️ Highlights:
1. Cashback deals can help offset the costs of refinancing a home loan.
2. In January 2024, there are 11 lenders offering cashback deals, down from 35 in March 2023.
3. Cashback deals range from $2,000 to $10,000 and can be used for moving costs, home improvements, or mortgage debt.
4. Some lenders offer frequent flyer points as a perk for their home loans.
5. First home buyers may have the option of reduced or waived Lenders Mortgage Insurance (LMI) instead of cashback deals.
Navigating the Home Loan Market with Attractive Cashback Offers
As of January 2024, prospective homeowners and those considering refinancing have an array of cashback deals to explore, with 11 lenders offering attractive incentives. This trend marks a significant decrease from the peak in March 2023, when 35 lenders provided such deals. The reduction in cashback offers is attributed to the high number of refinancers in 2023, leading many mortgage lenders to scale back their offerings.
Key Highlights of January 2024 Cashback Deals
- Range of Cashback Offers: The cashback amounts range from $2,000 to $10,000, offering substantial financial benefits to borrowers.
- Versatile Use of Cashback: Borrowers can use these cashbacks for various purposes, including offsetting moving costs, purchasing new appliances, home improvements, or reducing mortgage debt.
- Eligibility Factors: The cashback amount a borrower is eligible for depends on factors like loan amount, loan-to-value ratio (LVR), and specific lender criteria.
Lenders Offering Cashback Deals
- ANZ: Offers $2,000 for refinancers and $3,000 for first home buyers.
- Bank of China, Bank of Queensland, BankSA, ME Bank, RAMS, St. George Bank, Loans.com.au, Greater Bank, Newcastle Permanent: Provide cashback deals ranging from $2,000 to $10,000, with varying conditions for refinancers and new loans.
Additional Incentives Beyond Cashback
- Frequent Flyer Points: Some mortgage products, like the Qantas Money Home Loan, offer frequent flyer points, appealing to homeowners who enjoy travel.
- Reduced Lenders Mortgage Insurance (LMI): First home buyers may benefit from reduced or waived LMI, a significant cost for those with less than a 20% deposit.
Considerations When Choosing a Home Loan
While cashback offers are enticing, it’s crucial to consider other aspects of a home loan, such as interest rates, fees, and features. Prospective borrowers should use tools like the Home Loan Calculator to assess how potential repayments fit into their budget.
Conclusion
The availability of home loan cashback deals in January 2024 provides an opportunity for borrowers to benefit financially while navigating the home loan market. These deals, along with other incentives like frequent flyer points and reduced LMI, make it an opportune time for refinancing or securing a first home loan.