According to the latest Canstar Pulse Report, 14% of Australian mortgage holders switched lenders in 2020 in order to get a lower home loan interest rate, with a further 17% intending to switch. As well as the lure of a lower interest rate, some borrowers may be swayed by the prospect of a sign up offer from another lender.
Home loan special offers can include promotional interest rates and sign-up incentives such as cashback offers, rewards for switching and gift vouchers. In this article, we round up:
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.
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 sales and promotions
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 that are offering some form of cashback offer or rebate at the time of writing.
Home loan cashback sales and promotions
|ANZ||Get up to a $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 between 1 October 2020 and 31 July 2021. T&Cs apply.||31/07/2021|
|Bank of Melbourne||Get up to a $4,000 refinance cashback.||$2,000 refinance 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 31 January and settle by 31 March 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.||31/01/2021|
|BankSA||Get up to a $4,000 refinance cashback.||$2,000 refinance 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 31 January and settle by 31 March 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.||31/01/2021|
|Bank of Queensland (BOQ)||Get $3,000 cashback when you refinance to a BOQ home loan.||Available on new owner occupier or investment home loans to BOQ of $250,000 or more, refinanced from another bank with an LVR of 80% or less. Only available on applications received by 26 February 2021 (inclusive) and settled by 28 May 2021. T&Cs apply.||26/02/2021|
|Commonwealth Bank||Get a $2,000 refinance cashback.||Available for owner occupied (principal and interest), investment loans and Viridian lines of credit. Minimum refinance amount of $250k applies. Applications must be received by 31 March 2021 and loan funded by 30 June 2021. T&Cs apply.||31/03/2021|
|NAB||Get a $2,000 refinance cashback.||Available when you refinance an existing loan of $250,000 or more and have a NAB transaction account at the time of drawdown before 30 April 2021. Offer applies to individual applicants who are owner-occupiers or investors, and excludes refinances of First Home Loan Deposit Scheme loans, non-residents, businesses, trusts and other non-natural persons. T&Cs apply.||30/04/2021|
|Newcastle Permanent||Get a $2,000 refinance cashback for switching your home loan from another financial institution.||Available for both owner occupied and investment home loans. Minimum loan size of $250,000, and maximum LVR of 80%. Applications must be made by 28 February 2021 and loan must be funded by 30 April 2021. T&Cs apply.||28/02/2021|
|RAMS||Get a $4,000 cashback 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 28 February 2021, and settled by 30 April 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.||28/02/2021|
|St.George Bank||Get up to a $4,000 refinance cashback.||$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 31 January and settle by 31 March 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.||31/01/2021|
|Virgin Money||Get $3,000 cashback when you refinance or take out a new Virgin Money Reward Me Home Loan.||Available on new refinance applications received by 22 January 2021 and settled by 23 April 2021 for 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. T&Cs apply.||22/01/2021|
|Westpac||Get up to a $3,000 refinance cashback.||$2,000 per refinanced property and a bonus $1,000 for borrower’s first application received up to 31 January 2021 and settled by 31 March 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 Flexi First Option or packaged home loans ($395 annual package fee). Excludes portfolio loans, switches and refinances of home loans within Westpac Group. T&Cs apply.||31/01/2021|
Source: Lenders’ websites as at 7/01/2021.
Other sales and promotions – rewards points, reduced rates, and lower fees
The following home loan offers allow the customer to take advantage of various other bonuses, such as lower interest rates and reduced or waived fees.
Other sales and promotions – reduced rates, fees and free rewards points
|ANZ||Save over $1,800 in the first year on ANZ’s Breakfree home loan package.||The applicable discount varies based on loan amount, total mortgage lending and other eligibility criteria. An eligible applicant will save $1,800 if taking out a $250,000 ANZ Standard Variable Home Loan with a 0.60% p.a. interest rate discount and fee waivers under the ANZ Breakfree package.||Until further notice|
|ING||Split your loan between an Orange Advantage home loan and a Fixed Rate home loan and get the $499 Fixed Rate home loan application fee waived. For owner occupier borrowers, you’ll receive a fixed interest rate discount of 0.10% p.a. off the advertised fixed rates.||In the case of owner-occupier borrowing, max LVR limits may apply. Other T&Cs may apply.||Until further notice|
|loans.com.au||Receive a $5,000 limit Visa Debit Card with 0% interest for the life of the loan when you take out the ZIP Home Loan.||ZIP Home Loan available for owner occupied loans, up to 80% LVR with principal and interest repayments only. ZIP Home Loan Visa Debit Card has a maximum limit of $5,000, and cannot be used as part of loan settlement. Other T&Cs may apply.||Until further notice|
|Newcastle Permanent||Interest rate discounts on Real Deal Home Loan. Get a 1.26% discount when your LVR is 80% or less, or a 0.86% discount when your LVR is 81–94%.||Available for new owner occupied home loans of $150,000 or more with principal and interest repayments. Other T&Cs may apply.||Until further notice|
|Suncorp||Interest rate discounts and $0 loan establishment fee and account keeping fee on Back to Basic Variable Home Loan when combined with an Everyday Option Transaction Account.||Available for new owner occupied home loans of $150,000 or more, with a maximum LVR of 80%, making principal and interest repayments. Other T&Cs may apply.||Until further notice|
Source: Lenders’ websites as at 7/01/2021.
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, a $1,000 bonus 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.
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)
Additional reporting: Elise Donaldson