Virgin Money recently announced it would now offer customers a $2,500 cashback when they refinance their home loan with the lender by 28 August and have their loan settled by 30 October. This deal is available on refinance loans with a minimum loan amount of $300,000 and a loan-to-value ratio (LVR) of up to 80%. Customers would also need to open a Reward Me Home Loan Companion account alongside their loan in order to be eligible for the cashback.
Virgin’s new deal was launched just days after Suncorp Bank released details of their three-tiered refinance cashback incentive, including a special for COVID-19 frontline workers.
New refinancers who apply for a loan with Suncorp by 10 July and settle the loan by 10 November will be offered one of these deals:
- $2,000 refinance cashback: On loans between $250,000 – $749,999 with an LVR below 90%.
- $3,000 refinance cashback: On loans over $750,000 with an LVR below 90%.
- Extra $1,000 cashback: For eligible health, education or emergency services workers on the frontline during COVID-19.
Suncorp’s Executive General Manager of Lending, Glenn Haslam, said this new tiered cashback offer was a way to help Australian homeowners who were struggling with the financial strain of the coronavirus.
“We understand that customers want the choice to use this extra cash to help with the household budget, or to own their home sooner,” Mr Haslam said.
Are cashback deals worth it?
Canstar finance expert Steve Mickenbecker said that while a cashback deal would be a helpful boost in funds for many borrowers, they should be careful to consider the wider context.
“The value of a cashback offer typically represents about one or two months of your home loan repayments, and there are typically around 360 months of repayments for a 30-year loan,” Mr Mickenbecker said.
“So, make sure the decision you’re making gets you into the right home loan for the remaining 358 months.”
Mr Mickenbecker recommended borrowers look closely at the interest rate, fees and flexibility of a loan to determine if it would suit their needs and budget before they look to refinance.
Which lenders are offering cashback deals?
Below is a list of some of the lenders offering cashback deals on selected home loans at the time of writing:
|Home Loans with Cashback Special Offers (For Loans of $500,000)|
|Lender||Loan||Rate||Comparison Rate||Special Offer Details|
|Reduce Home Loans||Cash Back Hero||2.59%||2.59%||Get $2,000 cashback for applications received by 30 June 2020 and funded by 31 July 2020.|
|MOVE Bank||Straightforward Home Loan||2.59%||2.62%||Get $1,000 cashback for new applications submitted and approved by 30 June 2020 and settled by 31 July 2020.|
|St.George / Bank of Melbourne / BankSA||Basic Home Loan||2.64%||2.66%||Get $2,000 cashback for new refinance applications received by 31 July 2020 and settled by 30 September 2020.*|
|People’s Choice Credit Union||Basic Variable Home Loan||2.69%||2.69%||Get $2,000 cashback for new refinance applications received before 30 June 2020, and approved and funded by 31 July 2020.|
|RAMS||Essential Home Loan||2.74%||2.80%||Get $2,000 cashback for new refinance applications received by 30 June 2020 and settled by 31 August 2020.*|
|Virgin Money||Reward Me Home Loan||2.74%||2.91%||Get $2,500 cashback when you refinance or apply for a new home loan by 28 August 2020 and have the loan settled by 30 October 2020.|
|86 400||Own Home Loan||2.74%||3.02%||Get $2,000 cashback for applications received by 30 June 2020 and settled by 31 August 2020.|
|Suncorp Bank||Back to Basics Home Loan||2.78%||2.79%||Get a $2,000 cash bonus for new refinance applications received before 10 July 2020 and settled by 10 November 2020. Extra $1,000 cash bonus available to teachers, emergency workers, doctors, nurses and medical support staff.|
|Commonwealth Bank||Extra Home Loan P&I||2.79%||2.80%||Get $2,000 cashback for new refinance applications received before 3 August 2020 and settled by 9 October 2020.|
|Westpac||Flexi First Option P&I||2.79%||2.80%||Get $2,000 cashback for new refinance applications received by 31 July 2020 and settled by 30 September 2020.*|
|First Option Bank||Smart Start Home Loan||3.69%||3.59%||Get up to $1,000 in establishment costs covered. This loan is for first time property purchasers aged 18-35.|
Source: canstar.com.au and provider websites – 5/06/2020. Based on owner occupier variable home loans available for a loan amount of $500,000, 80% LVR and principal & interest repayments. Where special offer is applicable to a number of loans, the loan with the lowest rate relevant to the offer has been selected. Products in ascending order, first by rate then by comparison rate. Comparison rate based on a loan amount of $150,000 over 25 years. List is not exhaustive, and may not include all available offers relevant to you. Other terms and conditions may apply. Contact the lender for more information. *Excludes switches and refinances of home loans within the Westpac Group, which includes Westpac, St.George, Bank of Melbourne, BankSA and RAMS.