If you’re looking to save on upfront costs and get some extra cash when applying for a mortgage, a cashback home loan may be an option for both first home buyers and refinancers.As predicted by the Reserve Bank of Australia, the cash rate is expected to increase multiple times in 2023, making it harder for homeowners to make their loan repayments. For those struggling, refinancing to a lower-rate option may provide some relief.

A cashback home loan is one way for homeowners to save on the cost of switching lenders. In February 2023, 33 lenders are offering cashback deals for eligible customers, ranging from $1,500 to $10,000 depending on the size of the home loan and loan-to-value ratio (LVR).

Cashback deals can also be used to cover the costs of refinancing, which can vary from a few hundred dollars to more depending on lender fees. Alternatively, the extra cash can be used for home upgrades, new appliances or reducing the loan principal.

Most of the cashback deals this month are available for refinancers, but three lenders are also offering deals to new purchasers, including ubank, Heritage Bank, and AMP. Some lenders are also offering waived Lenders Mortgage Insurance and Qantas frequent flyer points as an alternative to cashback. Before making a decision, it’s important to do your research and compare home loan options, including interest rates, fees, and loan features, to find the best deal for your individual circumstances. While a cashback offer may be tempting, it’s important to weigh up all the costs and benefits before making a decision.

February 2023 Cashback Home Loan Deals

This month, eligible customers have access to cashback home loan deals from 33 lenders, with offers ranging from $2,000 to $10,000 depending on the loan amount and loan-to-value ratio (LVR). These cashback deals can be a way to cover the costs of switching lenders, which can be several hundred dollars, or even use the money for home upgrades or to reduce the loan principal.

While the majority of these cashback deals are for refinancers, three lenders, including ubank, Heritage Bank, and AMP, are offering cashback deals to new purchasers as well.

 Reduced Lenders Mortgage Insurance

If you’re a first home buyer who hasn’t saved a deposit of 20% or more, you may be concerned about the cost of Lender’s Mortgage Insurance (LMI). But don’t worry, as there are options available to reduce this upfront expense.

This month, St. George is offering waived or reduced LMI to eligible first home buyers. With this offer, qualified customers can save a significant amount of money, as LMI costs can easily reach tens of thousands of dollars.

To be eligible for St. George’s $1 LMI offer, you must be a first home buyer with a 15% deposit, looking for an owner-occupier home loan under $850,000, and planning to make principal and interest repayments.

Frequent Flyer Points

If you’re more interested in getting free holidays, there’s an option for you too. One lender is offering bulk Qantas frequent flyer points every year to eligible customers.

The Qantas Money Home Loan provides eligible home loan customers (who must be Qantas Frequent Flyer Members) with 100,000 Qantas frequent flyer points every year. These points can be used to travel around the world or within Australia.

This offer is available for first-time buyers and refinancers with established properties (not off-the-plan homes or construction loans). The loan is also available to self-employed homeowners, subject to eligibility criteria.

Remember, while these deals may seem attractive, it’s important to compare interest rates, fees, and loan features before applying for a home loan. Use our Home Loan Calculator to see how potential repayments could fit into your budget.

So, whether you’re a first home buyer or a refinancer, you have options to reduce upfront costs and earn some extra cash or frequent flyer points from the mortgage application process.

Conclusion: In conclusion, reduced Lender’s Mortgage Insurance (LMI) and frequent flyer point deals can be advantageous for first home buyers looking to save on upfront costs or gain travel benefits. St. George is offering waived or reduced LMI to eligible first home buyers with a 15% deposit, while Qantas Money Home Loan is providing 100,000 Qantas frequent flyer points every year to eligible customers. However, it’s important to compare interest rates, fees, and loan features before making a decision. You can use our Home Loan Calculator to see how potential repayments may fit into your budget.