Cashback offers from lenders can help refinancers and first home buyers with the cost of establishing a new loan. Savvy helps you compare offers.
Fact checked
Lenders are now offering a variety of incentives to attract new customers to take out home loans. Cashback home loan offers can help to offset the cost of switching loans or establishing a loan for first homeowners, but are they the best option available? Savvy can help you make the best financial decision by comparing home loans all in one place.
Cashback home loan offers are made by lenders as an incentive for potential new customers to take up a new loan with them. Ranging in value from $500 up to around $6,500, these cashback mortgage offers come in the form of either cash offers, or the equivalent reduction in an established loan amount, or the waiving of loan establishment fees to the value of the advertised cashback.
With competition between banks and lenders so fierce, lenders use these cashback home loan offers to entice new customers. Some may offer a fantastic opportunity to first home buyers and refinancers alike, but other such cashback offers need more scrutiny.Â
The bottom line is that the home loan interest rate offered, combined with interest-saving loan features (such as offset accounts and the ability to make lump sum repayments) will probably be far more important long-term to the overall cost of the loan than any small cash incentives. For example, be wary of putting your stock in ‘cashback offers’ which are, in effect, just a waiving of loan establishment fees that may never have been charged in the first place.
Savvy compares home loans and presents financial information about the true cost of loans side-by-side so that you’re able to make the best financial decisions for your particular family’s circumstances.
Make sure your cashback offer is a genuine one
Genuine cashback offers present a great opportunity for first home buyers and refinancers to offset the cost of early exit or break fees and switch loans at no cost.  These great cashback deals come with a very low interest rate and offer genuine cash placed in a linked offset or transaction account that is opened at the same time as the loan is taken out.
Lenders place various limitations and restrictions on home loan cashback refinance offers. They fall into several categories:
Some home loan cashback offers have almost no limiting factors, and cashback offers can be a welcome relief to first homebuyers coping with the high expense of setting up a new home. You should compare offers with Savvy to make sure you’re getting the best interest rate available and the best deal possible.
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Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
