Cashback offers can help you pay applicable bank fees and other upfront charges when refinancing your home loan. These deals are a great way to leverage a short injection of cash into your life, which you can use for various purposes!
However, as lenders change and update their cashback offers regularly, it is essential that you stay up-to-date and informed of the latest deals on the market. In this guide, Joust lists all you need to know about cashback offers and provides you with the most recent deals for November 2022.
In the Aussie home loan market, cashback refers to the money your lender offers once your loan application is approved. It's a financial incentive by lenders to take out a home loan with them.
The payout can either be in the form of a one-time lump sum deposit into your bank account once your home loan has been settled. Alternatively, it could also be deducted from fees you would otherwise pay on your home loan.
Depending on the lender and specific offer, this amount could range from $2,000 to $4,000 (or even higher).
Your bank or lender will generally offer you cashback as an incentive to buy their product and add you to their books. Furthermore, as refinancing costs are often one of the main hurdles for those planning to switch their home loan providers, lenders compete with cashback deals to help you overcome these initial expenses.
As a first-time home buyer, you can also expect additional incentives and extra deals alongside your cashback offer as lenders focus on capturing this market demographic.
Aside from this, cashback deals are usually available for owner-occupier home loans and investment loan refinancing.
How you spend the money received in cashback is entirely your decision. Cashback recipients commonly use the money to pay off refinancing costs such as:
Alternatively, you may want to deposit the funds into an offset account (if you have one), put it towards renovations, or pay Lenders Mortgage Insurance (LMI).
Many customers with owner-occupier home loans pursue this option to match their personal financial circumstances. Refinancing allows you to take advantage of low-interest rates and reduce monthly repayments.
As stated earlier, lenders go the extra mile to get your name in their books. Nevertheless, cashback deals vary based on the lending and eligibility criteria for your owner-occupier home loan and new home buyers. Therefore, always read the fine print to see if you qualify before proceeding with a deal.
These include:
While you may be tempted to rush in for a cashback offer, always study the home loan details of the relevant credit provider and see which of the available options matches your financial situation and needs.
The loan that offers you the lowest interest rates may not always be the cheapest and most competitive option. For example, a low-interest loan with high fees and other charges may have a higher comparison rate than a loan with higher interest rates but lower fees and charges.
Therefore, when you're loan-hunting, keep a watch on the comparison rate. It offers you a more accurate indication of the true cost over the life of the loan. Notably, a comparison rate applies mainly to a fixed-rate period loan.
According to a media release by ABS, on 2 November 2022, the value of new housing loan commitments for owner-occupier lending fell by 9.3% in September, while investment loans lending fell 6%.
However, though lending has fallen consecutively for four months in recent months, the value of loan commitments is significantly higher than pre-pandemic levels.
If you are scouting the market for a home loan for attractive deals that top your existing home loan with cashback, better lending criteria, more features, and add-ons, it's good to compare home loans and cashback deals by leading Aussie lenders.
Expires: 28th February 2023
Apply latest by 28th February 2023, and get loan settlement by 31st May 2023 to avail of this offer which is open to Owner-Occupier loans (principal and interest repayments) and Residential Investment loans (principal, interest and interest Only repayments), with LVR up to 80%. Additionally, your minimum loan amount should be $250,000.
You can access the offer on home loans with the bank's Advantage Package ($395 annual package fee) and Basic Home Loan (no yearly fee). This offer applies credit criteria, exclusions, fees, and terms and conditions.
There is a cap of one cashback payment, irrespective of the number of applicants, applications, loans or properties involved in the year. This condition also extends to joint applications, with only one cashback payment to the primary applicant.
This offer excludes owner-occupier interest-only repayments loans, portfolio loans and residential lending stemming from family or company trusts. Also, any internal refinances and home loan switches within the Westpac Group will not qualify for loan approval.
Customers and investors should seek independent advice on taxation matters arising from this promotion to ensure it matches their personal objectives.
You will receive cashback into your Bank of Melbourne transaction account within 60 days of settlement. The account must match the name in the home loan account and be linked to the home loan at settlement.
In the case of joint loans, the transaction account should be in the same joint name.
Expiry Date: 28th February 2023
At the latest, you must apply for 28th February 2023 and settle by 31st May 2023. The offer is open for Owner-Occupier loans (principal and interest repayments) and Residential Investment loans, with LVR up to 80%.
This offer is available on the Advantage Package with a $395 annual package fee and the Basic Home Loans, which do not have a yearly fee. The minimum loan balance for refinancing should be $250,000.
Within one year, you can avail of only one $4,000 cashback offer per primary applicant (irrespective of the number of applications, applicants, loans, or properties involved).
This offer does not include owner-occupier loans with interest-only repayments, portfolio loans, and residential lending stemming from family or company trusts and refinances within the Westpac Group.
Where there is a joint application, only one cashback payment will be paid to the primary applicant. Also, the transaction account must be in the same joint name.
The offer is subject to credit criteria, ongoing fees, eligibility criteria, conditions, and exclusions by St. George Bank. The bank reserves the right to introduce variations or withdraw the offer at any time.
You will receive your cashback within 60 days of settlement into a St George transaction account. The account should be in the same name as the home loan account and linked for home loan repayments to be directly debited from this account at the time of settlement.
In the case of joint loans, the transaction account should be in the same joint name.
Expires: 31 December 2022
To be eligible for the refinancing cashback offer from HSBC, you must submit your new home loan application for full approval by 31 December 2022 and settle by 28 February 2023. The offer can be availed once only, per customer, within this period.
The maximum cashback amount for the offer is $3,288, limited to one payment per borrowing entity and customer. Moreover, you should not have received a home loan cashback payment before this offer.
Notably, you must refinance from a financial institution other than HSBC Bank Australia.
The minimum refinance amount to avail of the HSBC cashback offer is $250,000. Based on available information, the offer is not valid for principal increases and bridging loans. It also excludes construction loans, non-residents, trusts and companies, and other non-natural persons.
Suppose there is more than one applicant for this home loan, and one applicant receives the cashback. In that case, all the applicants are deemed to have accepted the cashback from HSBC.
HSBC's credit criteria, fees, and charges, as well as terms and conditions, apply.
HSBC will credit the cashback into your HSBC Home Loan account or Transaction account within 60 days of settlement. Your payment account should remain open until the cashback offer is paid.
Expires: 28th February 2023
You should apply by 31 October 2022 and settle by 31st May 2023. Your minimum loan amount should be $250,000, with an LVR of 80%.
Westpac's cashback offer is available for Owner-Occupier loans (with principal and interest repayments) and Investment Property loans (principal and interest & interest-only repayments). Flexi First Option Loans and Premier Advantage Package ($395 annual package fee and terms apply).
Westpac limits only one $2,000 cashback payment, irrespective of the number of applicants, applications, loans, or properties involved per 1-year period. Where there are joint applications, only one cashback payment will be made to the primary applicant.
The offer is not open to Owner Occupier Interest Only; residential lending originated from company or family trusts and refinances within Westpac Group.
You will get the cashback within 60 days of settlement. It will be paid into an open Westpac Choice transaction account. In the case of joint home loans, the transaction account must be in the same joint name.
Expires: 30 November 2022
You should apply by 30 November 2022 and settle by 28 February 2023 (unless the offer is withdrawn prior).
Qualifications for the boost payment are:
Additionally, your LVR and Lenders Mortgage Insurance (if applicable) should be less than or equal to 90%. This offer does not cover pre-approvals, increasing to existing loans or refinances of an existing Suncorp Bank home loan.
Furthermore, you cannot use the Cash Back Boost Payment with other cash offers and incentives. It does not cover pre-approvals, increases to existing loans, or refinances of an existing Suncorp Bank home loan. In addition, you cannot use the Cash Back Boost Payment with other cash offers.
Your applications are all subject to credit approval. Suncorp's charges may be applicable, and the entire terms and conditions will be provided in the loan offer.
If there is more than one borrower, only one payment will be made jointly to those borrowers.
If you are eligible, then the cashback payment will be credited to your Suncorp transaction account held in the borrower's name within 60 days of the settlement date of this loan. Should there be more than one borrower, the transaction account must include the name of all borrowers.
Expires: 31 December 2022
Suncorp's $3,000 bonus rewards borrowers who commit to clean energy. To qualify for the bonus, your property must be fitted with a certified eligible solar power system. Evidence of the system installation at the security property will have to be provided to Suncorp.
Avail of this offer if you apply by 31 December 2022 and settle by 31 March 2023 for a new home loan of at least $500,000, and the Loan to Value Ratio (LVR), including Lender's Mortgage Insurance (LMI), is less than or equal to 90%.
The offer is available on the following Suncorp products:
Exclusions include loans for units, apartments, units, and commercial properties. Nonpersonal borrowers, pre-approvals, or refinances of existing Suncorp Bank home loans are also excluded from this offer. There is a limit of 1 payment to a borrower per application, and this offer is not to be used in conjunction with cash offers from Suncorp Bank.
Suncorp expresses its right to accept applications for solar power systems at its discretion. It may also withdraw or vary the offer at any time.
Eligible borrowers will receive a payment of $3,000 within 120 days of the loan settlement date in a Suncorp Bank transaction account that is in the name of the borrower/s.
Expires: 31 December 2022
Access cashback from The Commonwealth Bank of Australia (CBA) on owner-occupied home loans and all investment home loans where at least $250,000 has been refinanced from another financial institution (excluding CBA or Bankwest). If the amount is at least/exceeds $250,000, Viridian lines of credit may be eligible.
Apply by 31 December 2022, and settle your loan by 31 March 2023. The offer can be accessed by those with eligible home loans funded on and from 1 January 2020.
Owner-occupier home loans with interest-only repayments are eligible if funded from 7 April 2022. However, the offer excludes bridging loans and cannot be clubbed with Wealth Package fee waivers.
Over 12 months, you can access only cashback per borrowing entity and customer. The same limit applies to joint applications. Further, if one of the joint applicants receives cashback in the last 12 months, that person will not qualify for the offer.
Likewise, if all applicants have received a cashback in the past 12 months, the joint loan will not be eligible for the cashback.
The cashback will be deposited in a CBA transaction account linked to the loan or the borrower/s within 90 days of financing the loan. The transaction account can be a joint account with an unrelated party too.
Expires: Until the offer is withdrawn
To be eligible for the National Bank of Australia (NAB) cashback offer, you must refinance an existing loan of $250,000 or more. Also, the primary applicant must hold a NAB transaction account at the time of drawdown. The drawdown should have occurred from 7 September 2020, until the time the offer is withdrawn.
You must refinance your existing home loan with a financial institution other than NAB (excludes refinances with Medfin, UBank, or Advantedge home loans).
Individual applicants can access this offer, including owner-occupiers or residential investor borrowers. However, it does not include refinances of First Home Loan Deposit Scheme loans, businesses, trusts, non-residents, and other non-natural persons.
While this offer is available on all NAB home loan products, it excludes loans for building and construction purposes, lines of credit, NAB Portfolio, and NAB Private Portfolio Facility. In addition, customers can avail of the cash bonus only once per customer within the offer period. So, those refinancing more than one loan will only receive the cash bonus once.
If there's more than one borrower, only the primary borrower is entitled to receive the cash bonus payment. Once a borrower gets the cash bonus during the offer period, no additional cash bonus will be payable on any future refinance wherever that individual is a borrower.
All NAB products are subject to the borrower's eligibility and NAB's lending criteria, terms, conditions, and ongoing fees as applicable. NAB holds the right to vary or withdraw its Cash Bonus offer.
Your cash bonus will be automatically credited to your NAB transaction account within 90 days of drawdown.
Expires: Until the offer is withdrawn
Eligible borrowers can access $4,000 cashback when borrowing 80% or less of the property's value. Meanwhile, the cashback sum is lowered to $2,000 if you want to borrow an amount that is more than 80% of the property's value.
You must refinance your eligible home loan balance of at least $250,000 to ANZ. Notably, this cashback offer is also available to investors looking to refinance with ANZ.
The offer commenced on 29 August 2022 and will be valid until it is withdrawn. (It may be amended or withdrawn at the bank's discretion). You can access only one cashback within any 12-month period, regardless of the number of applications, applicants, loans, or securities.
The fees, charges, eligibility requirements, and terms and conditions of the offer apply. Further, you should not have exceeded the offer exclusion and maximum. You should also draw down your Eligible ANZ Home Loan(s) within 120 days of applying.
The cashback is not accessible to those who have previously and successfully applied to the offer, have redeemed an ANZ home loan offer/promotion, or received a rebate or benefit from ANZ in the 12-month period before applying for the cashback.
Applicants must have an eligible ANZ account in their name at the time of drawdown to receive this offer, or ANZ may not process the cashback payment.
Once you have submitted your claim, if ANZ has not received a valid Switching Cashback payment request, it will automatically choose an eligible ANZ account (if available) and process your payment within 60 days of qualifying for the offer.
Having gone through the cashback options, you're probably concerned about the tax implications of the cashback promotions based on your financial situation and personal objectives.
All financial institutions advise their home loan customers to seek professional advice on taxation matters related to cashback offers and other package or promotional discounts on their home loans. It helps you make informed choices on issues related to loan amounts and similar factors.
According to the Australian Taxation Office (ATO), your cashback does not need to be reported as income since it relates to borrowing, not an investment.
We know refinancing is a big decision for you. For customers refinancing owner-occupier or investment home loans, our Instant Match can help you access competitive cashback offers from leading Aussie banks.
Joust is one of Australia’s most reliable and user-friendly online marketplaces for home loans. Moreso, it's free to use, and you are under no obligation to proceed.
The information in this article is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.
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