an endeavour to win over Aussie refinancers coming off interest-only home loans, lenders big and small are attaching all the bells and whistles to their mortgages. With the nation's second-largest mortgage lender, Westpac now offering $2,000 cashback for borrowers refinancing mortgages.

Refinancers can snag the cash rebate if they switch to the Premier Advantage Package with a loan of at least $250,000. New borrowers can also grab $1,000 cashback, but get in quick, you’ll need to apply before March 31, 2019.

The offer signals a trend of lenders cutting rates or offering big cash incentives, in order to get their hands on some of the record $170 billion of interest-only loans set to expire during the next two years.

“As property prices and loan volumes continue to fall, banks are keen to build market share and boost buyer confidence by offering up incentives like this,” said Mozo’s Director Kirsty Lamont.

Other cashback home loan offers

Commonwealth Bank$2,000 cashback for refinancers that apply before 8 April 2019 and have their loan funded by 18 June 2019, with a minimum refinance amount of $250,000.
Community First Credit Union$500 cashback for Accelerator Package loans taken out before 31 March 2019 with Lender’s Mortgage Insurance.
Homestar$700 Cashback upon settlement of a Variable Rate Loan (LVR 70-80%, Owner Occupier, Principal & Interest) for refinancers
Hume Bank$1,500 cashback on refinanced principal & interest home loans over $200,000.
St.George$2,000 cashback when you refinance or $1,500 when you buy a home under the Advantage Package with a minimum loan size of $250,000 (excludes refinances from Bank of Melbourne, Westpac, St.George, BankSA and RAMS).
Suncorp$1,000 cash payment when you take out an eligible home loan that requires Lenders Mortgage Insurance.


Is the Westpac cashback offer worth it?

The interest rate on the Premier Advantage Package Westpac loan for a $300,000 loan is 4.58%. Over the life of a 25-year loan, this means paying $204,345 in total interest.

Compare this to the lowest rate in the Mozo database, 3.44% from Reduce Home Loans Rate Slasher which, for the same loan, would mean $147,670 total interest. That’s a difference of $56,675!

“In the face of numbers like that, you have to ask yourself if a $2,000 cashback offer is the best option, or if you’re better off with a lower rate in the long run,” said Lamont.

“Bring in the $395 annual package fee into the equation and that $2,000 will be outweighed pretty quick.”

So if you’re coming off an interest-only mortgage and looking to refinance, then check out the home loans on offer below.

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Last updated 24 November 2024 Important disclosures and comparison rate warning*

Refinance home loan comparisons on Mozo

Promoted

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    5.74 % p.a.
    Fixed 3 years
    Comparison rate
    6.81 % p.a.
    Initial monthly repayment
    $2,915

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    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.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

Showing 6 of 430 home loans. Use the filters to see more
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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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