If you’re in the market for a new home loan or considering refinancing, cashback deals can offer a significant financial boost. These offers can help cover upfront costs, reduce your mortgage burden, or even fund some home improvements. However, with cashback incentives becoming scarcer, it’s more important than ever to carefully compare your options before committing to a loan.
The Advantages of Cashback Deals
Cashback offers can provide immediate financial relief, especially when starting a new mortgage. The extra cash can be used to pay for moving expenses, cover legal fees, or even make a dent in your loan principal. However, it’s essential to evaluate the entire loan package. A lucrative cashback deal may come with higher interest rates or fees that could negate the initial benefit, so make sure you’re getting a good deal overall.
The Current Landscape: Limited Cashback Offers
As of August 2024, the number of lenders offering cashback deals has dwindled, with only a few options remaining in the market. Currently, these offers range between $2,000 and $4,000, depending on the lender and your specific circumstances, such as the loan amount and equity in your property.
August 2024 Cashback Offers:
| Lender | Cashback Amount | Eligibility | Notes |
|---|---|---|---|
| ANZ | $2,000 | Refinancers & New Loans | Available for both refinancing and new loans, primarily for first-time buyers. |
| Bank of China | $3,288-$2,000 | Refinancers & New Loans | Higher cashback for refinancing, available for new loans too. |
| Bank of Queensland | $2,000 | Refinancers Only | Limited to refinancers; offer ends mid-August 2024. |
| ME Bank | $3,000 | Refinancers Only | Available for refinancers looking for a competitive deal. |
| Credit Union SA | $2,000 | Refinancers Only | Exclusively for members of the education community and their families. |
| Greater Bank | $2,000-$2,500 | Refinancers & New Loans | Available for both types of borrowers. |
| IMB | $2,000-$4,000 | Refinancers Only | Generous cashback for those looking to refinance. |
Consider Reduced Lenders Mortgage Insurance (LMI) as an Alternative
For those who don’t qualify for cashback deals, especially first-home buyers, another valuable option is reduced or waived Lenders Mortgage Insurance (LMI). LMI can be a significant expense if your deposit is less than 20% of the property’s value. While not all lenders offer this, some provide discounts or waivers, particularly for professionals in fields like healthcare, law, and engineering.
If an LMI waiver isn’t available, consider exploring other support options such as the First Home Owner Grant or the First Home Guarantee, which could provide the financial help you need.
Ready to Find the Best Home Loan Deal?
Finding the right home loan can be challenging, especially with the varying cashback offers and incentives available. At BOA & Co., we’re here to help you navigate these options and secure a mortgage that fits your financial goals. Contact us today at 1300 952 286, info@boanco.com.au, or visit www.boanco.com.au to discover how we can assist you.