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Updated: Home Loan Sales, Promotions And Incentives - August 2018

Co-author: James Hurwood 

We’ve found a number of home loan sign up incentives on the market in 2018.

Many home loan lenders offer special sign-up deals from time to time as they compete extra-hard with other lenders.

Home loan sales can include things like discounted interest rates, promotional introductory interest rates, and sign-up incentives such as cashback offers, rewards for switching, gift vouchers, and more. While these offers are attractive, it’s important that you don’t sign up for a particular home loan simply to catch the deal. The fundamental aspects of the loan (such as interest rate, fees, features etc.) are still the most important consideration. Canstar’s Home Loan Star Ratings can help you see which home loans offer good value.

We’ve had a comprehensive look through Australian home loan providers to see what kind of offers are available.

The tables below display some of the home loan sales and promotions in Australia that caught our eye at the time of writing (August 2 2018). These tables are divided into two – cashback offers and every other kind of offer, such as reduced fees, interest rates and free rewards points.

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Home loan cashback sales & promotions

Cashback offers involve a bank or lender offering you a cash incentive to take out one of their products. You may receive this cash in hand, or it can be taken out of the fees you’d otherwise be charged. You can also receive it in the form of gift cards to certain stores. The amount of cash you get tends to be much higher than a cashback offer for, say, a credit card.

At the time of writing, Canstar found 10 home loan providers that are currently offering some form of cashback offer or rebate.

The table below provides a snapshot of 5-Star home loans offered by some of these providers, sorted by provider name (A-Z). These results are based on a variable rate P&I loan in NSW for a loan amount of $350,000. 

Home loan cashback sales & promotions
Lender Deal Conditions Expiry
Bank of Melbourne $1500 Cashback for refinances to an Advantage Package home loan. Must have a Bank of Melbourne transaction account linked to the refinanced home loan at the time of settlement. Terms and conditions apply. 31/08/2018
BankSA $1,500 cashback when you refinance to an advantage package home loan. New home loan applications received and settled before 31 August 2018 for refinance purposes. Terms and conditions apply. 31/08/2018
First Option Credit Union Smart Start Home Loan: First Option will contribute up to $1,000 to cover costs

 

Available to first-time property buyers aged 18 to 35 years. Offer is conditional upon the loan settling. Until further notice
Homestar Finance $900 cashback after settlement. See Homestar Finance for more details. Until further notice
Hume Bank $1,500 refinance offer if you switch from another lender. Hume will waive or pay up to $1,500 of set up excluding exit or penalty costs incurred from your current provider. Refinance offer only available on Principal and Interest loan amounts over $100,000. Terms and conditions apply. Until further notice
P&N Bank $1,500 cashback for new home loans. Get $1,500 deposited into your P&N transaction account when taking out a new & Home Loan or Simple Home Loan over $250,000. Terms and conditions apply. Until further notice.

 

Police Bank $1,000 for switching to Police Bank. Terms and conditions apply.  Not available for investment loans. Maximum bonus payment is $1000 for each household that is approved for a refinance. 31/08/18
Reduce Home Loans $1,500 cash back on Reduce’s Investor Rate Buster Home Loan, See Reduce for details. Until further notice
St.George Bank $1500 Cashback for refinances to an Advantage Package home loan. Must have a St.George transaction account linked to the refinanced home loan at the time of settlement. Terms and conditions apply. 31/07/2018.

 

Westpac $1,250 rebate for switching. Rebate available on new home loan applications for refinancing purposes and taken as part of the Premier Advantage Package with a minimum loan size of $150k. Annual Package fee of $395 & terms and conditions apply. Until further notice.
Source: Providers’ websites as analysed by Canstar Editorial team. Based on advertised online promotions. Please note that conditions and exclusions may apply to these offers. Read all terms and conditions provided by the relevant institution.

The products displayed in this table are based on a loan amount of $350,000 (Owner-Occupier) in New South Wales, except for Reduce which is based on an investment home loan ($350,000). 


Other sales & promotions – reduced rates, fees and free rewards points

The following 13 home loan offers allow the customer to take advantage of various other bonuses, such as lower interest rates (fixed and variable), minimal to no fees and even bonus rewards points to spend how you please.

The table below provides a snapshot of 5-Star home loans offered by some of these providers, sorted by provider name (A-Z). These results are based on a variable rate P&I loan in NSW for a loan amount of $350,000. 

Other sales & promotions – reduced rates, fees and free rewards points
Lender Deal Conditions Expiry
ANZ Waive loan approval fee and discount on advertised rate Must be borrowing at least $150,000. Until further notice.
Bank Australia No establishment fee on Variable Basic Home Loans. Not clear on the website. Read the PDS for more information. 30/09/2018
Bank of Sydney Expect More Residential Variable, plus 1,2,3 & 5 year Fixed: Annual package fee waived for the life of the loan, plus discount for life of loan after fixed rate period for fixed products. LVR up to 70%, minimum 1 year in same line of employment, principal & Interest repayments, property situated in Metro postcodes only (excluding NT, WA & TAS). Restrictions apply for properties located in Queensland

 

15/08/2018
Beyond Bank No upfront or ongoing fees on Special Low Rate Variable Home Loan. Only available for new loans or increases to existing loans when the minimum new borrowing amount is $150,000 and the LVR does not exceed 70%. Terms and conditions apply. Until further notice.
Gateway Credit Union home loans Discounted rate on the Variable Premium Package Home Loan. Available for new loans and top-ups of $50,000 or more on owner-occupier loans with a loan to value ratio of less than 80% with principal and interest repayments. Terms and conditions apply. Until further notice.
loans.com.au Discounted investment rate on Smart Loan Package Package your owner-occupied loan with investment loan and receive a discounted investment rate. Until further notice.
My Credit Union 3.39% p.a. (4.31% p.a. comparison rate*) introductory home loan for the first 12 months on the ‘you choose’ introductory loan. Offer only available for owner-occupied home loans over $250,000 for purchases or to refinance from another lender and must be funded within six weeks of approval. Terms and conditions apply. Until further notice.
Newcastle Permanent Premium Plus Package home loan: $0 application fee for personal and car loans, $0 annual Value+ credit card fee, and 100% offset facility. Must be an existing borrower. Must increase home loan amount by $150,000 or more. Terms and conditions apply. Until further notice.
Northern Inland CU Discounted rate on Visa Classic Credit card for life of loan with selected home loan products Home Loan Rewards Visa Classic Credit Card discounted rate applies for the life of the Home Loan, when loan and credit facility are not in arrears. Northern Inland reserves the right to withdraw, extend or vary this offer. Until further notice
QBANK $700 Establishment costs waived. Applies to owner-occupied loans only. Customers will save up to $700 off standard QBANK, valuation, and mortgagee legal fees. Terms and conditions apply. Until further notice.
Suncorp Bank Discounted interest rate on the loan, pay $0 loan establishment fee and $0 monthly account keeping fees. You must pay an annual package fee, hold an Everyday Options Account and have a total customer exposure or approved credit limit of $150,000 or more. Terms and conditions apply. Until further notice.
The Capricornian  Discounted variable rate for 36 months. Converts to a 0.25% discount at the end of the 36 months – not available for construction or interest-only loans. Terms and conditions apply. Until further notice.
Virgin Money  Earn velocity points. 1,000 Points are paid on every $100,000 drawn at settlement, earn a further 1,000 Velocity Points every month. Receive 30,000 Velocity Points every three years. Terms and conditions apply. Until further notice
Source: Providers’ websites as analysed by Canstar Editorial team. Based on advertised online promotions. Please note that conditions and exclusions may apply to these offers. Read all terms and conditions provided by the relevant institution.

The products displayed in this table are based on a loan amount of $350,000 (Owner-Occupier) in New South Wales, with the exception of QBank which is based in Queensland. 

How to find the best home loan sale

Regardless of the home loan sales listed above, choosing a mortgage is never easy and you should always consider more than just the interest rate listed or the sign-up incentive on offer.

There are countless loans out there from different providers, all offering varying features, interest rates, and establishment or application fees. The best thing you can do is to find out as much information as you can about the costs and benefits of the loan on offer, by comparing your options on our website.

You should always do your homework before making a switch and refinancing your home loan, since there may be fees charged such as early exit fees, discharge fees, or break fees (if you are in a fixed rate loan).

It’s not uncommon for home loan offers to hit you with higher interest rates to compensate for the promotional sign-up incentive, but it is possible to find lenders with good rates, low fees, and flexibility if you shop around a bit.

Low comparison rates in 2018

Canstar Research has compiled a general list of the top 5 mortgage products by interest rates for the following types of loans:

  • Standard variable home loans
  • 1-year fixed home loans
  • 3-year fixed home loans
  • 5-year fixed home loans

To view these products, read the article here.

Make sure you compare different home loans

It is incredibly important that you don’t just pick a lender and their product because the sign-up offer looks good. After all, a $1,000 bonus when you take out your loan will soon fade away if you are paying an interest rate that’s higher than you could find elsewhere.

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. There may be an even better home loan sale out there that we might have missed, so be thorough!

Fortunately, Canstar compares thousands of home loan products from over 100 different lenders around Australia. Use our website to start comparing your options:

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