Home loan refinance cashback offers & deals

May of 2022 saw the Reserve Bank of Australia (RBA) raise the cash rate for the first time in more than a decade, and most subsequent month saw further rate hikes, with mortgages going up for variable rate borrowers.

At its final meeting of 2023, in December, the RBA board held the cash rate at 4.35%, and it has remained there since. Top economists predict rate cuts by the end of the year, but for now, rates appear likely to hold steady.

If you’re feeling the effect of the rate hikes and looking around for a new home loan with a lower rate, you may be interested in some of the sign-up deals lenders on our database have on offer for new customers.

While special offers can be attractive for some customers, it’s generally not worth signing up for a particular product solely for a special deal. The fundamental aspects of the loan, such as its interest rate, fees and features, are still important considerations.

Home loan rebates and refinance cashback offers

Home loan cashback offers typically involve a bank or lender offering you an incentive to take out one of its products. You may receive this in cash, or it can be taken out of the fees you’d otherwise be charged. You may also receive it in the form of gift cards for certain stores or brands.

Here’s a selection of home loan providers on our database offering some form of cashback offer or rebate at the time of writing, but please note that any of these offers may be withdrawn by the provider at any time.

Before committing to a particular home loan or lender, it’s a good idea to read the Key Facts Sheet (KFS), Target Market Determination (TMD) and other applicable product documentation. You may also want to confirm the full details of any particular offer with the lender before you make an application.

ANZ – $2000 refinance cashback 

ANZ is offering $2,000 cashback when you refinance an eligible home loan. The offer is available for loans with an LVR of up to 80%, and the applicant must have an ANZ Access Advantage, ANZ One Offset or ANZ Plus account in the name of the borrower or borrowers  at the time of drawdown to receive this offer.

Expires: Offer valid until further notice.

BankSA – $2,000 refinance cashback

BankSA is offering $2,000 cashback when you apply to refinance. Settlement must occur within 120 days of applying. The offer may be varied or withdrawn at any time, and applies to owner Occupier (P&I repayments) and Residential Investment loans, with an LVR of up to 80%. The offer is available for home loans on the Advantage Package ($395 annual package fee) and Basic Home Loan (no annual fee). The minimum loan amount is $200,000. Only one $2,000 cashback offer available per primary applicant within a 12 month period.  The offer excludes refinances from within Westpac Group. Further eligibility requirements and T&Cs apply.

Expires: Offer valid until further notice.

Bank of Queensland (BOQ) – $2,000 refinance cashback

Get $2,000 refinance cashback for new refinance applications settled within 120 days of the application date. The offer is only available on BOQ’s Clear Path, Economy or Fixed Rate home loan products, with a minimum loan amount of $250,000 and a maximum LVR of 80%. Excludes refinancing, restructures and switches from within the BOQ Group, including BOQ, Virgin Money, ME Bank and BOQ Specialist. Further eligibility requirements and T&Cs apply.

Expires: Offer valid until further notice.

Greater Bank – Up to $3,000 cashback

Up to $3,000 cashback available on eligible new home and investment property purchases, as well as refinancing from other lenders. $2,000 cashback is available for loans of $250,000 or more with LVR of less than or equal to 80%, and $3,000 cashback is available for loans of $500,000 or more with LVR of less than or equal to 80%,. Applications must be submitted by 13 May 2024 and funded by 31 August 2024. Further eligibility requirements and T&Cs apply.

Expires: 13/05/2023.

IMB Bank – $2,000 refinance cashback

$2,500 cashback on eligible home loan refinances to IMB with a loan amount of $500,000 or more, and an LVR of 80% or less. The offer is valid until further notice. There is a limit of one cashback per eligible application per 12-month period. Exclusions and T&Cs apply.

Expires: Offer valid until further notice.

ME Bank – Up to $3,000 refinance cashback

ME is offering $3,000 cashback to refinancers who take out a home loan of at least $700,000 with a maximum LVR of 80%, and $2,000 cashback to refinancers who take out a home loan of at least $400,000 and a maximum LVR 80%. The offer is open to owner occupiers and investors who settle within 120 days of the application date. The offer is not available on refinances from ME or from other lenders within the Bank of Queensland Group, including BOQ and Virgin Money Australia. Offer excludes construction loans and owner-occupied loans with interest-only repayments. T&Cs apply and further eligibility requirements may also apply.

Expires: Offer valid until further notice.

Newcastle Permanent (NPBS)– $3,000 online refinance cashback 

Newcastle Permanent says it will give you $3,000 cashback available when you apply to refinance online, for applications submitted from 12 February 2024. The offer is available for loans  of over $250,000 with an LVR of 80% or less. Applications must be submitted through Newcastle Permanent’s online application channel. If eligible, cashback payment will be made after loan settlement to an eligible Newcastle Permanent deposit product. Cashback is only available once per eligible loan, for the first eligible loan only, and is not available in conjunction with any other Newcastle Permanent promotional payment. Offer may be varied or withdrawn at any time. T&Cs apply and further eligibility requirements may also apply.

Expires: Offer available until further notice.

RAMS – $3,000 refinance cashback

RAMS says it will give you a $3,000 rebate available when you refinance to them. The offer is available on their Essential Home Loan, Full Feature and Fixed rate home loan products, and is available for loans with a minimum amount of $250,000. The offer excludes RAMS Line of Credit loans, interest-only owner-occupier loans and switches and refinances from within the Westpac Group. Applications must be settled within 120 days. T&Cs apply and further eligibility requirements may also apply.

Expires: Offer available until further notice.

Reduce Home Loans –  Up to $10,000 refinance cashback

Reduce Home Loans says you can receive from $2,000 up to $10,000 cash back on purchases and refinances with the Rate Lovers Cash Back Variable Home Loan. The minimum loan amount is $250,000, with $2,000 cash back for loans $250,000 and up, $3,000 for loans $500,000 and up, $5,000 for loans $750,000 and up, and $10,000 for loans $2,000,000 and up. Applications must be received by 30 June 2024 and loans must be funded by 31 July 2024. Loans must have an LVR of no more than 90%. Further T&Cs apply, check the website for details.

Expires: 30/06/2024.

St.George Bank – $2,000 refinance cashback

St.George is offering $2,000 cashback when you refinance to one of their home loans. Applications must be settled within 120 days of applying. The offer is available for Owner Occupier (P&I repayments) and Residential Investment loans, with LVR up to 80%. It is available on home loans with St. George’s Advantage Package ($395 annual package fee) and Basic Home Loan (no annual fee). The minimum loan amount is $250,000.  Only one cashback offer is available per primary applicant within a 12 month period. The offer excludes refinances from within Westpac group and may be varied or withdrawn at any time. T&Cs apply and further eligibility requirements may also apply.

Expires: Offer available until further notice.

Summerland Credit Union – $2,000 refinance cashback

Summerland Credit Union is offering $2,000 cashback to the first sixty eligible new or refinance home loans approved in the promotion period. Eligible loans are for eligible products with a minimum loan amount of $250,000 and LVR 80% or less. To receive the offer, a new application for an eligible loan must be submitted between 8 March and 30 June 2024, be one of the first sixty. Eligible loans approved, must settle on or before 30 August 2024. Eligible products are Eco, Basic Variable, Premium, Fixed Rate and Investment Home Loans. T&Cs apply and further eligibility requirements and exclusions may also apply.

Expires: 30/06/2024.

First home loan offers and deals

ANZ – $3,000 first home buyer cashback

A $3,000 cashback bonus is available to help with the costs of buying a first home. The bonus is available for first home buyers who purchase or construct a property with an eligible ANZ home loan of $250,000 or more. Drawdown must be within 180 days of application.  T&Cs apply and further eligibility criteria may also apply.

Expires: Available until further notice.

Source: The information was taken from the website of lenders as at 2 April 2024. All offers may be subject to change or withdrawal at any time.

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Are refinance cashback offers worth it?

If you feel that the rates and fees on your current home loan are too much, or if you’re ready for a change, then you might be considering refinancing, and a refinance cashback deal can seem like a nice incentive. 

Keep in mind, though, that banks and lenders offer these deals because they want to attract your business, so before committing, it is important to do some research and find out if you are actually going to be getting a good deal.

Ultimately, it may not be worth picking a lender and its product just because the sign-up offer looks good. After all, $1,000 cashback when you take out your loan may not ultimately prove to be good value if you are paying an interest rate higher than you could find elsewhere.

As a hypothetical example, according to Canstar’s home loan repayment calculator, over the life of a $600,000 principal and interest loan repaid over 30 years with monthly repayments, a borrower would pay $824,798 in total interest with an interest rate of 7.00%, and $695,029 with an interest rate of 6.00%. That extra percentage point may not seem significant, but over 30 years, it can mean a difference of $129,769 in interest. 

The fees charged and the features that come with the loan (e.g. an offset account, or being able to make extra repayments without penalty) could also play a part in determining whether a loan with a cashback offer for signing up is likely to be a good deal overall.

It is a good idea to do your own research, compare different home loan products and lenders, and decide which home loan is best for you based on what you need, even if it doesn’t have a sign-up offer attached.

What are the pros and cons of home loan refinance offers?

Some potential upsides of refinance cashback offers can include:

• The bonus cash can cover the costs of switching you loan: There are costs associated with switching home loans, and  the cash back you receive from your new provider could be helpful in covering this.
• An incentive to shop around: If you’ve been with the same home loan provider for a while and are feeling like you’re paying too much, a cashback offer can provide an incentive to switch.
• Bonus cash to spend on whatever you want: If the costs associated with breaking your current home loan are minimal, and you find a new provider with a loan that suits your needs, then the bonus cashback can be a nice boost.

It’s important to keep in mind some potential downsides though:

• Costs of breaking your current loan: Breaking out of a home loan can be costly, especially if you are leaving a variable rate loan early, and depending on your current provider, the  break fees you’re charged could be more expensive than the cashback you receive.
• Risk of switching to an unsuitable product: Before you take up a cashback offer, it’s worth weighing up the interest rate of the new home loan, as well as the fees and charges associated, as you may find the loan is not as competitive as others on the market.
• Strict eligibility criteria: The eligibility criteria for refinance cashback can be strict, so it’s important to make sure you’ll actually qualify before committing to a new home loan provider.

How to apply for a cashback home loan?

The process of applying for a home loan refinance is similar to that of applying for any other home loan. Canstar has a checklist of things to do when applying for a home loan, but in general, once you have done your research and found a suitable home loan option, you will either be able to apply with the new lender online, at a branch, or by visiting a mortgage broker.

When you apply, you will be expected to provide information including: 

• Your personal details (ID, passport, etc)
• Details of your employment status
• Details of your earnings, typically including payslips
• Bank and credit card statements 
• A breakdown of your assets and liabilities
• A breakdown of your household expenses
• Details of your current home loan and property

Whether you are a first home buyer, refinancing or buying your next home, Canstar’s Home Loan Star Ratings and Awards can help you get an overall picture of which home loans – including fixed and variable loans for owner-occupiers and investors – may offer outstanding value. 

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If you are thinking about refinancing an existing home loan and want to get an idea of which loans you may be eligible for, Canstar’s eligibility checker tool can help you understand your options and connect you with a mortgage broker.

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