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Are The $10k Cashback Home Loan Offers Really Legit?

As banks and lenders scramble to fill their books for 2023 they've been making some pretty big offers – the question is are they really worth it?

💸 Right now, there are big cashback deals to both refinance and buy.

🤓 And, yes, they may be good value but definitely read the find print before committing.

What you need to know

Yes, there are lots of deals around for owners and investors but they all have different terms and may have higher interest rates attached.

1. Currently there are offers available between $2K-$10K at various banks around Australia.

2. It's a good idea to check that your loan amount meets the lender's criteria for the offer. Some banks are only offering the cash to owners who borrow a $1m minimum.

3. While cash is good, make sure that the bank also has a competitive interest rate too.

4. Lenders will also often have a lender's mortgage insurance (LMI) caveat – meaning if you own less than 20% of your home you may not qualify for their cashback. And with the market dropping, your home is likely not worth as much now as it was 12 months ago.

5. Consider all the fees; you may have a break-fee and / or need to pay administration costs to switch your loan too .

6. Your borrowing power may have also dropped in the current climate of rising interest rates, e.g. using our borrowing power calculator someone on $90K a year with no other debt and average living expenses could currently borrow around $570K. A year ago that would have been about $710K.

7. It's also worthwhile considering your mortgage goals – is it to pay it off sooner, to have an offset, to pay interest only, etc. – before switching loans and lenders.

The bottom line

Just remember that a good home loan is one that works for you – you might want to borrow a certain amount, want the best fixed rate, or the lowest variable.

🏠 Our best deal right now at Compare Club is: Ubank – with up to $4,000 cashback for eligible new customers (including refinancers) who apply for owner-occupier or investor loans between $250,000 and $1,000,000, and as much as $6,000 cashback for loans $1,000,000 and over.*

👍 There are lots of options out there if you want to, and are able to, refinance.

☎️ So speak to your broker and see what deal might work for you.

The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. 

*Applications must be received between 10 November 2022 and 28 February 2023 and settled by 30 April 2023. All loans must have an LVR of 80% or less. Eligibility criteria, exclusions and other T&Cs apply.