Home Loan Refinance Cashback Offers

What is a cashback refinance offer? 

A cashback offer is a chunk of cash lenders sometimes give you when you refinance your loan, as a thank-you gesture for choosing them over the competition. Typically ranging between $2,000 and $3,000, these cashbacks are no small change and can be helpful in your home loan journey. 

Lenders often use cashback offers to entice borrowers to make the switch from their current lender to the shiny new one. You get to decide what to do with that extra money – whether it’s covering moving expenses, or just treating yourself to something nice. Like a new pair of shoes or a lamp in the shape of a horse. 

Now, while cashbacks are a fantastic perk, it’s crucial to read the fine print. Different lenders might have different rules, and you want to make sure you’re aware of any conditions attached.  

How do cashback offers usually work? 

Cashbacks in home loans are essentially extra money that lenders deposit into your account as a bonus for choosing them. Here’s some of the fine print: 

• Most cashback offers come with a condition related to the minimum loan amount. You might not qualify for the cashback if your loan falls below a specified threshold, like $100,000.
• Cashback incentives often come with a timeframe. To be eligible, borrowers usually need to apply for the loan within a specific period and have the loan settled by a predetermined date.
• Lenders might require you to hold a transaction or savings account with them to receive the cashback. This account serves as the conduit through which the bonus money is delivered.
• Meeting specific eligibility criteria is crucial. This could include the type of loan you’re applying for and the amount you’re borrowing. Ensuring you fit the lender’s criteria is key to securing the cashback.
• Once you’ve met all the conditions and are deemed eligible, the lender will either deposit the cash directly into your bank account, give it to you as a gift voucher, or deduct it from your fees.  

Do cashback offers come with eligibility criteria? 

Cashback offers aren’t just handed out like lollies – they come with their own set of rules: 

• Credit checks: If you’ve got a history of late repayments or defaulting on loans, it might affect your chances of refinancing.
• Loan-to-value ratio: Some lenders may only roll out the cashback red carpet if your loan falls within a certain loan-to-value ratio.
• Size: Fun-size is great for chocolates; not so much for cashback loans. Some lenders might only be willing to offer these deals for loans over a certain threshold.
• Newcomers only: Not all lenders are into sharing the cashback love with everyone. Some play hard to get and only toss the cash to people switching from a different lender. If you’re already in the club, there may be no cashback for you.

How should I approach cashbacks? 

With cashbacks, it’s important to crunch the numbers, stay open-minded, watch out for the fine print, and always keep an eye on those interest rate rises. These are our key dos and don’ts when searching for the right offer:

DO calculate the total loan cost

Before you get starry-eyed at the thought of getting cash back, crunch those numbers. Calculate the whole shebang – interest rates, fees, and the loan as a whole. You want to make sure the entire deal suits you, not just the glitter on top.

DON’T assume cashbacks are always the best deal 

Sure, cashbacks sound cool, but don’t let the hype blind you. Sometimes, other deals might sneak in with lower interest rates or killer perks. Always keep your options open.

DO check competitor offers 

The golden rule of the cashback game: always suss out what the competitors are bringing to the table. It’s a marketplace brawl, and you want the champion deal.

DON’T ignore the fine print

Ah, the fine print. Don’t let it ambush you. Check for any limits on repayments, time constraints, and whatever secrets they’ve stashed in there. You don’t want surprises later!

DO consider your financial goals 

Cashbacks aren’t just about the money; they’ve got to align with your financial plan. Think about your goals – are you on a debt-crushing mission, or is your eye on the savings prize? If a cashback works well with your aspirations, then it could be a match made in financial heaven.

DON’T ignore possible interest rate rises 

Don’t assume your new home loan will be throwing the same rate party forever. Be prepared for possible rate hikes. Can you still pay the bills if the rates see a sharp and sudden rise? That’s the real question. 

What are some alternatives to cashback deals? 

There’s more than one trick up lenders’ sleeves. There are alternatives to cashback offers that may be better suited to you or simply better deals: 

• Lower interest rates
  Some lenders might offer lower interest rates than their competitors, which might mean much higher savings in the long term. 
• No annual fees
  Annual fees? Fortunately, there are lots of lenders out there who don’t charge annual or monthly fees. 
• Waived lenders mortgage insurance
  If you don’t have 20% equity in your home, you might be in for lenders mortgage insurance, even if you paid it on your current loan. However, some lenders might be willing to waive this fee if you’re in a high-income profession (like medicine or engineering). 

But remember that there’s more to a home loan than just the perks. Some of these bonus features might come with their own set of rules – stricter eligibility criteria or extra terms and conditions that might not vibe with everyone. So it’s always a good idea to compare, compare, compare. 

Where can I find and compare Home Loans? 

Sifting through all those cashback and refinance rates? Total brain workout. Instead, switch on your new overhead horse lamp and let iSelect and Lendi make the whole home loan comparison ordeal a breeze. Compare home loans from a range of lenders online.