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

By Remy Taylor ·

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.

Refinance Home Loan Offers - 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.

    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.

    Go to site
    Details
  • placeholder
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.95% p.a.
    fixed 3 years
    2.27% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

    Go to site
    Details
  • 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.

    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.

    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.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Comes with Visa debit card and the ability to use digital wallets; Apple and Google Pay. 25% deposit required.

    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.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.