Updated: Home loan deals & offers for April 2021

SEAN CALLERY
Deputy Editor · 8 April 2021
With booming property prices and record amounts being borrowed, Australia’s home loan market is as busy as it’s ever been. If you’re one of the many consumers shopping around, we’ve found a number of home loan cashback sign up incentives on the market this month.

Australian Bureau of Statistics (ABS) data shows that the value of home loan commitments in February 2021 was $28.64 billion, which is almost 50% higher than the same month last year. This followed a record high month for borrowing in January this year. As well as the lure of record-low interest rates currently on offer, some borrowers may be swayed by the prospect of a sign-up offer from a lender.

While special offers can be attractive for some customers seeking a home loan, it may not be worth signing up for a particular product solely for a special deal. The fundamental aspects of the loan, such as interest rate, fees and features, are still important considerations. Whether you are a first home buyer, refinancing or buying your next home, Canstar’s Home Loan Star Ratings can help you get an overall picture of which home loans – including fixed and variable loans for owner occupiers and investors – may offer good value. Some of the home loans on Canstar’s database are shown below, or you can skip straight to the latest special offers we’ve found:

If you’re currently considering a home loan, the comparison table below displays some of the variable rate home loans on our database with links to lenders’ websites that are available for first home buyers. This table is sorted by Star Rating (highest to lowest), followed by comparison rate (lowest-highest). Products shown are principal and interest home loans available for a loan amount of $350K in NSW with an LVR of 80% of the property value.

Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loan selector to view a wider range of home loan products.

*Comparison rate based on loan amount of $150,000 and a term of 25 years. Read the Comparison Rate Warning.

Home loan cashback offers and rebates

Cashback offers typically involve a bank or other kind of 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 9in alphabetical order) that are offering some form of cashback offer or rebate at the time of writing, based on information sourced from their websites on 7 April 2021. Please note that the offers may be withdrawn by the provider at any time.

ANZ: Up to $1,000 rebate on your conveyancing costs

If you’re an eligible first home buyer (including recipients of State or Territory government first home buyer concessions). Only available for home loans of $250,000 or more. Apply before 31 July, 2021. T&Cs apply.

Expires: 31/7/2021

Bank of Melbourne: Up to $4,000 refinance cashback

Up to $2,000 cashback per property for new eligible refinance applications. Plus, $2,000 bonus refinance cashback for eligible new refinance applications with a maximum loan-to-value ratio (LVR) of 80%. Apply by 30 June, 2021 and settle by 30 September, 2021. For new owner occupier loans with principal and interest repayments and investment loans. Offers available on Advantage Package and Basic home loans. $395 annual fee applies to Advantage Package home loan. $250k minimum loan per property refinanced. Excludes Portfolio Loans, switches and refinances from within Westpac Group. T&Cs apply.

Expires: 30/6/2021

BankSA: Up to $4,000 refinance cashback

$2,000 cashback for new eligible refinance applications. Plus, $2,000 bonus refinance cashback for eligible new refinance applications with a maximum LVR of 80%. Offers available on owner occupier loans with principal and interest repayments and investment loans. Applies to Advantage Package and Basic home loans. Apply by 30 June, 2021 and settle by 30 September, 2021. $395 annual fee applies to Advantage Package home loan. $250,000 minimum loan per property refinanced. Excludes Portfolio Loans, switches and refinances from within Westpac Group. T&Cs apply.

Expires: 30/6/2021

Bankwest: $2,000 refinance cashback

$2,000 cashback for eligible applicants who refinance and apply by 30 April, 2021. Loan must be funded by 30 June, 2021. Minimum refinance amount is $250,000. Maximum LVR of 80%. Excludes refinances from Bankwest and CommBank. Further eligibility requirements and T&Cs apply.

Expires: 30/4/21

Bank of Queensland (BOQ): $3,000 refinance cashback

$3,000 cashback available on refinancing new owner occupier or investment home loans of $250,000 or more, with a maximum LVR of 80%. Only available on applications received by 28 May, 2021 (inclusive) and settled by 27 August, 2021. Applies to BOQ’s Clear Path, Economy, Intro Rate, or Fixed Rate home loan products only. Excludes refinancing, restructures and switches from within BOQ Group, including BOQ, Virgin Money and BOQ Specialist. T&Cs apply.

Expires: 28/5/21

Commonwealth Bank: $2,000 refinance cashback

$2,000 cashback available for refinanced owner occupied (principal and interest loans, investment loans and Viridian lines of credit. Not available on bridging loans. Minimum refinance amount of $250,000 applies. New loans and top-ups are not included in the minimum refinance amount. Excludes refinance from Bankwest. Applications must be received by 30 June, 2021 and loan funded by 30 September, 2021. T&Cs apply. CommBank may withdraw the offer at any time.

Expires: 30/6/2021

Credit Union SA: $2,500 cashback

$2,500 cashback available on eligible new home and investment property purchases, as well as refinancing from other lenders where the loan amount is $250,000 or more and maximum LVR is 80%. Excludes fixed-rate special offers and bridging loans.

Expires: Until further notice

HSBC: Up to $3,288 refinance cashback

Up to $3,288 cashback available when you refinance from a financial institution other than HSBC Bank Australia, based on an application submitted before 30 April, 2021 and settled by 30 June, 2021. The offer is only available once per customer and a minimum refinance amount of $250,000 applies. HSBC says the offer excludes construction loans, bridging loans and principal increases, non-residents and non-natural persons (such as trusts and companies). Check with HSBC for full T&Cs.

Expires: 30/4/21

MyState Bank: $2,000 refinance cashback

$2,000 cashback available for approved refinances to MyState Bank from another bank, submitted by 30 June, 2021 and settled within 90 days. Maximum of one $2,000 cashback per application on loans of $250,000 or more with an LVR up to 80%. Check with MyState Bank for full T&Cs.

Expires: 30/6/2021

NAB: $2,000 refinance cashback

$2,000 cashback available when you refinance an existing loan of $250,000 or more and have a NAB transaction account at the time of drawdown, which must occur by 30 April, 2021. Offer applies to individual applicants who are owner-occupiers or investors, and excludes refinances of First Home Loan Deposit Scheme loans, lines of credit, the NAB Portfolio Facility, the NAB Private Portfolio Facility and loans for building and construction purposes. Non-residents, businesses, trusts and other non-natural persons, as well as those refinancing NAB, UBank, Medfin or Advantedge home loans are also excluded. T&Cs apply.

Expires: 30/4/2021

Newcastle Permanent: $2,000 refinance cashback

$2,000 cashback available for switching from another financial institution for both owner occupied and investment home loans. Minimum loan size of $250,000, and maximum LVR of 80%. Applications must be made by 30 June, 2021 and loan must be funded by 31 August, 2021. T&Cs apply.

Expires: 30/6/2021

P&N Bank: $3,000 refinance cashback

$3,000 cashback offer available for eligible home loans with an LVR up to 80%, refinanced from a different financial institution. T&Cs apply.

Expires: 30/4/2021

RAMS: $4,000 refinance cashback

$4,000 cashback available when you refinance your home loan to a new RAMS Home Loan, or take out a new home loan with the lender. On selected loans with a minimum amount of $250,000 only. Refinance offer excludes Line of Credit Loans, switches and refinances from within Westpac Group. Available on eligible applications received by 30 June, 2021 and settled by 31 August, 2021. Refinance offer is not available in conjunction with the New Purchase Buyer $2,000 Rebate, with separate T&Cs and eligibility requirements applying for both offers.

Expires: 30/6/2021

Reduce Home Loans: $1,000 to $5,000 cashback

Between $1,000 and $5,000 cashback available on purchases and refinances with Reduce Home Loans. Reduce Home Loans is offering a $1,000 cashback on eligible Super Saver Cash Back loans (up to 80% LVR) between $250,000 – $499,999.99 and $2,000 cashback on eligible loans between $500,000 and $1,000,000. On its Economizer Cash Back (up to 80% LVR), Cash Back Hero (up to 90% LVR) and Investor Cash Back Hero (up to 90% LVR), it is offering cashback of $3,000 on loan amounts between $250,000 – $999,999.99, and $5,000 on eligible loans above $1,000,000. Loan applications must be received by 30 April, 2021, and funded by 31 May, 2021. T&Cs apply.

Expires: 30/4/2021

St.George Bank: Up to $4,000 refinance cashback

Up to $4,000 cashback, with $2,000 refinance cashback for new refinance applications, plus $2,000 bonus refinance cashback for a new refinance application with maximum LVR of 80%. For new owner-occupier loans with principal and interest repayments and investment loans. Available on Advantage Package and Basic home loans. Apply by 30 April, 2021 and settle by 30 September, 2021. $395 annual fee applies to Advantage Package home loan. $250k minimum loan per property refinanced. Excludes Portfolio Loans, switches and refinances from within Westpac Group. T&Cs apply.

Expires: 30/6/2021

Virgin Money: $3,000 refinance cashback

$3,000 cashback available on refinance applications received by 28 May, 2021 and settled by 27 August, 2021 to eligible fixed rate owner occupied principal and interest refinance loans. Minimum loan amount $300,000 and up to 80% LVR. Not available for refinancing or restructuring existing Virgin Money home loans, or for interest only lending. T&Cs apply.

Expires: 28/5/2021

Westpac: Up to $3,000 refinance cashback

Up to $3,000 cashback with $2,000 per refinanced property and a bonus $1,000 for a borrower’s first application received up to 30 June, 2021 and settled by 30 September, 2021. Available on owner occupier loans with principal and interest repayments and investment loans, with a LVR up to 80% and minimum $250,000 loan per property. Only available on Westpac’s Premier Advantage Package and Flexi First Option home loans ($395 annual package fee). Excludes Equity Access Loans, switches and refinances of home loans within the Westpac Group, which includes St.George, Westpac, Bank of Melbourne, BankSA and RAMS. Offer not available for owner occupier interest only loans or residential lending started under family or company trusts. T&Cs apply.

Expires: 30/06/2021

Consider comparing different home loans before committing

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 that’s higher than you could find elsewhere.

As a hypothetical example, according to Canstar’s home loan repayment calculator, over the life of a $400,000 principal and interest loan repaid over 25 years with monthly repayments, a borrower would pay $5,238 extra in total interest on a loan with an interest rate of 1.99%, compared to one with an interest rate of 1.90%. This assumes the interest rates stayed the same for the duration of the loans.

The fees charged and the features that come with the loan (e.g. an offset account, being able to make extra repayments) 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 could be 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.

Through our Home Loan Star Ratings, Canstar assesses thousands of mortgages from more than 100 providers across Australia, to help you compare home loans and find an outstanding value loan to suit your needs.

Main image source: jax10289/Shutterstock.com

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