*iSelect is the trading name of iSelect Mortgages Pty Ltd (ABN 86 148 217 181). iSelect Mortgages Pty Ltd is a credit representative (Credit Representative 400540) of Auscred Services Pty Ltd (Australian Credit Licence 442372). iSelect provides a referral to Lendi Pty Ltd ACN 611 161 856 (Lendi) who provides credit assistance. Lendi is a credit representative of Auscred Services Pty Ltd (ACN 164 638 171) (Licensee). iSelect Mortgages Pty Ltd receives a commission from the Licensee for each new customer account created and for each home loan submitted through this service.
We partnered with Lendi* to help you compare home loans from over 25 lenders and over 2,500 home loan products.
Cashback refinancing is where lenders offer a lump sum of cash as an incentive to refinance with them. For example, a lender who we’ll call ‘Bank B’, might offer you $3,000 as an incentive to switch your home loan from ‘Bank A’ (your current lender) to them, Bank B. Then once the loan has settled with the new lender, you’ll receive the $3,000 cashback.
Refinancing is the process of switching from one loan product to another, usually to take advantage of a more competitive interest rate or better terms on offer from a different lender. The typical process is that you use the proceeds from your new loan to repay your existing loan, and then you begin making repayments to your new lender.
As mentioned earlier, you’re usually only able to access the money from the cashback offer once your new loan has settled.
Just like any company running a promotion, any single cashback refinance offer may only be available for a certain window of time. But don’t feel pressured to make a decision just because the offer will expire. Lender’s often run cashback refinance offers, and it’s important to take the time to understand if the offer as a whole makes financial sense before making a decision.
A cashback offer can be a tempting prospect, but it’s important to do your homework to ensure the refinance offer makes financial sense and isn’t going to end up costing you more in the long run. Sometimes, cashback offers can distract borrowers from ongoing fees, or a higher interest rate.
That said, it could make sense to take advantage of a cashback offer if the sum of cash being offered, as well as the interest rate, fees, and features of the new product you’re switching to lead to more savings versus your current product.
Cashback refinance offers very often differ between lenders, and can range anywhere from hundreds of dollars to thousands of dollars.
As mentioned earlier, the idea of receiving cash just for refinancing can be a very tempting prospect. But as the saying goes, there’s no such thing as a free lunch, which is why it’s important to do your due diligence before making a decision.
Here are some factor to consider when assessing whether or not a particular refinancing offer makes sense for you:
Absolutely not! You might find a terrific refinance offer without a cashback incentive, which has an attractive interest rate, or offers the features, loan terms and flexibility you’re looking for. This is why it’s important to weigh up all the costs of any potential loan versus your current one, and assess whether it makes financial sense.
As with almost all home loan product, cashback refinance deals can come with eligibility criteria. Some of these can include:
With so many bank and non-bank lenders in the market, comparing cashback refinance deals can be a daunting and time-consuming task. That’s why at iSelect we’ve partnered with Lendi who make the process of comparing home loans products with the goal of refinancing simple.* With Lendi you can compare a range of home loan lenders and products, including available cashback refinance offers, to find a loan that suits you.
As we mentioned earlier, comparing available cashback and other refinance rates can be an overwhelming task. That’s why we’ve partnered with Lendi to make it easier for you to compare home loans, and switch to a product that suits you.* Get started comparing home loans from 35+ lenders online the easy way, or give Lendi a call on 1300 186 260 (08:30-18:30).
Last updated: 6/12/2021